Stokvels are a unique South African savings scheme where members regularly contribute a fixed amount to a central fund and then receive an annual lump sum payment. It is currently estimated that 11,4 million people are members of stokvels in South Africa, contributing over R44 billion per annum.
Through Satrix and StokFella, we are creating an opportunity to enhance South African stokvels and encourage members to not only save for the shorter term but also include long-term wealth creation as part of their savings goals. Satrix has made its exchange-traded fund (ETF) investment products available on the StokFella platform – enabling stokvels to grow and preserve their wealth by investing on the Johannesburg Stock Exchange. Members also benefit from the StokFella ap, which creates value for clients as it gives them access and choice in one place.
The collaboration creates an exciting opportunity to enhance financial inclusion among stokvel members and transition them from consumers and savers to investors. This is particularly important in South Africa, where it is estimated that approximately two-thirds of South African adults do not save. This leaves them vulnerable to unexpected events, which may encourage them to take on debt.
To bring the benefits of this collaboration to stokvel members around South Africa, StokFella and Satrix have introduced workshops in selected parts of the Gauteng, KwaZulu-Natal, Limpopo and the North West to assist stokvels that are looking to invest and educate and empower members.