Tag: stokvel

The growing trend of stokvels and the seasonal withdrawals during the festive season requires members to be vigilant and careful. Often, stokvels are formed at the start of the year to enable spending in December. As a result, we observe most withdrawals during this period.

Our data shows that 23% of their stokvel members are seniors. Additionally, 37% of stokvels have two or more senior members. This suggests that tradition is being passed down to younger generations. Seniors and youth often belong to the same stokvels. Group savings have historically served as collective savings vehicles. They help adults raise families and create communities of like-minded individuals. Senior citizens continue to embrace this culture while passing on knowledge and principles to younger generations.

The Corporation for Deposit Insurance (CODI) finally aligns South Africa with the rest of the G20. By guaranteeing cash deposits of up to R100,000 per qualifying depositor in the event of a bank collapse, this innovative new scheme has the potential to change South Africa’s banking landscape, which is currently dominated by the Big Five (FNB, Nedbank, Standard, Absa and Capitec).

As a testament to the resilience and dedication of South African stokvel savers, we reveal that its customers' stokvel net deposits have increased by 42%. Since November 2019, our stokvel customers have continually increased saving via a stokvel surpassing the R8.3 billion mark in total member contributions.

Stokvels are on the move: moving from villages to cities, from beneath mattresses into savings accounts and investment instruments. As they move and evolve, their potential for growth and their ability to create wealth increases.

Saving money is all about sticking to very strict budgets, sweating while crunching numbers, and skipping out on fun to get serious about your finances, right? Well, according to South Africans it doesn’t necessarily have to be. Savings goals don’t have to equate to life becoming all work and no play. 

There are roughly 810,000 active stokvel groups consisting of over 11 million South Africans, collecting an estimated R50 billion annually. Nearly 40% of South Africa’s adult population are members of a stokvel. Recently there has been an increase in illegal pyramid schemes or Ponzi schemes, which continue to pop up around South Africa.

Many of us would like to put money aside for saving and investing but struggle to remain committed and disciplined each month. Being part of a savings club is a great way to reach your financial goals. Saving can be difficult on your own, but South Africans have always been creative when it comes to solving problems. To help us get into the habit of regular saving, over 11.5 million of us have joined savings clubs and stokvels.

The South African economy has a secret weapon: stokvels. If harnessed correctly, investments in stokvels could significantly bolster the economy. The following statistics, provided by the National Stokvel Association of South Africa, are mind-blowing: at present there are 11.4 million South Africans who are members of stokvels; around R44 billion is pooled collectively by ordinary people in stokvels; and it is saved by 820,000 stokvels.

Stokvels have become the ultimate means for saving among many working adults in South Africa. Stokvels are found in many places: your work office, among church ladies, and even men are starting to use stokvels as a means to save. Although reasons for saving differ, the method remains the same.