Meet Xitiki: the trusted savings circle behind many Mozambican households

In Mozambique, there is a traditional rotating savings and credit practice known as xitiki. It is a widely used system among different social groups, usually made up of five, ten or even 12 people, who contribute part of their monthly salary so that each member of the group benefits in turn. There are several ways of describing xitiki, but it can be understood as an informal rotating credit system — monthly, weekly or even daily — and without interest.

This practice is common among informal traders, civil servants, groups of friends and family members. Some participants say xitiki allows access to significant amounts, depending on the rules set by the group. For example, in a group of 10 members where each contributes the equivalent of €100 per month, each participant can receive €1,000 when their turn arrives.João Machel, who is self-employed, highlights the advantages of the system: “It is a way of saving money so that later, when it comes in, you can withdraw it and continue with the business.

It stretches like a salary; it is like working for a salary,” he said. The amounts received are generally used for small investments, home improvements or the purchase of higher-value goods. However, they are also used to respond to unexpected situations.

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“For example, if you have a child who suddenly falls ill, you can use that money to buy medicine. Or if you suddenly lose your job, you can start a business,” she said. For some people, xitiki helps ensure basic needs are met.

Anselma Cumaio says that thanks to this practice, she no longer depends solely on her salary for essential expenses: “I have a basic basket, from sugar… it is different when, for example, I have 2,000 meticais, I cannot take it for potatoes. But when I do xitiki, there is a chance to get potatoes, sugar, chicken. It really helps,” she said.

The functioning of xitiki depends on trust between participants. This element is considered essential to ensure that financial commitments are met.

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