\u201cEven when the loans are not large amounts, they have allowed me to keep moving forward with my small businesses and not depend on anyone,\u201d Bastien said.<\/p>\n
AV\u00c8K, which stands for \u201cAsosyasyon Vilajwaz Epay ak Kredi\u201d in Haitian Creole, or village savings and loan associations, are community groups that help members save money and make out small loans to them. The word in Haitian Creole also means \u201ctogether,\u201d an intentional play on words meant to connote the collaborative, supportive nature built on mutual trust that participants like Bastien find alluring. Located mostly in areas where banks are already scarce, the groups have become a lifeline in the capital\u2019s metropolitan area, which is under such heavy gang control that visiting existing financial institutions is often a dangerous errand.\u00a0<\/p>\n
From disaster comes an uplifting opportunity\u00a0<\/p>\n
AVEK groups are modeled after an initiative popularized in Niger in the 1990s by CARE International<\/a>, according to the Implementation Guide<\/a> of Village Savings and Loan Associations in Cocoa Communities. The goal then was to expand financial inclusion among low-income and rural communities. When the January 12, 2010, earthquake<\/a> struck Haiti, CARE brought in the approach as a way to strengthen the economies of the most vulnerable communities. It encourages local savings and provides small loans managed by the group\u2019s members to support income-generating activities or help families cope with emergencies.<\/p>\n By 2015, according to a CARE report<\/a> that year, it had helped create more than 1,200 AV\u00c8K groups throughout Haiti that collectively saved more than $1.2 million. Other groups, including Fonkoze<\/a>, have also adopted the model. In 2022, the World Bank reported that Haiti has more than 10,000 savings groups<\/a> in the informal sector, including mutual solidarity groups (MUSO<\/a>) and AV\u00c8K groups. Some similar-sounding groups, proven controversial for functioning more like pyramid scams, are also included in the World Bank figure.<\/p>\n \u201cIt\u2019s one of the best decisions I\u2019ve made in my life to join an AV\u00c8K, especially the one established in Tabarre,\u201d said Bastien, a father of two.\u00a0<\/p>\n \u201cTo this day, I remain connected to it, even from afar, because through it I continue to invest \u2014 even in small ways \u2014 in my country,\u201d he said.<\/p>\n Members pool their money, save and lend to one another<\/p>\n More than any feature of an AV\u00c8K, members say what makes the savings club work is their trust. However, the groups do have an agreed-upon system or structure to gather, save or lend funding.<\/p>\n Bastien\u2019s local AV\u00c8K, for one, has operated on a 12-month cycle since its creation in 2020. It has grown from about 20 to nearly 100 members. Founder Jean Bazin said they meet every Sunday to make their agreed-upon contributions to a shared fund managed and kept safe by an elected committee.<\/p>\n \u201cIt\u2019s easier to get a loan with AV\u00c8K. They are different from bank loans\u2014they are based on trust, since everyone knows each other and can provide references, have a short processing time, and charge very low interest rates.\u201d<\/p>\n Jean Bazin, one of the founders of AV\u00c8K in Tabarre<\/p>\n Each individual contribution, called a \u201cshare,\u201d is set at 1,000 gourdes, about $8. Members can buy one to 10 shares per meeting. Each person\u2019s shares are then returned to them when the cycle ends in December.<\/p>\n When the fund is large enough, members can take out loans repayable with 1% to 1.5% interest within the 12 months. The interest paid is shared among all members in proportion to their contributions, with adjustment made for anyone who has an outstanding loan not yet paid.<\/p>\n \u201cIt\u2019s easier to get a loan with AV\u00c8K,\u201d said Bazin, who, along with the first members, received training on the AV\u00c8K model in 2019.\u00a0<\/p>\n \u201cThey are different from bank loans,\u201d he explains. \u201cThey are based on trust, since everyone knows each other and can provide references, have a short processing time, and charge very low interest rates.\u201d<\/p>\n Similar models breed confusion<\/p>\n For centuries in Haiti, one form of informal savings system that already existed is the humble \u201csol.\u201d In this arrangement, a trusted group gets together to contribute equal amounts into one pool at agreed times. Then, each participant takes turns receiving the full, pooled sum \u2014 while continuing to contribute even after their turn \u2014 until all members have received the same amount.<\/p>\n While the \u201csol\u201d allows members to save money, it does not allow them to lend funds to one another.\u00a0<\/p>\n \u201cEven when the loans are not large amounts, they have allowed me to keep moving forward with my small businesses and not depend on anyone.\u201d<\/p>\n Julmice Bastien, 5-year AV\u00c8K member<\/p>\n For Lovena Nelson, 43, a member of the Bastien\u2019s AV\u00c8K since 2021, the arrangement should be replicated across Haiti, given that access to credit for the most vulnerable remains virtually nonexistent.<\/p>\n \u201cWhen I joined AV\u00c8K, I didn\u2019t take any loans at first because I didn\u2019t have a business,\u201d she explained. \u201cBut when I decided to start, my first loan was about 250,000 gourdes [$1,924]. I eventually borrowed up to one million gourdes through AV\u00c8K.\u201d\u00a0<\/p>\n She now runs a cosmetics and hardware business.\u00a0<\/p>\n \u201cThe institution taught me the importance of saving and setting money aside,\u201d the entrepreneur said.<\/p>\n Past fraudulent cooperatives leave bad mark<\/p>\n Within their local AV\u00c8K, more than 6 million gourdes can circulate during a 12-month cycle through savings, loans and interest, says Bazin. This activity led to the creation of a larger cooperative<\/a>, which The Haitian Times is also not identifying for security reasons, by existing AV\u00c8K members.<\/p>\n Under those community savings clubs, which began in 1937<\/a> in a northern Haiti port town, members also save together and borrow from the fund under set terms. In the 2000s, however, a new crop of cooperatives<\/a> promised 10% to 12% monthly interest to attract new deposits. In reality, these groups resembled pyramid scams in their membership requirements and were involved in numerous unsound, unethical and illegal schemes across all levels of Haitian society. In all, according to the Haitian Microfinance Market Analysis conducted by Fonkoze, participants in these new versions of cooperatives suffered losses of more than $200 million<\/a>.<\/p>\n For Bazin, the difference with cooperatives lies in trust, as every member knows each other personally. He explains that they belong to the same church, work at the same company, or are friends involved in several joint initiatives. To accept a new member, an existing member must recommend and vouch for them.<\/p>\n Furthermore, a study by the Institute for Training and Support of Small and Medium Enterprises (IFEPME<\/a>) highlights the challenges AV\u00c8K faces in providing credit to the most vulnerable, with over 80% of urban households<\/a> below the poverty line in 2018. The study notes that the most common problem is members\u2019 inability to repay loans, often worsened by inflation, political instability, fluctuating market prices, and now insecurity. Because AV\u00c8K relies on members\u2019 savings, its stability can be compromised when the economic situation deteriorates.\u00a0<\/p>\n According to IFEPME, AV\u00c8K groups often lack protections like insurance or guarantees. They also cannot meet all financial needs, especially larger loans or services offered by banks. The institute stresses the need for additional support mechanisms to help them manage risks and protect funds.<\/p>\n Nelson says to observe a lack of engagement from some members, who often refused to take on leadership responsibilities, leaving the management of funds to a single committee.\u00a0<\/p>\n Savings associations praised by their members\u00a0<\/p>\n These funds are then used to provide loans for various needs, such as school fees, land leasing, vehicle purchases, starting a business or buying goods to grow a business. This was the case for Daphkar Macajoux, an accountant and mother of two, whose first loan of 250,000 gourdes about $1,924 was intended to expand her business, she explains.<\/p>\n \u201cBefore I took the loan, my business was struggling a lot. But after, it was completely different, even though I haven\u2019t yet reached my goals,\u201d says Macajoux, who does not fully grasp the challenges of community credit associations. \u201cThis is an initiative that should be expanded across the country so that people can rise out of poverty.\u201d<\/p>\n Jacquelin Prince, an agronomist living in Delmas, shares a similar view. He joined the AV\u00c8K through a friend and sees it as an effective economic tool, helping those with limited means access opportunities and financial resources to manage themselves and grow. From his first participation, he requested a loan of 300,000 gourdes to invest in his business without waiting for a second cycle.<\/p>\n \u201cI think that money helped me a lot in my business; it allowed me to relaunch it and buy more products to sell,\u201d Prince. \u201cI believe it is more than a necessity to encourage and promote this type of activity.\u201d<\/p>\n \t\t\tLike this:<\/p>\n Like Loading…<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/03\/IMG-20260227-WA0102.jpg\")
A brochure about a local AV\u00c8K group. Photo by Juhakenson Blaise
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A brochure about a local AV\u00c8K group. Photo by Juhakenson Blaise
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