Stokvels and burial societies come in from the cold

“South Africa’s stokvels have grown into a very important and relevant sector of the economy,” says Thembisa Mapukata, general manager of Old Mutual’s Foundation Market. “The statistics speak for themselves: there are 8,6m stokvel members in South Africa today, which means more than 23% of South African adults belong to a stokvel, and their total savings are worth an estimated R44bn.”

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Old Mutual aims to help bridge the gap between the informal economy and the formal economy. “Burial societies are not always aware of the formal channels and tailored offerings that are available for them. The indaba gives them the opportunity to ask questions and find out more about the benefits,” says Mapukata.

“The benefits of formalised channels of saving include the opportunity to earn interest, greater transparency and legal protection. Through an indaba in various communities, we’re able to share with members how their hard-earned money can grow safely and securely, and also make a positive contribution towards the country’s economy. Strong nations with healthy, inclusive economies are built on the savings of their citizens.”

Stokvels can also improve their efficiencies through the cloud technology that a large financial institution can provide. For example, there are digital platforms which automatically capture new investments, reflect these instantly and calculate each member’s investment and share in the stokvel.

Next stops for the indaba include Polokwane, Mafikeng and Sebokeng.