Stokvel indaba gives insight
Recent research indicates that these groups contribute to the economy significantly through their various accounts at financial institutions.
Tyvision Media will be hosting the “Stokvels” and Burial Societies Indaba 2016 Road Show in Limpopo, North West and Gauteng during the months of October and November 2016.
The main objective of the indaba is to create a platform for stakeholders, particularly ordinary members, to engage around forming solutions to their challenges.
The Indaba Road Show is in partnership with Old Mutual and the Johannesburg Stock Exchange (JSE).
“Stokvels” are a group of saving schemes that provide mutual financial assistance as well as social and entertainment needs.
These take different forms depending on the purpose of the scheme, ranging from burial “stokvels,” savings/money “stokvels” and groceries “stokvels” to investment “stokvels” and birthday celebration “stokvels”.
According to a survey undertaken by African Response[1], “stokvels” are a robust market in the area of traditional collective saving and are estimated to be worth some R44-billion. There are an estimated R8.6-million “stokvel” members in South Africa, which represents over 20 per cent of the local adult population and an estimated 421 000 “stokvels” in total.
The Indaba Road Show encourages ordinary South Africans to engage interactively with senior representatives of financial services organisations.
The indaba strives to empower members with information that will assist towards better decision making and participation in the economy through their “Stokvels” and Burial Societies.
Through its partnership with the JSE, the indaba will provide participants with information on how to participate in the buying and selling of shares on the stock exchange.
“Stokvels” and their members will have an opportunity to gain information on participating in the mainstream economy.
Mpho Ledwaba, head of marketing at the JSE, says, “Encouraging and driving an investment and saving culture is a key focus of the JSE’s strategy of making investment accessible to all South Africans.
The JSE is committed to help improve financial literacy and for some years now, we have run a number of initiatives to encourage South Africans to invest on the stock exchange.”
The indaba also aims to create a bridge between the “informal” economy as well as the mainstream economy, by holding sessions that deal with the workings of the economy in understandable language.
Stokvels, burial societies and their members should know how their premiums contribute to the financial well-being of major JSE-listed financial services companies. Members should be able to appreciate the link between the payment of their premiums and the financing of a project through a financial institution.
“We believe it is through hosting this annual Indaba, as well as using media platforms such as radio and television, that the ordinary man on the street can begin to appreciate the power they have when it comes to their money. They also need to be aware of ways in which their hard-earned money can create more value for them, and understand how their investment is making a contribution to the country’s economy,” says Thabiso Masudubele, managing director of Tyvision Media and founder of the Stokvels and Burial Societies Indaba.
Recent research indicates that these groups contribute to the economy significantly through their various accounts at financial institutions.
Accordingly, the Stokvels and Burial Societies Indaba 2016 Roadshow also creates a unique platform where members of Stokvels and Burial Societies can engage with captains of industry to gain insights and improve their investment decision making. Stokvels and Burial Societies can play a role in eliminating poverty and growing wealth in line with the National Development Plan.
Masudubele concluded, “Being such an important sector, we seek to encourage these groups not to see themselves as mere informal groups but as important clients of financial institutions. The relationship between Stokvels/Burial Societies and financial institutions must be reviewed with the appreciative understanding of the important role that these groups play in the business of financial institutions.”
