Unlocking power of stokvels

ADVICE: TURN SCHEMES INTO GENERATIONAL WEALTH, SAY EXPERTS

- Ina Opperman

Stokvels are a way of life for many South Africans and an integral part of the country's economic landscape.

These collective schemes are a phenomenon with immense potential to build generational wealth that must still be fully unlocked.

With millions of participating members and contribution and saving pools amounting to billions of rands, stokvels have the capability to transform the financial well-being of countless individuals and communities,.

But to do that, a mindset shift is needed, says Himal Parbhoo, CEO Retail Cash Investments at FNB.

"Stokvels have always been seen as mainly a collective savings vehicle," he says.

"They are groups where ordinary people pool their money and store it for when they need it one day. We believe that stokvels can and should be much more than just money storage schemes. They must evolve into powerful platforms for wealth creation."