Alternative Currencies
Alternative Currencies in the Context of Regeneration: Driving Sustainable Development
Introduction
Alternative currencies are financial systems designed to complement traditional money, fostering local economies and promoting sustainable practices. These currencies can be powerful tools for regenerative communities, encouraging local trade, reducing reliance on external economic forces, and enhancing social cohesion. By aligning financial incentives with ecological and social goals, alternative currencies can play a crucial role in building resilient, regenerative societies.
What are Alternative Currencies?
Alternative currencies, also known as complementary currencies, are forms of money that operate alongside national currencies. They are often created to address specific economic, social, or environmental issues and can take various forms, including local currencies, digital currencies, and barter systems.
Benefits of Alternative Currencies for Regenerative Communities
1. Strengthening Local Economies: By encouraging spending within the community, alternative currencies help keep wealth circulating locally, supporting small businesses and local producers.
2. Promoting Sustainability: Alternative currencies can be designed to reward sustainable practices, such as organic farming, renewable energy use, and waste reduction.
3. Enhancing Social Cohesion: These currencies often foster a sense of community and mutual support, as they are typically used within close-knit networks.
4. Reducing Dependence on External Economies: By creating a self-sustaining economic system, communities become less vulnerable to external economic fluctuations and crises.
Successful Examples of Alternative Currencies Globally
1. Bristol Pound (UK): The Bristol Pound is a local currency that can be used alongside the British Pound in the city of Bristol. It encourages residents to support local businesses, strengthening the local economy and reducing environmental impact.
2. BerkShares (USA): BerkShares is a local currency used in the Berkshire region of Massachusetts. It aims to promote local economic stability and sustainability by encouraging residents to shop at local businesses.
3. Chiemgauer (Germany): The Chiemgauer is a regional currency used in the Chiemgau region of Bavaria. It supports local businesses and community projects, with a portion of every transaction going to local charitable organizations.
4. WIR Bank (Switzerland): The WIR Bank operates a complementary currency system for small and medium-sized enterprises. It has been successful in stabilizing local economies during economic downturns by providing an alternative means of trade.
Success Stories in Africa
1. Bangla-Pesa (Kenya): Bangla-Pesa is a community currency used in the informal settlement of Bangladesh in Mombasa, Kenya. It has helped stabilize the local economy by providing a reliable means of exchange, fostering local trade, and reducing poverty.
2. Eco-Pesa (Kenya): Eco-Pesa was an alternative currency used in informal settlements in Kenya to encourage environmental conservation. Community members earned Eco-Pesa by participating in activities such as tree planting and waste management, which they could then spend on local goods and services.
3. eGoli (South Africa): eGoli is a digital complementary currency used in Johannesburg. It aims to support local businesses and create a more inclusive economy by providing a platform for barter and trade within the community.
Implementing Alternative Currencies in Regenerative Communities
1. Identify Community Needs: Assess the economic, social, and environmental needs of the community to design a currency system that addresses specific challenges.
2. Engage Stakeholders: Involve local businesses, residents, and community organizations in the planning and implementation process to ensure widespread acceptance and participation.
3. Design Incentives: Create incentives that align with regenerative goals, such as discounts for sustainable products or rewards for community service.
4. Ensure Transparency: Maintain clear and transparent records of currency issuance and transactions to build trust and accountability within the community.
5. Monitor and Adjust: Regularly evaluate the impact of the currency system and make necessary adjustments to enhance its effectiveness and sustainability.
Conclusion
Alternative currencies offer a promising approach to fostering sustainable development and resilience in regenerative communities. By promoting local trade, supporting sustainable practices, and enhancing social cohesion, these currencies can help build thriving, self-sustaining economies. Successful examples from around the world, including innovative initiatives in Africa, demonstrate the potential of alternative currencies to drive positive change and create more equitable and sustainable societies.
Here is a well-researched and SEO-enhancing addition you can paste at the bottom of your Alternative Currencies page. It provides more depth, reduces keyword density, and adds both global and African relevance:
Global Examples of Alternative Currencies
Around the world, communities have developed diverse local money systems to boost local economies, strengthen resilience, and support mutual aid networks. These systems vary from simple barter networks to complex digital tokens, each tailored to suit local needs and economic conditions.
LETS (Local Exchange Trading Systems)
–
Canada, Australia, UK
One of the earliest and most well-documented forms of community currencies, LETS originated in Canada and spread globally. In this system, participants trade goods and services using credits, not cash. The Comox Valley LETSystem in British Columbia, for example, has operated for decades, facilitating local trade and fostering community connection. More at: https://www.lets.net
Bristol Pound – United Kingdom
Launched in 2012, this city-based currency allowed people to spend at local businesses, keeping money circulating within Bristol. Though it has transitioned to a digital format, its impact on promoting localism and ethical businesses is still studied today. Read more: https://bristolpound.org
Sardex – Italy
In Sardinia, businesses created a regional credit system called Sardex, which enables companies to trade with each other using mutual credits rather than euros. It has become a powerful example of how a business-to-business currency can support SMEs in a struggling economy. Info: https://www.sardex.net
Ithaca Hours – USA
One of the earliest time-based currencies in modern history, Ithaca Hours in New York valued labour at one hour = one note. It helped stimulate local trade and was accepted by hundreds of local businesses. Though inactive now, it remains a model for new initiatives. Archive: https://www.ithacahours.org
BANCOR Protocol & Smart Tokens
On the digital side, protocols like Bancor allow decentralised exchange of tokens without requiring a central authority. While not a local currency per se, this opens doors for smart tokens that could anchor local economic systems. Explore: https://bancor.network
Chiemgauer – Germany
In southern Bavaria, a regional currency called the Chiemgauer is used by businesses and nonprofits. It includes a demurrage fee—encouraging circulation rather than hoarding—and supports local causes. It’s one of the longest-running regional currencies in Europe. Learn more: https://www.chiemgauer.info
African Innovations in Community Currencies
Africa is increasingly home to grassroots solutions designed to serve underserved communities with limited cash flow but strong social capital.
Sarafu Network – Kenya
Pioneered by Grassroots Economics and Will Ruddick, Sarafu is a mobile-based mutual credit system operating in informal settlements. Residents earn and spend Sarafu to buy food, services, or even pay school fees. It has reached over 50,000 users across Kenya. Website: https://www.grassrootseconomics.org
Mumbuca – Brazil (Inspiration for African Urban Areas)
Although not in Africa, the Brazilian town of Maricá has used a digital basic income system called Mumbuca, distributed via blockchain to its citizens. A similar concept could be trialled in urban Namibian settlements to ensure dignity and reduce dependency.
Ubuntu Wallets & Village Savings Groups – Southern Africa
Across rural Namibia, Zimbabwe, and Zambia, informal stokvels and village savings and loan associations (VSLAs) already function as micro-currencies. While not always tokenised, they provide a framework for trust and savings that can be formalised into complementary credit systems.
Potential in Namibia: Why Alternative Systems Matter
In Namibia, especially in informal settlements like Katutura or Havana, cash is often scarce, but needs are high. An alternative local value system—perhaps linked to hours worked in community gardens, childcare, or street cleaning—could transform neighbourhoods. In rural areas, cooperative farming groups could use labour-backed credit tokens or vouchers tied to harvests or mutual service.
As mobile phone penetration increases, so too does the potential for USSD-based mutual credit systems. These could be designed to operate even without smartphones, allowing goat herders in Kunene and fishermen in Erongo to participate in a shared value network.
Some ideas for Namibian pilots:
- Barter Credits for Surplus Harvest – linking rural producers with urban consumers
- School-Based Reward Tokens – for attendance, cleanup, or peer mentorship
- Community Care Points – earn tokens for helping elders, which can be redeemed for food or essentials
Further Resources
For those interested in learning more or starting their own initiative, consider these readings:
- “The Future of Money” by Bernard Lietaer – a foundational text exploring different monetary systems across time and geography.
- “Creating Wealth: Growing Local Economies with Local Currencies” by Gwendolyn Hallsmith and Bernard Lietaer – great for practical steps.
- “Reinventing Money” by Thomas H. Greco – excellent for understanding mutual credit and monetary reform.
Online platforms and toolkits:
- https://communitycurrencies.org – by Grassroots Economics
- https://openmoney.org – early pioneers in digital community currency systems
- https://fair.coop – explores global cooperative currency ideas and ecosystems
A Fable from Ongoma: The Town That Shared What It Had
Here’s a fictional story: In the dusty hills north of Okahandja, nestled between two dry rivers and a small mahangu field, lay the fictional town of Ongoma. It wasn’t on any official map, but the people who lived there knew it well—every goat path, every marula tree, every neighbour.
Life in Ongoma wasn’t easy. There was no bank, no supermarket, and for many months of the year, very little money. Yet there was food in some gardens, skills in many hands, and time in abundance. What was missing was a way to connect it all.
One day, an old schoolteacher named Mr. Kaujeua stood up at the community meeting under the camelthorn tree and said, “We don’t need more money. We need a better way to share what we already have.”
That was how the idea of the Ongoma Voucher System began.
The Idea That Sparked Change
Instead of trying to create a new currency, which would raise legal concerns and fears, Mr. Kaujeua proposed something simpler: a voucher system. Each voucher represented either a small unit of work (like one hour), a basket of food, or a service such as babysitting, fence repair, or tutoring.
They called them Ongo—short for Ongoma—and printed them on recycled paper, with a stamp and signature from the town elders. The rules were simple:
- You could earn Ongo by helping someone with a task.
- You could spend Ongo on anything someone else was willing to offer.
- You couldn’t exchange Ongo for Namibian Dollars or try to sell them.
This was not a new currency. It was simply a local promise system, backed by trust and work.
How It Worked
Mama Tileni earned 4 Ongo by helping to weed Uncle David’s maize patch. She used 2 of them to “pay” Joel the student to help her son with schoolwork. Joel then used those 2 Ongo to get a haircut from Maria, who later redeemed her 2 Ongo for a large bowl of spinach and firewood.
No cash was involved, but everyone got what they needed.
To keep it all organised, a ledger book was kept in the school’s storeroom and updated weekly. Later, a youth member who knew how to use a smartphone set up a WhatsApp group called “Ongoma Market,” where people could list offers and requests.
Some examples from the group included:
- Offering: goat milking in the mornings, 1 Ongo per session – Agnes
- Request: repair help for chicken coop – 3 Ongo available – Nico
- Offer: Basic herbal remedies – aloe vera ointment, 2 Ongo per jar – Dudu
The town found that even the elders who didn’t read well could participate. They were valued for their knowledge, stories, beadwork, and prayers. Teenagers offered to carry water, collect firewood, or cook for busy families.
Growing Impact
The system didn’t replace the Namibian Dollar. People still needed money for taxis, phone airtime, and school fees. But the Ongo voucher system bridged the gap when money was missing and people still had needs.
Over time, the market day became vibrant. A small green tent was set up on Saturdays where Ongo could be exchanged for produce, goods, and services. Some local farmers agreed to accept 50 percent of payment in Ongo and the rest in NAD. One of them said, “Even if I don’t get cash, I know I can use these to fix my fence or get help with my cows.”
A visitor from Okakarara came to see how Ongoma was managing so well during a season of drought and unemployment. After a day of observation, he said, “You haven’t created money—you’ve created movement.”
What We Can Learn from Ongoma
This fictional story shows what’s possible when vouchers are used to unlock the value already present in a community. While not legal tender, these paper promises can still be powerful tools for trade, dignity, and resilience.
Key points:
- Voucher systems are not replacements for national currency but complementary tools.
- They work especially well in rural or informal communities where trust is strong and cash flow is limited.
- Such systems reward time, care, skills, and mutual aid—not just consumption.
- They can reduce dependency on external aid and build local economic loops.
In real life, versions of this idea are being trialled in communities in Kenya (Sarafu), Cameroon (Grain de Sel), Brazil (Banco Palmas), and South Africa (Greyton Transition Town’s Talents system). Each one is shaped by local customs, leadership, and needs—but the principle remains the same: use what you have to get what you need.
