How an equb works, and how to run one fairly
An equb is a rotating savings group common in Ethiopia and Eritrea, and among Ethiopian and Eritrean communities in the United States, the UK, Canada, Sweden, Norway and the Gulf. In Amharic it is written እቁብ (also ዕቁብ), and in English you will see it spelled equb, ekub or iqub. Abroad, people often call it a habesha equb. Each member pays the same amount on a fixed schedule, and each round one member takes the whole pot, until everyone has had their turn.
In English, an equb is a rotating savings and credit association (ROSCA): an informal savings club where members take turns receiving the pot. English has no single word for it, so Ethiopians and Eritreans abroad usually keep the name equb or ekub.
There is no interest, and nobody wins or loses. A member with an early turn (ተራ, tera) gets a lump sum up front and pays it back through later contributions; a member with a late turn is simply saving. Groups save together for things like a wedding, school fees or a pilgrimage.
How does an equb work?
- An organizer, the ሰብሳቢ (sebsabi), brings together people who know each other, usually relatives, neighbours, co-workers or friends. The group agrees the amount, how often everyone pays, for example every week or every month, and how many rounds there will be.
- Each member, an እቁብተኛ (equbtegna), gets a turn. Many equbs decide the order by drawing lots, the ዕጣ (eta).
- Every round each member pays their contribution, the መዋጮ (mewacho), to the sebsabi in cash, by bank transfer or by mobile money.
- The sebsabi hands the whole pot to the member whose turn it is, and the equb ends when every member has taken it once.
Traditionally the sebsabi keeps everything in a notebook, the የእቁብ ደብተር (equb debter): who paid each round, who has taken the pot and who is next.
How is the order of turns decided?
Many equbs draw lots for the order of turns. Others agree the order together, for example giving an early turn to a member with a wedding or another big expense coming up. Some let two members swap turns when both agree. The method matters less than agreeing it before anyone pays and writing down who has which turn. Complaints that a draw “wasn’t fair”, or that the same people keep ending up in the last rounds, are a familiar source of friction.
What rules does an equb agree on?
Many equbs write their rules down, often as a እቁብ መተዳደሪያ ደንብ (the equb’s bylaws). The rules can cover the amount, the payment dates, what happens when someone pays late and what happens if a member leaves. Some groups also ask a member who takes the pot early to name a guarantor, a ዋስ (was), who covers the remaining contributions if that member stops paying.
The sebsabi runs the equb but has no special rights over the money compared with the other members; the job is to collect, hand over and keep the record honest. If you need to know what a written equb agreement means in law, ask a lawyer where you live.
Is an equb the same as an idir?
No. An idir (እድር) is a funeral and mutual-aid society that supports members through hard times. An equb is a savings rotation in which every member takes the pot once. The two are often mentioned together, but they work differently, and this guide is only about equb.
How does an equb work abroad?
Ethiopian and Eritrean communities abroad run equbs too, often among relatives, friends or co-workers. Members may live far apart, so they often pay by bank transfer instead of handing cash to the sebsabi, and they keep in touch in a Telegram or WhatsApp group. In Ethiopia itself, Telegram is the messenger most people use. Either way, payments end up spread across bank apps, messages and the sebsabi’s notebook, so it helps to agree one amount, one payment day and one shared record.
What goes wrong in an equb?
- A member stops paying after taking the pot. Someone moves abroad, falls ill or simply can’t keep up, and the members with later turns lose out. This is why equbs start with people who know each other, and why some ask for a guarantor.
- Arguments about the draw. If members didn’t see the draw, or it can’t be checked later, people with late turns may feel the order was set against them.
- A lost or disputed notebook. With a paper debter or a chat thread, it is hard to prove months later who paid which round.
- Handing the money to a company. Some digital equb services collect and hold members’ money, and some users have complained that they struggled to get it back. Be careful, too, with schemes that promise a car or a house in return for a large registration fee.
How do you run an equb with Savings Circle?
- Create the group. Choose a name type such as “Savings circle” and give the group any name you like, for example “Office equb”. Then set what each person pays per round and the schedule.
- Add members from your contacts. They don’t install anything.
- Set the order. Run a random draw in front of everyone, or enter the order you agreed. A random draw saves its seed, so anyone can check later that it wasn’t changed. Members can ask to swap turns, and the swap is recorded too.
- Record payments as they come in, by cash, bank or mobile money, with a screenshot as proof if you like. It works offline and syncs later.
- Remind the late ones. One tap opens Telegram, WhatsApp or SMS with a polite message.
- Record each payout. Every entry is dated. A correction is added as a new entry, and the original stays in the history. Receipts and statements show each member what they have paid.
Think of it as your equb debter on your phone, with a web app for when you work on a computer. Savings Circle never holds or moves money. Members pay the sebsabi the way they already do; the app is the shared record of who paid, who is next and what is owed.
Other names for the same idea
In Ethiopia and Eritrea it is an equb, ekub or እቁብ. In Somali communities the same system is a hagbad or ayuuto, and in Egypt and the Gulf a jam’iya. Elsewhere it is a committee in Pakistan and India, a tanda in Mexico, a susu in Ghana, a chama in Kenya, an arisan in Indonesia and a paluwagan in the Philippines. Economists call all of these rotating savings groups, or ROSCAs. Savings Circle works for any of them.
What is ekub?
Ekub, also spelled equb or iqub, is the Ethiopian and Eritrean word for a rotating savings group. In English it means a rotating savings and credit association: members pay the same amount on a fixed schedule, and each round one member takes the whole pot until everyone has had a turn.
Guides
- South Asia: committee, kameti, chit fund, bhishi, kitty party and samity
- Africa: susu, chama, ajo, adashe, equb, hagbad, stokvel, tontine, mukando and chilimba
- The Americas and the Caribbean: sou-sou, tanda, junta, lending circle and pardner
- Asia and the Pacific: arisan, paluwagan and hụi
- The Arab world: jam’iya