Little savers are now big business
Stokvels have long realised the benefits of bulk purchases but are moving on to interest-earning ventures
Retailers are anticipating a flood of cash from stokvel groups this festive season, as members cash in on their annual contributions to stock up on bulk purchases of goods such as rice, milk and flour. Stokvels hold up to an estimated R49-billion in savings, and the Old Mutual Savings and Investment Monitor, published in June, found that 18% of them - holding about R8.8-billion - were set up specifically to buy groceries. One member of a grocery stokvel, Mulingo Makhubela, said each member would be getting goods to the value of R5000. "We contribute R350 per month; then we buy groceries now, [in] December," she said. Makhubela's group illustrates how much buying power a small group has - the 15-strong savings club will spend R75,000 at the retailer of their choice this month. Thabiso Masudubele, founder of the Stokvel and Burial Societies Indaba, said many stokvel members tended to cash in their benefits in this way instead of investing the money. "This time of year sees many stokve...
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