United we feast, divided we starve
From cash-strapped consumers bonding to stock their pantries economically to yummy mummies wanting to fund topnotch toiletries and spa retreats, stokvels are an increasingly popular savings strategy.
“It’s no secret that South Africans are struggling with rising food prices. And with just a few days until the end of the year, many are seeking ways to enhance their holiday experience by ensuring they have enough food in their cupboards and are using stokvels to thrive in tough times,” said Mpudi Maubane, spokesperson for the Spar Group.
The National Stokvel Association of South Africa (Nasasa) defines a stokvel as a type of credit union in which a group of people enter an agreement to contribute a fixed amount of money to a common pool weekly, fortnightly or monthly.
Nasasa said the purpose of a stokvel is generally decided by members and could take different forms. In rotation stokvels members contribute money to the pool and receive a lump sum on a rotational basis like savings clubs. Grocery stokvels save the money and at the end of the year, the peak of the stokvel buying season, they make bulk deal purchases from outlets geared for this and divide the goods among members.
Cape Town chef Della Mdelisto manages a few different stokvels and jokes that she has switched chopping onions in favour of seeking investment opportunities. Her portfolios have done so well that she has been invited to speak at investment seminars.
Under her Isiqalo Sobulumko Savings Club banner, Mdelitso runs schemes ranging from R350-a-month savings policies to longterm
“generational wealth building schemes” that invest in property and other options under big names such as Allan Gray or Sygnia. Her R500-a-month-for-threeyears scheme includes a funeral policy that can be paid out to the family of any member who suffers a bereavement.
Asked why stokvels appear to be predominantly the domain of black women, Mdelisto said South Africans of all ages, races and genders are involved in these types of schemes, but some are reluctant to label them as stokvels.
“Even Avbob that was started years ago by white men it was basically a stokvel scheme and look where it is today.”
She said her smaller savings scheme members look forward to payouts. There are back-to-school policies and another shortterm plan costing R350 a month in which members get their money back with interest and dividends in the second week of January. “People love those because there is now money to buy school uniforms and stationery and pay fees. Or for those in trouble, it’ sa nice payout because we all know January is a long month with 42 days.”
For Pertunia Bopabe, a small idea with one other person worked out well.
“I joined a cow stokvel. Another person and I contributed R400 each monthly. The cow cost us R9,000 and we shared all the meat. Now I am set for the festive season and Januworry-proofed,” she said.
Netshilaphala Sedzie is part of a group of 10. They each contributed R1,200 a month for 10 months and did a huge bulk-buying shop on Black Friday; now Sedzie has enough non-perishable staple groceries to last her until November 2024.
“I’ve been doing this for six years. It works for me,” she said.
Massmart senior vice-president for corporate affairs Brian Leroni said the retail giant catered specifically for stokvels.
“Due to our bulk offering and preferential pricing, over 25,000 stokvel groups spend their accumulated savings at Massmart’s Makro and Cash & Carry stores,” he said.
“Our stores prioritise continuous communication with these groups, including conducting annual research that ensures that deals on the most meaningful products are being sourced.”
Leroni said about 250 products across the dry groceries, fresh food and personal hygiene categories are offered to the stokvels at a discount.
“Our stokvel customers also enjoy access to a range of activations throughout the year which include in-store stokvel parties, competitions, product samples from suppliers, and additional weekday discounts.”
Vanesha Palani, financial management executive at Nedbank, said the end of the year is generally regarded as stokvel season.
“This means that millions of people will be getting the money back that they have been saving in their stokvel all year and they need to remember criminals also know this and will be looking for ways to steal it,” she said.
She warned stokvel leaders to pay out as little as possible in cash and rather disperse the funds by electronic transfer directly into members’ accounts. This, she said, eliminates risks involved with drawing large sums of cash from the bank.
Palani advised stokvel members wanting to withdraw from an ATM to avoid machines in high-risk areas and not to transact at night.
“Always scan your surroundings for suspicious-looking individuals, have your card ready when you get to the ATM and never let anyone distract you during your transaction,” she said, suggesting small amounts be taken over a few days rather than one large withdrawal.
Maubane said stokvels are a successful strategy for consumers navigating high food costs. “Ubuntu is rooted in the belief that we are all interconnected, and we can achieve great things when we support one another. The concept is finding new life in the growing number of grocery stokvels and community-based savings clubs shopping in Spar stores.
“Stokvels help participants stick to a budget by planning their purchases. This prevents overspending and ensures that money is allocated efficiently.”