Stokvels are integral to South Africa’s financial landscape, with participation from over 40% of the adult population. These group savings schemes offer a vital platform for individuals to unite resources, cultivate financial discipline, and safeguard their financial well-being, especially in a country where savings habits are strained.
Rapule Mahlangu, Head of Associations and Affinity Groups at Metropolitan, says, “Open communication, mutual respect, and trust are essential for the smooth functioning of these groups. Members must feel comfortable discussing financial matters, setting goals, and making collective decisions. Without a solid foundation of trust and respect, conflicts can arise, jeopardising the stability and success of the stokvel.”
Stokvels not only enhance financial security but also foster social cohesion and empowerment within communities. They enable individuals to leverage collective strength, navigate economic challenges, and achieve shared goals. Ultimately, contributing to building a more resilient and prosperous future for South Africa.
Mahlangu is available for interviews and to further unpack the following talking points:
What are some common challenges faced by stokvels, especially in light of economic uncertainty, and how can these challenges be addressed?
How crucial are strong relationships and support systems among stokvel members for the success and longevity of these groups?
Importance of financial literacy within stokvels.
In what ways do stokvels promote economic empowerment within South African communities?
How do funeral plans and other financial services offered by institutions like Metropolitan contribute to the resilience and sustainability of stokvels?
What do you envision for the future of stokvels in South Africa.
Stokvels and Society’s success is all about relationships, support, and understanding
Did you know the National Stokvel Association of South Africa (NASASA) estimates that over 11 million South Africans are members of a stokvel? In case you didn’t know, that’s around 40% of the adult population – which makes stokvels a primary source of savings in a country with a poor savings culture.
South Africa’s stokvel industry is worth R45bn and it only continues to grow, but Rapule Mahlangu, Head of Associations and Affinity Groups from Metropolitan says economic uncertainty has turned managing stokvels into a daunting task. As a group savings platform, he says stokvel success demands a mental shift into human understanding and relationship management to properly succeed.
“A shift in mindset and relationship strategies can alleviate the pressures associated with stokvels and pave the way for success,” says Mahlangu. “Relationships and support systems have the power to transform stokvel management stress into peace of mind and prosperity – it just needs to be nurtured in the right ways.”
Build strong relationships within stokvels
Rapule highlights that central to the success of any stokvel is the strength of the relationships among its members.
“Open and honest communication, mutual respect for boundaries, and a foundation of trust are the cornerstones of harmonious stokvel dynamics. Regular meetings provide opportunities for members to voice concerns, share ideas, and celebrate achievements, fostering a sense of unity and solidarity within the group.”
Understand and address member concerns
Financial education is often a significant concern for stokvel members, many of whom may lack the necessary knowledge to make informed financial decisions. Mahlangu says access to financial advisors and financial literacy resources can empower members to navigate financial challenges and mitigate risks effectively. “One of the relationships to nurture in this journey is definitely with a financial adviser. That makes all the difference between failure and sustained success, especially when large groups are involved.”
Additionally, he says the prospect of member deaths raises legitimate concerns within a group that’s working towards a common financial goal. “Quick claims pay-outs and clear processes for beneficiaries can ease the burden on grieving families and ensure continuity within the group.”
Support in times of need
Stokvels traditionally provide financial assistance to members’ families in the event of a death. According to Mahlangu, this support helps alleviate the financial strain associated with funeral expenses and provides much-needed peace of mind during difficult times.
“Something as simple as a funeral plan can make sure that your stokvel contributions continue after death,” says Mahlangu. “By offering payment protection on funeral cover, Metropolitan’s comprehensive funeral plan ensures financial security and support, empowering groups to thrive in any economic climate.”
Empowering Communities for the Future
By fostering strong relationships, promoting financial literacy, and embracing innovative solutions, stokvels have become powerful vehicles for economic empowerment within South African communities.
“Through collective action and mutual support, stokvel members can navigate the challenges of today’s economic landscape and build a brighter future for themselves and their families.”
At the end of the day, Mahlangu says it is a financial agreement between a group of people, and that means relationship management and compassionate understanding play a crucial role in stokvel success.”
