How stokvels are empowering women entrepreneurs

CREATING generational wealth requires the discipline to save consistently and the insight to invest wisely.

- PALESA LENGOLO

Even small amounts set aside over the long term can improve the financial well-being of multiple generations. On paper, these principles may seem straightforward to apply, but in a South African context, generational wealth creation is challenging.

Due to the country’s underperforming economy, rising consumer inflation, existing debt, and financial hardship, many South Africans are struggling to cover daily essentials with their disposable income, such as food and utilities. Consequently, South Africa’s Household Saving Rate decreased to -1,20 percent at the beginning of 2025. Compared to the global average of 10%, South Africa has one of the worst savings rates in the world.

However, the global savings rate is calculated with national accounting standards based on global practices set by international organisations, such as the World Bank. While a good indicator of South African households’ formalised savings, these statistics exclude a unique and inherently South African savings and investment tradition that is deeply embedded in our history and culture: stokvels.