IF managed well, stokvels could change Mzansi people’s fortunes in a big way.
This informal way of saving could help boost the economy.
With over 11 million South Africans being members of stokvels, a total of R44 billion is collectively saved in 820 000 stokvels in the country annually.
The National Stokvel Association of South Africa reported that the stokvel market is worth more than some of big Mzansi businesses.
Gauteng and Limpopo have more stokvels followed closely by North West and KZ.
According to market research company African Response, 41% of the stokvels are banked and this has helped bring more Mzansi people into banking.
“Stokvel members are already savers, so the solutions we offer them are a genuine entry into the formal financial market,” she said.
All these four provinces make up 70% account for 70% of local stokvels.
From its own research, Nedbank indicated that the most popular types of stokvel are savings, grocery and burial societies.
The bank said two-thirds of grocery stokvels do bulk purchases from various retailers and wholesalers once a year in the fourth quarter.
In line with this, the Nedbank Stokvel account provides discounts of up to 10% on groceries and school supplies at leading retailers, with R551 000 worth of Shoprite vouchers.
Since inception two years ago, Nedbank’s Stokvel account has already attracted more than 3 541 account-holders and has insured 88 900 lives through its innovative burial cover solution.
“This demonstrates that informal savings groups are ready to enter the formal financial market, provided they can see the benefits,” said Sisa Cikido from Nedbank.
She said by helping stokvel members to use their existing savings to grow more wealth, Mzansi’s economy could change for better.
