With about 810 000 active stokvels collecting over R50 billion in savings from more than 11 million members in the beginning of this year alone, stokvels have proved to be a financial lifeline for many.

But since some stokvels still prefer to withdraw cash and gather to equally share the savings contributions, they have become easy targets for robbery, sometimes with deadly consequences.

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According to research firm African Response, the average member belonged to up to three stokvels and an average of 34 members per stokvel each contributes an average of R357 per month.

Easy festive targets

According to incidents reported to the South African Banking Risk Information Centre (Sabric), between 2014 and 2017, 53 stokvel robbery incidents were reported, with 77% of them occurring during the festive season. 

The National Stokvel Association of South Africa (NASASA) has expressed concern with the recent reports of robberies at stokvel meetings during this festive season.

Chairman Andrew Lukhele said during this period, stokvel groups happen to be the easiest targets for robbers, either at their respective homes or en route from the banks.

“Imagine a few victims who withdraw R300 000 from the bank, board a taxi on their way to share the loot, only to be accosted and robbed of their hard-earned money,” he said.

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On Saturday two suspects pounced on unsuspecting stokvel members as they shared their savings at Dingindoda Section in Mshatsa, outside White River, in Mpumalanga, robbed them of their cash, and shot and killed a 30-year-old woman as they left.

This comes a week after another stokvel was robbed of R60 000 of its savings by criminals who accosted them as they were about to share the money at the home of one of its members in Tshware village in GaMamabolo.

Inside jobs

The fact that the criminals often pounce at exactly the right time and place of these sharing events indicate they have prior information on when and where the members will withdraw or gather to disburse the funds. This points to most of these robberies being inside jobs.

“These robberies often occur with the help of people inside the circle, or those with knowledge of the circle. So, it is very important that few people know when large amounts of cash will be withdrawn or deposited,” Ross Linstrom, Standard Bank spokesperson, said.

He, however, said because stokvels were made up of a group of people and that they all have to know where and when the funds will be disbursed, it was difficult to contain this information.

Linstrom said people also tend to let their guard down too much during the festive season, warning that criminals do not take a break but that they were most active and opportunistic during holidays.

Safer alternatives

These incidents happen despite major banks offering stokvels banking facilities such as transactional accounts for easier contributions, and for members to conveniently receive their share of proceeds.

First National Bank (FNB) Retail Cash Investments CEO Himal Parbhoo said being a member of a stokvel is one of the most popular ways to develop a saving culture in SA, but that the challenge has always been ensuring that stokvel savings were managed efficiently.

However, the bank’s Stokvels and Group Savings Head, Sifiso Nkosi, said they have seen over 80% of stokvel payments made by its banked signatories.

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He said 46% of the 102 293 stokvel members on FNB’s platform have opened a transactional account for easier contributions or to conveniently receive their share of proceeds.

“This is an exciting time of the year for stokvel members as many get to enjoy the benefits of their financial discipline over the course of the year. For those who are planning to cash in some of their savings, we encourage them to do so safely and responsibly. Members whose group savings are with FNB are encouraged to use our digital channels to be able to better manage their money whenever and wherever they are,” Nkosi said.

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