Campaign urges stokvels to register as co-operatives for financial power

Stokvels across Gauteng are urged to register as co-operatives to unlock greater financial and business opportunities.

This was the key message at the Stokvel Talk Roadshow, hosted by the Stockvel Media Hub (SMH) and sponsored by the SPAR Group, at the Orlando East Community Hall on September 20.

A stokvel is an informal savings club where a group of people pool money for a common purpose.

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Brands like Thokoman, Sela, Lifeway Inkomo Funerals and others joined members from across Soweto to celebrate unity, culture and shared prosperity.

SMH CEO Eric Phiri explained the campaign’s importance, saying stokvels are currently regarded as social entities, which means they have no legal standing, and that even if they banked millions, a bank would not grant them a loan because they are not recognised as a business.

“Registering as a co-operative makes a stokvel a legal entity, able to apply for funding, borrow money, and access government enterprise support.”

“Registering as a co-operative makes a stokvel a legal entity, able to apply for funding, borrow money and access government enterprise support.”

The roadshow was part of a broader provincial campaign educating stokvels on the benefits of formalising their operations.

With registration, members are encouraged to save collectively and build businesses that create local employment and strengthen township economies.

The SPAR Group is the primary sponsor, providing logistical support and promoting stokvels in its branches.

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“SPAR offers discounted rates, and we want stokvels to use their collective power to buy in bulk and save.

“It also showed commitment to community upliftment by donating dignity packs during Women’s Month,” Phiri said.

He said that while grocery stokvels are common, they can extend beyond food purchases.

“They can be formed for housing, funerals, travel or car purchases,” he concluded.

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The SPAR national PR, communications and sponsorship manager, Mpudi Maubane, said, “As a community-based retailer, we see stokvels as a powerful expression of unity, trust and shared prosperity, which is the spirit that guides SPAR.”
For more information, call Phiri on 084 739 0142.