!!!!!!!!

AFRICAN
FRIENDS
AND
MONEY
MATTERS
" condensed edition #

By
David Maranz

!!!!!!!!
-1-
 AFRICAN FRIENDS AND MONEY MATTERS

>>> condensed edition <<<

by David E. Maranz

Table of Contents:
Chapter 1 Introduction
Chapter 2 Use of Resources
Chapter 3 Friendship
Chapter 4 The Role of Solidarity
Chapter 5 Society and People of Means
Chapter 6 Loans and Debts
Chapter 7 Business Matters

Chapter 1: INTRODUCTION

The “Observations” about finances

The ninety “Observations” related to personal finances that are
presented here represent typical behaviors. They are “observations” in
the sense that they attempt to express the unwritten rules that Africans
unconsciously follow in their behaviors related to the use of money and
other resources. The observations are just that. Africans, and Westerners
in the descriptions related to them, have been observed countless times
using their resources in the ways described. Some seem to contradict
others. That is natural. People from all cultures behave differently at dif-
ferent times and in different moods. Emotions, recent experiences, family
conflicts, health, and many other factors influence behaviors at any one
moment. People in all cultures also always have many possible behaviors
to chose from at any one time but they tend to follow certain patterns of
behavior in similar circumstances. These patterns are distilled in the “ob-
servations” found in the following pages.
So these “observations” represent behaviors that have been ob-
served across Africa. Some have regional or local variations, or are more
typical of one region than another. Africa is a huge continent and it in-
cludes peoples of many different cultures. Although all have definite
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“African” characteristics, there is great variety between and within Afri-
can societies: Traditional, Muslim, Christian, urban, rural, nomadic, cat-
tle-herding, coastal, forest, semi-desert, and others. Besides the large
categories of cultures, individuals within each one have their own per-
sonal ways of behaving. Still, the “observations” have been found to be
generally valid approximations of peoples’ practices in relation to money
and other resources. Experiences lived and comments received from both
ends of the continent, from Senegal to Kenya, and from many points be-
tween, indicate that they are overwhelmingly valid.
Some Observations have a “W” after the number. Where the be-
haviors and thinking of Africans and Westerners differ radically from
each other, the “W” sections give the Western viewpoint. An Afro-
American is considered to be a Westerner, as a foreigner’s culture, not
skin color, is the major distinguishing characteristic. Although the author
recognizes that western culture can be divided into many cultures and
sub-cultures, for the purposes of this book the term “Western” seems jus-
tified. Most of the individuals visiting or living in Africa will have in
common most of the attitudes and behaviors toward money and other re-
sources that are in focus, so that their general culture can be contrasted
with that of African behaviors in these matters.

Chapter 2: USE OF RESOURCES

Introduction. The giving, borrowing and loaning of money and ma-

terial goods demonstrates solidarity, generosity, and acceptance by soci-
ety. (These are three of the highest values in African cultures.) They are
essential elements of being a valued member of the community.
In contrast, persons who refuse to share, to give and to loan of their
resources demonstrate a refusal to be integral members of society. Such
persons are considered to be selfish, egoistical, and disdainful of friends,
relatives and even of those outside their immediate social circle.
Africans are basically content to be part of this way of sharing re-
sources. They consider this way of life to be superior to what they under-
stand to be the Western way: Individualistic and independent, with an
over-personalized concept of resource ownership. Sometimes they com-
plain of the burden of the “system” but end up strongly defending it,
overall. They are not happy with those who abuse their generosity, but
they put up with them; this is part of being generous.

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General Practices
1. The financial need that occurs first has first claim
on the available resources.
2. Resources are to be used, not hoarded.
3. Money is to be spent before friends or relatives
ask to “borrow” it.
4. If something is not being actively used, it is con-
sidered to be “available.”
5. Africans are very sensitive and alert to the needs
of others, and are quite ready to share their re-
sources.
6. The fact that most people are over-extended fi-
nancially produces profound effects on society.
The Social Use of Resources
7. Being involved financially and materially with
friends and relatives is a very important element
of social interaction.
7W. Westerners distrust friendships that regularly
include financial or material exchanges.
8. People assist their friends who are in financial
need as a form of investment for those future
times when they themselves might have needs.
This arrangement constitutes a virtual banking or
savings system.
9. The financial implications of friendship and soli-
darity go beyond immediate friends to include
“secondary” relationships.
10. Not all Africans follow the normal and accepted
financial principles of sharing that society dic-
tates, but people who do not do so pay a very
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 heavy social price: They are shunned and margin-
alized by friends and relatives.
11. Many people buy meals at canteens set up on
many street corners, outside of factory gates, and
at other convenient locations.
12. Africans readily share space and things but are
possessive of knowledge.
12W. Westerners readily share their knowledge but
are possessive of things and space.
The Role of Recipients
13. The person requesting a thing or money from a
friend or relative has a dominant role in determin-
ing whether his or her need is greater than that of
the potential donor, and consequently, of whether
or not the potential donor should “donate.”
13W. To a Westerner if a person has a right to take
someone else’s goods, or to unilaterally change
the designation of spending of entrusted funds, it
amounts to socially sanctioned theft.
14. A person to whom money or other resource is en-
trusted has a major say in how that money or re-
source will be used.
14W. The designation of how funds or other re-
sources are to be used, that is made by the pro-
vider, must be followed by the recipient or trus-
tee. Only if the provider agrees, and before the
resources are used or spent, may the resources
be used for another purpose.
15. People who have many possessions or a “sur-
plus” of money are pre-judged to be selfish ego-
ists who are insensible to the needs of others.
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Budgeting and Accounting
16. Precision is to be avoided in accounting as it
shows the lack of a generous spirit.
16W. Precision is essential in accounting; laxity, le-
niency, permissiveness or “flexibility” will in the
long run be perilous for individuals and for society
at large.
17. Budgeting, in a formal accounting sense, is not
an accepted way of handling personal finances.
18. Africans do not “budget” for special events;
rather, they spend as much money and other re-
sources as they can marshal for each one.
19. Personal spending is quite categorized.
20. Living beyond one’s means and income is ac-
cepted as normal, and is almost universally prac-
ticed.
21. When someone goes on an errand to make a pur-
chase for another, if they are given a bill or coin
that is greater than the amount of the purchase,
the person running the errand will normally keep
the change unless asked for it.
21W. A Westerner expects that if a person makes a
purchase for him, any “change” is considered to
belong to the Westerner, and is automatically re-
quired to be returned unless he expressly says,
“keep the change.”
Other Uses
22. Many African institutions are well-supported
financially.

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23. Fund-raising is frequently done on a neighbor-
hood basis for neighborhood financial needs.
24. Many products are purchased in very small
amounts even though the unit cost is much higher
than for purchases In larger quantities.

Chapter 3. FRIENDSHIP

Introduction. Friendship is a very big subject; only some of the economic

considerations will dealt with here. For most Africans and Westerners
alike, the subject of cross-cultural or cross-racial friendship is a difficult
one. For Africans and European foreigners alike it is difficult to forget
history, the relationships of power that the white man represents, the
economic disparities, the color of skin, and perhaps above all, it is diffi-
cult to overcome the great cultural differences that exist in the broad area
of interpersonal relations. Relations with aquaintances or business asso-
ciates may be friendly or even cordial, but developing really significant
friendships is typically difficult.
In the West, the emotional component of friendship is emphasized.
Kinship relations are also largely defined in terms of their emotional con-
tent or value. In these relationships the exchange of money or posses-
sions is mistrusted and avoided except in unforeseen or special circum-
stances. “Disinterested friendship” is the ideal.
In Africa, relationships between friends and kin are frequently clas-
sified fundamentally in terms of the kinds of material transactions that
are associated with them: what material goods are to be given and re-
ceived in particular relationships and circumstances. Such material trans-
actions may involve possessions, money, personal services, food, and
even babies.
Friendship in Africa is much more than “friendly” relationships be-
tween two or more people. It involves concepts of solidarity, hospitality,
sharing of resources, obligatory frequent interaction, and living as com-
munity, that is, living practically as a large family. A normal circle of
friends includes many people. In the West friendship can probably be de-
fined as normally being restricted to a relatively few people. Perhaps
Westerners can best understand friendship in Africa as combining into
one category what in the West would be separate categories of friends
and business associates.
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Networks
25. A network of friends is a network of resources.
25W. Disinterested friendship is the ideal in the
West. Any friendship that includes material con-
siderations is suspect.
26. People constantly work at maintaining and
enlarging their network of friends.
27. Friendships and other relationships are built and
maintained with gifts.
28. Visiting is concentrated on friends and acquaint-
ances who are actively part of a person’s eco-
nomic network.
29. Most networking is done “horizontally” or “up”
and seldom “down” socially or economically.
Etiquette
30. Africans are more hospitable than charitable.
30W. Westerners are more charitable than hospita-
ble.
31. Compliments are frequently given indirectly in
the form of requests for gifts or loans, and are of-
ten formulated as questions.
31W. Westerners are not accustomed to compli-
ments being formulated as requests, and easily
misinterpret them and take offense.
32. If a Westerner has a misunderstanding about fi-
nances with an African friend it is virtually im-
possible to straighten it out directly with the of-
fended individual.

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33. Africans prefer to apologize symbolically, rather
than verbally, when they have made a mistake or
feel personal shame.
34. Many Africans in need are very discreet about
asking for assistance, only hinting at their needs.
35. Africans find security in ambiguous arrange-
ments, plans, and speech.
35W. Westerners find security in clearly defined rela-
tionships, arrangements, plans and speech.

Chapter 4. THE ROLE OF SOLIDARITY

Introduction. “Solidarity” here means “mutual economic and social

support, being hospitable, putting group interest ahead of individual in-
terest to the extent of showing a definite bias against individuality, and
active participation in society.” In a word it means inter-dependence
rather than independence. It also means living in community rather than
living in social or spatial isolation.
Many Africans I have talked to have freely admitted that a major
part of the high value they place on social solidarity comes from the fact
that Africans need each other. They greatly depend upon friends and
relatives for material as well as emotional support. It seems clear that
suffering, poverty, weakness, and compassion tend to unite people – the
African view of themselves -- while affluence, riches, individuality and
success serve to divide people and lead to relative isolation – the African
view of the West and of their own elites.
Sharing Resources
36. Showing solidarity with friends at times of funer-
als, naming ceremonies, feast days, weddings,
etc., is extremely important. This is primarily
done by attendance at these events and by con-
tributing financially.

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37. A great many economic needs in Africa are met
or alleviated through the solidarity and generosity
of relatives and friends.
37W. Westerners greatly admire the high degree of
solidarity and generosity they see between Afri-
can friends and relatives, but they find it difficult
to be full participants in the society.
38. When people ask for help, they will usually be
content with being given a part (sometimes even
a small part) of what they are asking for.
39. Offers of gifts, food, or hospitality may involve fu-
ture obligations; refusals of offers may carry
negative implications.
40. When you give to beggars, they are doing you a
favor by allowing you to gain credit with Allah.
Effects of Solidarity
41. In many rural communities, and less so in urban
neighborhoods, people are afraid to accumulate
more goods or property than their neighbors and
kin, for fear of creating jealousy which may lead
to reprisals being carried out against them on an
occult level.
42. Money ‘corrupted’ is not expected to be paid
back; accountability is not enforced, restitution is
not practiced.
43. A major function of “government” is to provide
money and other resources to those members of
society who are in power or have a close rela-
tionship to those who are in power.

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44. Giving preference to the employment of kin over
non-kin is a normal expression of family responsi-
bility and solidarity.
45. An unjust settlement of a dispute is better than
an offended complainant.
45W. For the Westerner, settlements need to be
based on a fair interpretation of the terms of the
relevant law or contract. Personal feelings or
other subjective considerations should be subor-
dinated objective facts.

Chapter 5. SOCIETY AND PEOPLE OF MEANS

Introduction. The impression may be given that all Africans are

ready to part with their resources and that there is no end to their gener-
osity. This is of course not the case, especially among more wealthy or
highly placed Africans. The behavior of people often referred to as “Elite
Africans” can be quite different from that of the ordinary people who are
in focus in this study.
David Jacobson studied the elites of Uganda some years ago. His
descriptions are remarkably similar to many economic practices seen
across the continent. He found definite limits to African generosity.
Elite Africans do relate to their non-elite kinsmen, but not fre-
quently and usually not if they can avoid them. Kinship obligations con-
nect kinsmen in the two classes, but upper-class Africans do not always
acknowledge or meet these duties. They assist their poorer relatives, but
with reluctance. The less fortunate relatives of such uppity kin deeply
feel, resent and criticize such behavior.
People of Means
46. The place in society assigned to people who
have perceived ample financial resources is that
of givers and/or loaners, and not of receivers.

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47. People typically receive satisfaction from being
asked for financial help, whether or not they are
disposed to provide it.
47W. Westerners are largely annoyed by requests for
help, and find it hard to even imagine receiving
enjoyment from being solicited, or from taking the
role of a “patron.”
48. The reputation of “people of means” is enhanced
through the frequent visits of their clients.
48W. Foreigners are typically frustrated and incon-
venienced by frequent, uninvited visits of African
friends and acquaintances.
49. Leaders in society (religious, political, and busi-
ness) are expected to be people (mainly men)
who have a retinue of followers, who distribute
resources and in other ways provide for their fol-
lowers when they have needs. They also ideally
have commanding personalities.
50. A person or organization with financial means is
basically expected to pay a higher price or make
a larger contribution to individuals or society than
is a poor person or orgnization.
Practicing the System
51. Success in life is attained through personal rela-
tionships, through connections with people in po-
sitions of power and authority, and through spiri-
tual means.
51W. Success in life is attained through ability, hard
work, education, and delayed gratification, estab-
lished within the framework of a just society.

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52. People who are without ample financial re-
sources typically seek to have a long-term “cli-
ent” relationship with as many people, “patrons,”
as possible from among those with resources.
53. Financial matters involve a great amount of
strategizing and gamesmanship.
54. When a person has a financial need, the most
appropriate and likely candidate is mentally se-
lected and then approached for help.
55. People with moderate to extensive means can be
divided into the “hiders” and the “revealers.”
56. The only means of accumulating savings that is
available to many employees are cash advances
from their employers against future work1.
Chapter 6: LOANS AND DEBTS

Introduction. Loans and debts in Africa represent not just economic

activity, but integral elements of social interaction. They constitute some
of the strong social ties that bind people together. They form a part of
everyday life that Westerners would not imagine. In the West loans and
debts are mostly business matters, carried on with banks and other lend-
ing institutions. Such transactions are not managed on a personal level.
Lenders are obligated, officially at least, to treat all potential borrowers
equally. The conditions set for one person are supposed to be the condi-
tions set for all adult members of society. Once loans are made, there is
strict collection of debts, with little tolerance of delinquency.
In Africa most loans and debts are handled on an individual basis
and are inseparable from personal relationships and social life. To be
sure, banks exist, but most of their customers are wealthy or prominent
people or medium- to large-scale businesses, governments, and interna-
tional agencies.
In reading the observations in this section, note that there is an im-
plicit, pervasive, and consistent bias in the design of some of the rules on
the level of personal finances. They favor the less fortunate and less
wealthy members of society. For example, creditors have to seek out
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their debtors, etc.. At other levels of African society, those with means
and those with political or religious position are definitely advantaged,
but such matters are outside the consideration of the personal financial
matters which are in focus in this study. In the capitalist West, the gen-
eral, built-in bias favors those with means; the poor are usually disadvan-
taged economically and legally. Progressive, liberal, and socialistic gov-
ernments seek to change this imbalance by instituting various mecha-
nisms for income redistribution or at least a rearrangement of economic
opportunities.
Debt Strategies
57. When an African has a need for money or some
good, the normal and acceptable way to get it is
to ask for it from a relative, friend or acquaint-
ance who has it.
57W. Westerners highly value independence. Asking
someone for money or some thing is considered
demeaning. To do so would normally indicate
personal failure on their part.
58. Old debts are forgotten and are not expected to
be repaid, neither by the debtor nor by the lender.
59. There is a strong sense in which people WANT to
be owed money by their friends.
60. There is some sense in which people WANT to be
without money so that they can more easily re-
fuse a request for a loan.
61. The unwritten rules governing the loaning and
sharing of money and goods, and the extreme so-
cial pressure on individuals to conform to these
rules or face sanctions, serve as leveling mecha-
nisms to keep people from getting ahead of oth-
ers.
62. The value of a development project is not to be
measured by its long-term success.
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Repayment of Loans
63. A loan is eligible to be repaid when the creditor’s
need becomes greater than the debtor's need.
64. The repayment of loans is a subjective matter in-
volving the weighing of social, economic, and
time factors.
64W. For a Westerner, the repayment of a loan is due
“objectively” on the terms agreed upon when the
loan was made.
65. The collection of debts is primarily the responsi-
bility of creditors, not of borrowers to volunteer
payments.
65W. The repayment of loans and the payment of
rents, are responsibilities of borrowers and rent-
ers.
66. Many people live with outstanding debts that
they never expect to repay.
Risks
67. The risk of a loan not being paid back is largely
assumed by the lender.
67W. For a Westerner, the borrower assumes the risk
of repaying a loan.
68. The use of the word “loan” when requesting
money from someone is often a euphemism for
“gift.”
69. Loans of goods or things are tantamount to gifts.
70. The response, “No,” to a request for money, a
loan, or a material object, is understood as an in-
sult, indifference to need, a lack of respect, or a
sign of rejection of the petitioner.
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70W. The simple response, “No,” is meant to tell the
petitioner in the most economic terms possible
that the request is denied, for whatever reason. It
is an immediate response that gets to the heart
of the matter without wasting the time of either
the petitioner or the potential giver.

Chapter 7. BUSINESS MATTERS

Introduction. Reference was made in the section “Use of Re-

sources” to a certain African ambivalence toward money. It can also be
said that many Africans have misgivings about “business.” Business has
historical and emotional ties to foreign intrusions into Africa, to the
growth of cities, to the unbridled quest for profits, and to the loss of tra-
ditional life and values. The words of the Cameroonian writer, Jean-Marc
Ela, eloquently describe the attitude:
… for the African, the rustic village is a place of security that comes
from being rooted in a homogenous, fissureless, world. The move to
the city marks the end of the world. It marks the collapse of the veri-
ties of existence and the rupture with all community ties to tradi-
tional life. The city is where youth are lost, exposed to all the dan-
gers and temptations of the “corrupt” world that is in contact with
“civilization.” When all is said and done, the urbanization of Afri-
cans brings about a detachment from traditional society and commu-
nity and a rejection of the past way of life Deprived of participation
in his rituals, having abandoned his ancestral beliefs and practices,
the African is but a disoriented city-dweller. He is an ‘anonymous
individual, available, even while keeping up his guard. He often lives
as a single man, precariously attached to a scrap of kinship or to a
group of comrades. He lives isolated among strangers, disoriented by
the mixture of customs, the unfamiliar way of life, and the many
temptations.
For the Western reader a few other introductory notes are
needed:
“Business” is very much connected to social issues. Business and so-
cial relations are not separate compartments of life in Africa.

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 At least to a Westerner, African business culture seems less direct or
factual, less explicit about certain problems, overly diplomatic in
telling customers what they supposedly want to hear, and less forth-
coming about problems.
Lastly, business in Africa is a reflection of economies that are often
less tuned to competitive market conditions than is typical in the
West.
71. Before attempting to do business with an Afri-
can, it is essential to establish at least a minimal
personal basis for carrying on the transaction.
72. The relationship between a seller and buyer may
well affect the price asked and the price paid for
a good or a service.
73. Bargaining for a better “deal” in ANY transaction
involves important social as well as economic
factors.
74. Employers are expected by society and even by
governments to provide advances to employees
in certain family situations and for certain holi-
days.
Negotiating
75. Final payment is final settlement; any subse-
quent business or adjustment is considered to be
a new transaction.
76. Any financial matter is subject to re-negotiation
until final settlement; that is, until final payment
is offered and accepted.
77. A request for money from a government func-
tionary or other provider of services, may be a re-
quest for a “pre-tip” rather than for a bribe.

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Business Strategies
78. Many people will choose a sure and immediate
small benefit to a potentially larger future benefit
if the future benefit is at all doubtful and if it re-
quires more “input,” such as the spending of
money or time.
79. People tend to take the immediate, quasi-legal or
cheaper solutions in dealing with business mat-
ters, rather than deal with delays, technicalities
or more expensive solutions.
80. When an occasion provides the opportunity to
make a large profit, it is typically seized upon.
There is little concept of a “reasonable” or “just”
or “ethical” price, or of “price gouging;” rather,
the accepted practice is to charge whatever the
buyer will pay.
81. Inaction or delay in carrying out a matter may
constitute a well-considered, non-verbalized mes-
sage, and not just be the result of mere inaction,
inertia, or delay caused by unforeseen events.
Handling Problems
82. Once money is exchanged in a business transac-
tion there is very limited recourse in case of mis-
takes, damaged merchandise, breakdown, not
meeting contractual stipulations, etc.
83. When a problem is encountered in trying to com-
plete or carry through with a transaction involv-
ing finances or other matters, the problem will
seldom be clearly admitted at the outset, but will
typically only be revealed over a period of time.

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83W. For a Westerner it is very frustrating to have
Africans appear to be unclear, indirect and unin-
formative.
84. When a customer is told that an ordered article
or service will be ready on a specified time or
date, it is unlikely to be ready at that time.
84W. The Western customer expects to be given a
“reasonable” date, and that barring extenuating
or unusual circumstances, the thing or service
will be ready as specified. Consequently, when it
is not, the Westerner considers the service pro-
vider to be unreliable or even untrustworthy.
85. Admitting to a personal lack of knowledge or re-
sources, or admitting to personal shortcomings
are perceived as weaknesses and are avoided if
at all possible.
The Voice of Experience
86. The amount shown on a receipt (facture, in
French) may not correspond with the amount paid
for goods or services.
87. Change is frequently a problem in business
transactions.
88. Having the correct amount of money for a busi-
ness transaction is the responsibility of the
buyer; it is not the seller’s responsibility to pro-
vide change.
89. When giving a tip to several people, e.g., bag-
gage handlers at an airport, the donor should ap-
portion it out. Giving a lump sum to one person
expecting him to divvy it up with the others, very
often does not work.

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90. People of all cultures act logically unless they
are mentally retarded or mentally disturbed.
Summary.
The purpose behind the formulation and discussion of these princi-
ples has been to come to a better understanding of certain aspects of the
domain of personal finances in African culture. No judgment is intended,
no criticism is implied, and no claim is made as to what, if anything,
should be changed. But in any case, whenever social change is desired, a
first step is always coming to an understanding of the facts, of what is
going on in the culture. The primary goal has been to help Westerners
living in Africa understand how personal finances seem to one Westerner
to be managed.

© SIL 2001

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