Stokvels are found in many places: the workplace, among women in a church congregation, while men are also starting to use them as a way to save.
Although reasons for saving differ, the method remains the same. Members contribute a monthly or weekly fixed amount of money into a savings account, allowing participants to build towards lump-sum savings for any household or lifestyle needs.
According to research conducted by Nedbank, more than 11 million South Africans are members of stokvels, and a total of R44 billion is collectively saved in 820 000 stokvels across the country.
Stokvels make it easy to save as part of a collective, regardless of a person’s financial status as amounts are agreed upon within the group.