Published On: Wed, Oct 12th, 2016

Forum highlights stokvels value to SA economy

stokvelsJOHANNESBURG, (CAJ News) – THE second annual Stokvel and Burial Societies Indaba will soon be rolled out to more cities in the country following its successful hosting in Gauteng, South Africa’s economic hub.

Old Mutual have partnered with with strategic partnerships firm, Tyvision, to host the event at the Ikageng Hall, Mamelodi East in Tshwane, this week.

This informative indaba follows the Kagiso and Soweto Indaba held in September, and will be rolled out across eight more cities.

Thembisa Mapukata, general manager of Old Mutual’s Foundation Market, says South Africa’s stokvels have grown into a very important and relevant sector of the economy.

There are 8,6 million stokvel members in South Africa today, which means more than 23 percent of South African adults belong to a stokvel. Their total savings are worth an estimated R44 billion

“The statistics speak for themselves,” says Mapukata.

Through the indaba it aims to help bridge the gap between the informal economy and the formal economy.

“Burial societies are not always aware of the formal channels and tailored offerings that are available for them. The indaba gives them the opportunity to ask questions and find out more about the benefits,” says Mapukata.

Mapukata says the benefits of formalised channels of saving include the opportunity to earn interest, greater transparency and legal protection.

“Through the indaba we’re able to share with members how their hard-earned money can grow safely and securely, and also make a positive contribution towards the country’s economy. Strong nations with healthy, inclusive economies are built on the savings of their citizens.”

Stokvels can improve their efficiencies through the cloud technology that a large financial institution can provide. There are digital platforms which automatically capture new investments, reflect these instantly and calculate each member’s investment and share in the stokvel.

Next stops for the indaba include Polokwane, Mafikeng and Sebokeng.

CAJ News

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