All you need to know about stokvels before joining one

Saving clubs better known as “stokvel” in the black community date back as early as the 1990s with the aim of improving the lives of those who lived in poverty. Each year a group of women would gather and discuss how much they will pay to the stokvel treasurer each month, that money is later divided according to how much each person saved at the end of the year.

Now-our-days stokvels have definitely revolutionised, in a sense that the money is no longer kept by just one member of the group but they now open a savings account at the bank. The money saved each month generates interest and that interest is divided equally to all the members at the end of the year.

According to Mokgadi Makwala (28), who is fairly new to the world of stokvel clubs, the concept can get overwhelming because of members with different views and opinions which could lead to conflict and as a result, collapse the club before missions, goals, and visions are met.
“Most of us in our clubs are fairly new and hence, most of what we know about Stockvels is information that comes from friends and family members who have been part of one before. My advice is to gather as much information about the specific clubs before agreeing or signing a membership,” she explained.

She explained how stokvels differ in terms of what type of stokvel is run. For instance, some stokvels are solely for household basics such us toiletries and groceries, which are shared equally amongst members either once or twice a year. This is derived from collective shopping using the collected contributions. Members invest a fixed amount of money, which is agreed upon by all members, into an account and then rotate and receive a lump sum of the combined contributions. In most societies, a coin is tossed to select and choose who will be first to receive either the first lump sum with regards to the money and in terms of perishables, every member receives their fair share during the distribution.  Members of stokvels need to be understanding and compassionate towards one another as individuals differ in terms of living standards.

Roles and duties can be distributed amongst members to ensure all parties feel and are involved. From treasures, chairperson, secretary and many other roles which can be developed to ensure all parties are happy.
Today, more and stokvels for various needs and services are being developed and followed in order to assist individuals to grow economically, get empowered and help better their lifestyles. Stokvels for a property, education, employment (businesses) and various others now exist to close gaps that societies face on a daily basis.

For more information on stokvels, you can visit the National Stokvel
Association of South Africa (NASASA) website.

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