Stokvel Deposits Surge 66% to R13.3 Billion as Groups Explore Investments
Stokvels, South Africa's community-based saving groups, have witnessed a remarkable surge in deposits, jumping by 66% to R13.3 billion in just one year. This significant growth reflects the evolving nature of these saving groups, which are now exploring investment opportunities and embracing digital platforms.
The collective power of stokvel members is evident in their savings. Together, they have amassed R421 million, with R168 million saved through avoided cash withdrawal fees and another R253 million earned in interest. This growth is not only in traditional savings but also in digital deposits, which have soared by 84% to R10.7 billion. The number of stokvel members has also increased by 34%, indicating a broader participation in these community-based initiatives.
As stokvels evolve, they are expanding their horizons beyond simple savings. They are now exploring investment avenues such as shares, ETFs, unit trusts, and even small business funding. This shift signals a maturing financial landscape within these communities. Furthermore, the growth and transformation of stokvels may pave the way for future interest in crypto-native solutions, offering greater transparency and global access.
The boom in stokvel deposits and the evolution of these saving groups into investment communities highlight the growing financial sophistication and collective power of South Africa's communities. With digital stokvels mirroring principles of decentralized finance (DeFi) and potentially exploring crypto-native solutions, the future of community-first finance in South Africa appears promising.
