How much are stokvels making?
According to the National Stokvel Association of South Africa (Nasasa) the stokvel economy is estimated to be worth R49 billion, with more than 800 000 recorded and formalised stokvels in the country.
What options do you have?
Chief “fab” officer Tuleka Mpotulo of a new-age stokvel founded to create a social club that will allow women to come together and empower each other through life experiences says that, as a collective, they’ve started engaging with investment-savvy stokvels that have seen their assets moving from a worth of R1 000 to that of nearly R2 million. “This has sparked an interest in how we can evolve into an entity that explores tangible investment opportunities,” she says.
What are the challenges?
The challenge, she explains, is identifying and understanding into which areas the stokvel needs to venture and how. Stokvels are a great way to get collective “buying power” and to access investments that are sometimes difficult to venture into as an individual, says Gerald Mwandiambira, financial expert and author of Imali Yami, Chelete Yaka, My Geld, My Money.
Find the right group
For oGatsheni Architectural and Engineering, an architecture, building construction and civil engineering company, their stokvel arm, Property Stokvel (established in 2017) is founded on exactly this – common interest and goals.
“Property Stokvel is made up of people who are aimed at achieving property prosperity and wealth,” explains Mhlekazi Andile Ndlhovu, the company’s managing director. “Our prime objective is to acquire land, build houses, purchase new homes and invest in properties by using the same mechanism of our traditional South African stokvels”.
How to succeed?
Attorney Makhosazane Nkonyane says each stokvel needs to have a founding document or constitution, which details the intricacies of the saving mechanisms, investment plan and strategy as well as the type of investment, she adds.
Stay vigilant when entering into any form of financial investment and protect your hard-earned cash against fnancial fraud. “If any investment seems too good to be true, it usually is,” Mwandiambira cautions. Don’t get taken for a ride.
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