Stokvel
Encyclopedia
Stokvels are clubs or syndicates serving as rotating credit union
s in South Africa
where members contribute fixed sums of money to a central fund on a weekly, fortnightly or monthly basis. Each month a different member receives the money in the fund, which was collected during that period, with no one ever defaulting on contributions. The members can then use the collected fund for their own use, either for payment or investment purposes. These stokvels have been a target for various investment houses in South Africa, hoping to bring these informal saving schemes into the main stream financial world. This being the case, the stokvels are still very much a part of black South African communities and will probably remain so for a number of years to come.
The reason that these clubs are so successful also centers around the social aspects surrounding these clubs - for example women organisers hold parties on Sunday afternoons. In the past they have set the social scene a-buzz with group names like the 'Transvaalians','Black Lions', 'Victory Ladies' and the 'Double up 6Bs'. They often wore uniforms, sang initiation and popular songs as well as hymns.
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
where members contribute fixed sums of money to a central fund on a weekly, fortnightly or monthly basis. Each month a different member receives the money in the fund, which was collected during that period, with no one ever defaulting on contributions. The members can then use the collected fund for their own use, either for payment or investment purposes. These stokvels have been a target for various investment houses in South Africa, hoping to bring these informal saving schemes into the main stream financial world. This being the case, the stokvels are still very much a part of black South African communities and will probably remain so for a number of years to come.
The reason that these clubs are so successful also centers around the social aspects surrounding these clubs - for example women organisers hold parties on Sunday afternoons. In the past they have set the social scene a-buzz with group names like the 'Transvaalians','Black Lions', 'Victory Ladies' and the 'Double up 6Bs'. They often wore uniforms, sang initiation and popular songs as well as hymns.