JOHANNESBURG – A total of R44 billion is collectively saved in 820 000 stokvels in South Africa annually, with more than 11 million South Africans being members of stokvels, according to Nedbank research.
The bank stated that if harnessed correctly, stokvel’s could be the driver that South Africa needs to significantly enhance discretionary savings levels to bolster the economy.
A stokvel is a savings group to which members regularly contribute an agreed amount. The group then decides on how that money is shared, whether it is a monthly pay-out or invested and shared at the end of the year.
According to the National Stokvel Association of South Africa, the stokvel market was worth more than some of South Africa’s largest businesses. By geographic spread, provinces where the country’s top savers reside, Gauteng was the top ranked followed closely by Limpopo. Together with North West and KwaZulu-Natal, these four provinces accounted for 70 percent of the stokvels in the country.
Data from research conducted by Nedbank indicated that the most popular types of stokvel are savings stokvels, grocery stokvels and burial societies. “Two-thirds of grocery stokvels make bulk purchases from various retailers and wholesalers once a year in quarter four.”