[1] The CICM began work in Burundi in 1981 and 1982 to enable the formation of rural savings and loans cooperatives (COOPECs).
[2] Melchior Ndadaye, the future President of Burundi, directed the Coopératives d'Épargne et de Crédit in Gitega from 1986 until 1988.
[2] The Government of Burundi withdrew financial support in 1992 but continued to provide the premises housing the COOPECs.
To meet the requirements of that decree for itself and the affiliated COOPECs, FENACOBU applied for approval from the Bank of the Republic of Burundi (BRB), which it obtained on 1 March 2007.
The members work in a cooperative manner to collect savings and grant credits to low-income populations who cannot access the mainstream banking system.
[1] The reasons for this rule are that the COOPECs must have capital against which they can grant credit without resorting to external financing, and building up savings is seen as a process for members to learn how to handle money.
[10] COOPECs differ from traditional banks who offer competitive financial services while maximising return to shareholders.
The COOPECs deposit excess liquidity in the banks, in effect transferring resources from poor rural communities to more prosperous cities.