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ABSTRACT
This article investigates how unofficial and official laws interact in regulating rotating savings and credit associations (ROSCA) in the Tigray Regional State in northern Ethiopia. ROSCAs are informal institutions that provide saving and lending facilities in traditional communities and societies across the world. In Ethiopia, they are known by the name “Eqqub.” First, essential background information on ROSCA will be provided, including references to the existing scientific literature. A second section will clarify the methodology used for the empirical research on “Eqqub” in the Tigray Regional State. The third part of the paper presents the actual findings of that investigation on the ground, especially concentrating on legal issues surrounding the governance of “Eqqub.” One of the main conclusions will be that the regulation of informal credit networks in northern Ethiopia is a paramount example of how normative pluralism works in practice, with official and unofficial laws and institutions interacting in subtle ways to order socio-economic reality.
Acknowledgment
This publication presents part of the results of the project “Taking Customary Laws Seriously: The Governance of Credit and Finance in the Regional State of Tigray, Ethiopia” funded through a grant of the Flemish Interuniversity Council's South Initiative Program (ZEIN2014Z159). The authors would like to express their thanks to Mr Habtamu Bulti Belsha, Mr Zbelo Haileslase, Mr Tesfaleam Kahsay, Mr Sebastian Krafzik, Mr Benjamin Verheye, and the management of Rahawa Eqqub for their assistance at different stages in the process of preparing this paper. The authors also benefitted from useful comments by Dr Lina Kestemont and Professors Rozane De Cock and Jeroen Maesschalck on the qualitative research method design for this paper. The usual disclaimer applies.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1. In the local language of Tigray, Eqqub leaders are called Dagna (
) which means both “leader” and “judge”.
2. Mihret H/ Mariam V Mezgebe G/ Tsadik and Tesfalem Kahsay, Kedamay weyane Wereda Court, File number 08687.
3. The Civil Code of Empire of Ethiopia, article 2016 (2).
4. Negash Tesehaye and Asgedom Desta V Gebremeskel Gebremedhin, Semien Wereda Court, File number 09615.
5. The civil Code of The empire of Ethiopia, article 2489 (2).
6. Hagos Haftu V Driba Hiruye and Biniam Gebrehiwot, Semien Wereda Court, File number 11746; Abadi Asmare V Desalegn Asefa, Hadinet wereda Court, File number 04924.
7. Mulugeta Desalew and other V Ayele Debela, Federal Supreme Court, Cassation Bench, File number 46019, Cassation decisions volume 10: “
”.
8. The name in the lot box can be different from the real name of the ROSCA member. In most cases they use the name they consider is their ‘lucky name’ including the name of St. Marry or Angel Gabriel or whatever in the lot. The real name of the member along other details is registered in the main recording book of the ROSCA. Therefore, it is quite possible that the buyer and the seller of the lot may not even know each other.
9. Abadi Amare V Dessalegn Asefa, Hadinet Wereda Court, File number 04924; Ebuy Nega V Teklu Hishe and Tumay Hailu, Hadinet Wereda Court, File number 04831.
10. The Criminal Code of Ethiopia, Federal Negarit Gazetta, Proclamation No.414/2004, Article 693. According to this provision, the act of drawing a check without cover is punishable up to 10 years rigorous imprisonment. The act is punishable even when it is committed negligently.
11. Trhas Belay V Bereket Weldu and Mebrahtu Gebreslasie, File number 09114, Kedamaya Weyane Wereda Court.