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SA stokvels worth around R25bn

By Sapa | 2014-05-15 13:30:32.0 | COMMENTS [ 12 ]

The survey, taken from 3750 interviews, found that 23 percent of the population belonged to some 421,000 stokvels.

Stokvels are worth an estimated R25 billion in South Africa, according to a survey by market research company African Response released on Thursday.

The survey, taken from 3750 interviews, found that 23 percent of the population belonged to some 421,000 stokvels.

A stokvel is a group savings scheme, usually run by trusted friends or co-workers. Members contribute a set amount each month and either one member gets the total each month to spend on a personal need, or it is invested and divided among members at an agreed time.

African Response managing director Mamapudi Nkgadima said burial societies were the most common type of stokvel.

"It is a fact that many spend fortunes preparing for death in their community or family, and limited resources towards saving or investment," she said.

"Funerals, or the prospect of a funeral, is an expensive issue in the average stokvel member's life."

The next biggest stokvels were for savings and groceries.

Around 31 people belonged to an average stokvel, although membership could be as high as 100 people in burial stokvels.

The average contribution for a burial stokvel was R134 per member per month, compared to other stokvel types at R190 a month.

"Less than half of what stokvels collect -- in their entirety -- gets saved or invested and this is an area that needs to be looked at," Nkgadima said.

"Stokvel members should be encouraged to explore value adding ways to strengthen their collective savings."

The results were taken from face-to-face interviews with a nationally representative sample between February and April.

COMMENTS [ 12 ]

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s.cold

ZAKA KENGATA MO MZANSI,, and come here to claim ukuthi ni poor

2014-05-15 13:38:53.0 | 1 replies

Vere

BISA knew all about this and did something about it read all about it bisasa.org

2014-05-16 10:15:15.0 | 0 replies

Papage

Just leave our stokvels as they are, it is a Black thin, we grew up in stokvels and now i am a big family man. I have policies, but still i belong to a stokvel, it is not only about money or burial, much more, you feel a sense of beloging, at times we discuss family issues and we get answers. We dont want SARS to target our stokvels, it is a black thin, I know where you are heading by making the value known to everyone.

2014-05-15 13:40:49.0 | 0 replies

Mjove-a-hlanye

Eintlik Sowetan what is the purpose of writing about this??? Where are the real serious issues???

2014-05-15 13:41:30.0 | 0 replies

Bohlale1

In few months there will be stovel tax to be introduced I am telling you....no story here....nxa

2014-05-15 13:48:25.0 | 0 replies

Grid_lock

where is MommaC? just need a partner to go do some breading.

2014-05-15 14:02:34.0 | 0 replies

Buc4life

If stokvels are worth R25bn, surely that means something for our economy!!!! There is a story here, A big story.

2014-05-15 14:29:05.0 | 0 replies

EL-Macho

Semantics, semantics, semantics. Stokvel and burial society similar? Actually, what exactly is a stokvel? What is the origin of the word stockvel? Refering to group/community saving schemes whereby stokvel is but just one of them?

2014-05-15 14:48:03.0 | 0 replies

Diago

Proudly South African Ubuntu in action.

2014-05-15 15:04:14.0 | 0 replies

Kelakaleo

Proudly South African product. I am a member of 4 stokvels already. Saving for Holiday Stokvel, Grocery Stokvel, White Wedding Stokvel and Burial Stokvel

2014-05-15 15:27:55.0 | 1 replies

Nice1

But what if you dont get married?

2014-05-16 07:09:44.0 | 0 replies

SebolaNtimetseAdikateMoketla

And abelungu want to do what with this information- our information. Hands off!!

2014-05-15 16:42:07.0 | 0 replies
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