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Invest in JSE, stokvels told

INVESTMENT SOLUTIONS: Members of stokvels can take advantage of several investment opportunities to invest their savings and make them grow Photo: Eye Ubiquitous/ Getty Images
INVESTMENT SOLUTIONS: Members of stokvels can take advantage of several investment opportunities to invest their savings and make them grow Photo: Eye Ubiquitous/ Getty Images

Stokvel money can be used to buy shares in the Johannesburg Stock Exchange (JSE).

This is one of the ideas being shared at the Stokvel and Burial Societies Indaba, a concept that was started last year by entrepreneur Thabiso Masudubele.

The indaba is a financial literacy initiative which seeks to encourage people to use funds generated through their stokvels for long-term investments, including buying shares from JSE-listed companies.

This weekend Limpopo hosted the event which has so far been introduced in two other provinces, North West and Gauteng.

The indaba, which includes free workshops, is a partnership between Tyvision Media, the JSE and other financial institutions.

Masudubele said the idea was to educate people on the different ways in which they can invest their funds in order to see growth.

He said although the stokvels and burial society industry was said to be contributing R44-billion to the country's economy, the people participating in them had no information on how to make their money work in their favour.

Masudubele said people in the lower LSM band contributed massively towards the economy but that they are being shut out from information that could help them break out of the poverty cycle.

He said it was burial societies and stokvels that made it possible for people to educate their children and raise their families, but urged that people should have the confidence to grow their savings.

"It bleeds my heart to see our people with such low confidence. Don't be intimidated by the JSE," Masudubele said.

Martha Makitla Masegela from GaMabotja, a village outside Polokwane, attended the workshop. She said she started a savings scheme with 21 relatives about three years ago to assist each other with funerals and weddings.

Masegela said each member contributed R130 every month.

"With this money we are able to buy groceries and other items that we might need when there is a wedding or a funeral," she said.

Masegela said she was thrilled to hear about investment opportunities and would share them with her relatives.

Head of marketing at the JSE, Mpho Ledwaba, believes people should strive to own a piece of the wealth generated by listed companies. He said people should get in touch with a stock broker to seek advice on how to invest funds.

mahopoz@sowetan.co.za

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