Secret of stokvels' success

COLLECTIVE: SAVING SYSTEM DEPENDS ON RELATIONSHIPS

- Ina Opperman

Stokvels remain successful as South Africa's most trusted community savings system because they are all about relationships, support and understanding.

The National Stokvel Association of South Africa estimates that over 11 million South Africans are members of a stokvel, which is about 40% of the adult population.

This shows that stokvels are a primary source of savings in a country with a poor savings culture.

South Africa's stokvel industry is worth about R50 billion and it continues to grow, but Rapule Mahlangu, head of associations and affinity groups at Metropolitan, said economic uncertainty has turned managing stokvels into a daunting task.

As a group savings platform, he said stokvel success demands a mental shift into human understanding and relationship management to succeed properly.