BUSINESS Stokvels
O T D E T I M I L T O N STOKVELS
E L P O E P L A R POOR, RU
can be any unexpected or unplanned situation where money will be needed urgently, such as illness or a death in a family. In such unfortunate cases the affected member will be loaned the sum of money. If however, an unfortunate circumstance does not arise during the year, the money will be shared among the members at the end of the year. Lefutso also says that if a member does not have money to make her monthly contribution, that member can request assistance from other members to loan her the monthly contribution amount, which he/she will be required to pay back. “This is how we help each other in stokvels,” says Lefutso, who bought all her furniture with the money she got from the stokvel. “You will never be left alone, we boost each other.”
Members of the Rea Bereka stokvel say trust and collectiveness are the core of their stokvel.
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ollectiveness has been the core component of African culture since the beginning of time, people have been concerned with the dignity and wellbeing of family and community, especially the most vulnerable among them. That collectiveness is how Stokvels came into existence and how they have grown to become a stable platform where mutual financial assistance, as well as social and entertainment needs of communities, are provided for. According to a study conducted by the research company, African Response, last year there were 811 830 stokvels and 11.4 million Stokvel members in South Africa the total estimated value of stokvels was R44 billion, with Gauteng having the highest penetration. The survey revealed that the most popular types of stokvels are Savings and Burial Societies where each stokvel has an average of 27 members. Savings stokvels are mostly comprised of urban members and each contributes a fixed amount of money to a common pool on a weekly, fortnightly or monthly
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basis during their scheduled meetings. Money is drawn either in rotation or when a particular need or occasion arises. Most stokvels have savings bank accounts where contributions are deposited and then accumulated. Meetings are the most common form of communication with members and are often held at a member’s home, a local restaurant or even in the outdoors such as a nearby park or similar venue. Research conducted by the University of Cape Town’s Unilever Institute of Strategic Marketing, discovered that Stokvels are not necessarily limited to only poor or rural people. In fact, black executives in urban areas belong to highly sophisticated stokvels that generate significant income. Ouma Lefutso of Diepkloof Zone 1 in Soweto is employed as a domestic worker and says she has been a member of the Jazzville Ladies Club Stokvel for the past 10-years, where 15 main members contribute R100 every month into their savings account. Lefutso says the idea is to put the money aside for a “rainy day”, which
Dolly Sogiba, a domestic worker and mother of two, was once living below the poverty line until she decided to join a local stokvel — a decision, she says, that changed her life. “Before I joined a stokvel there were many things that I couldn’t afford and I used to struggle to pay school fees and buy school uniforms for my two children. But my life changed after I joined stokvel because even though I make little money I am now able to afford groceries and school fees.” Sogiba’s stokvel also consists of 15 members and every week all of them contribute R200, which is paid to one member as a total of R3000 and the payouts rotate among the members throughout the year. “This is a considerable amount of money that goes a long way to supplement our income. I will never stop participating in stokvels,” says Sogiba. Besides the financial benefits, stokvels are also a good way for people to support each other with other issues such as mental or emotional and regular Stokvel meetings have become a social highlight in townships.
