Published On: Wed, Sep 14th, 2016

Stokvels, burial societies key in economic growth

stokvels-and-burial-societies2JOHANNESBURG, (CAJ News) – IN South Africa, stokvels and burial societies can play a role in eliminating poverty and growing wealth in line with the National Development Plan.

According to a survey undertaken by African Response, 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 8,6 million stokvel members in South Africa, which represents over 20 percent of the local adult population and an estimated 421 000 stokvels in total.

Recent research indicates that these groups contribute to the economy significantly through their various accounts at financial institutions.

In order to empower these organizations, create a platform for stakeholders, particularly ordinary members and to engage around forming solutions to their challenges, Tyvision Media will be hosting the Stokvels
and Burial Societies Indaba 2016 Road Show in Limpopo, North West and Gauteng during the months of September, October and November.

The Indaba Road Show is in partnership with Old Mutual and the Johannesburg Stock Exchange (JSE).

The event 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.”

Thabiso Masudubele, Managing Director of Tyvision Media and founder of the Stokvels and Burial Societies Indaba, believes it is through hosting this annual Indaba, as well as using mediaplatforms 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.”

Stokvels are a group of saving schemes that provide mutual financial assistance as well as social and entertainment needs.

“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,” adds Masudubele.
CAJ News

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