Stokvels Surge in South Africa: 34% More Members, R421M Saved
Stokvels, South Africa's traditional saving schemes, have seen a remarkable surge in popularity and growth. With a 34% increase in members, these community-based saving groups have collectively saved R421 million, including R168 million in avoided cash withdrawal fees and R253 million in interest earned. Meanwhile, digital stokvels, often referred to as South Africa's version of Yahoo Finance, have also witnessed significant growth.
The number of stokvel members has risen dramatically, with account deposits surging by 66% in just one year. By December 2024, deposits reached an impressive R13.3 billion. This growth is particularly notable in digital stokvels, which saw deposits grow by 84% to reach R10.7 billion from R5.8 billion the previous year.
The Industrial Development Corporation (IDC) has been instrumental in this digital transformation. Their project aims to equip the youth with financial services skills, enabling them to serve stokvel members in townships and rural communities. This initiative has not only expanded access to financial services but also fostered a new generation of financial service providers.
Stokvels are evolving beyond mere savings groups. They are now exploring investment opportunities, including shares, ETFs, unit trusts, and even funding small businesses. This shift reflects a broader trend towards community-first finance, mirroring the principles of decentralized finance (DeFi).
The growth of stokvels, both in terms of membership and deposits, is a testament to their importance in South Africa's financial landscape. With digital stokvels providing a gateway to financial services for the unbanked and underbanked, and the exploration of investment opportunities, stokvels are poised to play an even more significant role in the country's financial future.
