Africans have recently introduced a new motto into their lives. It says "Charge it!" This means that credit card market in Africa is getting more and more mature. Small wonder! Credit card issuers are very keen in entering new promising markets. African market is the very same.
What does it mean to African people? Some say it will improve the economic situation: make it more transparent, change buying behavior of people and raise standard of living. But others assure that this modern tendency of taking money from banks will destroy the society and ruin old, traditional ways. As always truth is in between.
Cash has always been king in Africa. Want to buy a car? Save enough money, otherwise borrow from relatives or even from your community. The situation is changing. It is credit boom now in Africa. For example last year in Kenya there were issued 500,000 credit card offers compared with 100,000 the year before. This is a big leap, but still not enough for the population of over 31 million.
Economists are sure that credit will improve the country's economic situation. It will become more transparent. Credit may also stop the corruption by eliminating use of untraceable cash. Credit cards will give people opportunity to buy things when they need them, not waiting until they save enough money. All these will have positive impact on life in general.
Katherine Woody used to be an ordinary African working mum before she made a credit card application. Now she says that she thoroughly enjoys buying gas, grocery and paying her other bills with a credit card. She said she feels more independent, more successful. Credit card symbolizes new life style. It is like working 12-14 hours a day for a fast-growing and modern company and hanging out with mobile and fashionable friends.
Africans, who know their credit eligibility for a plastic, are becoming more and more like westerners. They are forgetting their ancestors' old ways. They have been moving away from some precious for their culture traditions as, for example, the tradition of support groups which are called kiamas. Kiamas are the same lending organizations, but they do not charge high interest rates and they do not care about your good credit score. The only thing that matters is relations with people who surround you, whom you can trust and who will come and help you in difficult situations.
There is something else to be added to the positive influence of credit cards. In the country with such a high level of street crime as Africa it is very convenient not carry cash, but a credit card. Which is more, credit cards give you a clear picture of your monthly spending unlike cash which just slips through your fingers.
Credit card offers mean to bring only benefits to the society. What is good - a bank or a kiama; being independent or rely on each other? These are personal questions which will be answered by millions of Africans in the coming years. Everyone will have to make a choice.
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