Stokvel is a type of credit union in which a group of people enter into an agreement to contribute a fixed amount of money to a shared pool weekly, fortnightly or monthly. It is a less formal way for people to save money in a trusted community.
Stokvels are estimated to have over 10 million members and are believed to be a R45 billion industry, highlighting the power of community. As these member-led formations continue to grow in developing countries, they also become more technologically advanced.
According to our 2023 Township CX Report survey, more than 50% of respondents are part of a Stokvel, and over 25% of them are part of more than one Stokvel. It seems that because unemployment and inflation levels are so high, township residents are looking to one another for help with saving money.
Sanelisiwe Nkuta, Head of Old Mutual’s Foundation Market, said, ” Stokvels have progressed in both the way they are perceived and how they operate. Stokvels are no longer used as vehicles for small savings and are increasingly being used, among other uses, as a lender to their members in difficult financial times.”
Thus, as we watch how the Stokvel community grows and inflation and unemployment levels increase, township residents are relying on one another to stay afloat.
To gain more insights on the Stokvel community, download the 2023 TCX Report.
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