Throughout history, the concept of a stokvel has been largely consumer-based. For many years, groups of people have come together to save towards a particular goal.
From basic household items to big purchases, stokvels have always enabled ordinary people to better afford their needs and desires. However, in recent years, more of the R45bn industry’s massive potential has been realised and is gradually being tapped into.
It is this wealth-creation potential that Stokvel Academy seeks to fully unleash. Established in 2013, the academy provides stokvels with training to successfully run their stokvels, as well as the necessary financial literacy to move from a consumer-based approach to one that empowers members to have their money work for them.
We spoke to stokvel guru Busi Skenjana, the founder of the Stokvel Academy, about the evolution of stokvels, the industry’s potential for wealth creation as well as using stokvels as vehicles to empower black communities.
When and how did your stokvel journey begin?
My stokvel journey started on a personal level when I joined my first stokvel in 1991. It was a social club with a burial component.
How did the Stokvel Academy come about?
The academy came about as a result of my observation that stokvels are supposed to be saving money for wealth creation. Instead, they are the greatest consumers. The so-called R46bn that circulates within stokvels a year, is “saved” for consumption. I then realised that there is a gap and a need to educate stokvels about sustainable generational wealth creation through stokvels.
What has kept your passion for stokvels going over the years?
I strongly believe that stokvels should be one of the solutions to poverty alleviation. Through financial literacy education, stokvels can play a significant role in our economy.
As a stokvel guru, what do you believe is the secret ingredient for the success of any stokvel?
Financial education is key. We need to increase levels of stokvel financial knowledge based on financial control and financial planning. Stokvels should and can be job creators.
You have run the academy for nearly a decade. What would you say has been your biggest highlight?
It is the impact we have made on some bulk grocery- buying stokvels, which used to “save” or rather dump their hard-earned money at wholesale stores. At the end of the year, these stokvels derive no meaningful benefit from the so-called money “saved” at these stores. I also get fulfilled when I engage with the youth, who want to learn more about the value of stokvels.
You have worked closely with traditional and new-age digital stokvels. Do you believe there is room for both to coexist?
There is certainly enough space for both traditional and new-age digital stokvels to coexist. There are strong ubuntu traditional values that we need to protect and preserve. At the same time, stokvels need to embrace better and safer digital means of managing their money.
Stokvels carry loads of potential. How can they be used to develop the black/township economy?
Indeed. Stokvels can be used as alternative sources of funding for township start-up businesses. One product, which is almost a staple in most township homes is atchar, and yet there is no single big atchar factory in the township.
In what ways can corporates become more involved in the empowerment of the stokvel industry?
Through supporting and funding stokvels' financial education and enterprise development.
How do you envision the growth and change within the stokvel industry in the next few years?
Through private-public partnerships. In countries like Kenya, they have informal co-operative societies known as chamas. Stokvel members themselves need to embrace economic development as opposed to the social component of stokvels. Stokvels should embrace the co-operative business model.
newsdesk@sowetan.co.za
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