BUSINESS
Stokvel Feature
StokvelS
MEs S inance F Potential Source to
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outh Africa is facing serious socio-economic challenges. Poverty, unemployment and economic disparity due to low education and skills levels make it difficult for many to participate in the mainstream economy. This is also the reason many people resort to start Small, Medium and Micro Enterprises (SMMEs) to make a living, however, obtaining start-up and working capital remains a serious challenge to emerging and potential entrepreneurs. The University of South Africa’s Akwasi Arko-Achemfuor says township people can use the traditional saving scheme commonly known as stokvels to finance their start-up enterprises. A study conducted by Old Mutual found out that almost all the savings from stokvels are used for domestic consumption and buying semidurable goods and other household expenditures. Arko-Achemfuor says the funds can be invested in SMME activities because there is a high demand for start-up and working capital for SMME activities which the financial institutions are unwilling or unable to supply. He says government, nongovernmental organisations and development agencies interested
in entrepreneurship should come together to embark on educational campaigns about saving. “People need to be educated on how some of the money generated from the stokvel system can be used as a source of start-up and working capital for entrepreneurship. Stokvel groups must be encouraged to invest part of their savings in entrepreneurial activities for individuals and groups.” After he concluded his research in stokvel patterns, Arko-Achemfuor said stokvel groups and individual members indicated to him that they have not considered their savings as a source of start-up and working capital. “All the groups sought advice on how this can be done and where they could possibly invest part of their savings”, he said. Stokvel Consultant Busi Skenjana through her company, BSK Marketing, says her work is to unlock strategic partnerships between stokvels, private and public sectors. She has developed a unique brand activation concept in which brands are able to tap into the stokvel markets through their monthly meetings and events such as weddings and funerals.
Skenjana helped Kemano Investment, previously a traditional saving stokvel, to buy a property in Kruger Park where the group now runs their hospitality and tourism business and their property is fully paid up. She advised that stokvels can collectively play a role in the tourism sector through supplying other products such as linen. Through the consultation of Skenjana, the Kliptown Helping Hands, which was formed 25 years ago, was able to invest a total of R100 000 on the Johannesburg Stock Exchange market. “This is a group of 15 old women from Kliptown township in Soweto”, says Skenjana. The Sweet Harmony is a financial service co-operative and after Skenjana held workshops with the group, they secured a loan from the Rural Housing Fund and have upgraded their homes which were previously RDP houses. Skenjana says her special interest is to support stokvels and convert them into co-operatives adding that stokvels have potential to create wealth and must not only focus on short-term savings. www.spotongmag.co.za
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