- Title
- The development of a guiding framework to maximise the potential benefits of stokvels: Recent evidence from South Africa
- Creator
- Dikwayo, Mziwamadoda
- Subject
- Rotating credit associations -- South Africa
- Subject
- Savings and loan associations -- South Africa
- Subject
- Africans -- Economic conditions
- Date Issued
- 2021-04
- Date
- 2021-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/51131
- Identifier
- vital:43211
- Description
- The financial exclusion of the poor from the formal financial sector has contributed to the never ending cycle of inequality and poverty in South Africa. It is however evident from the R50 billion (Nasasa, 2020) generated each year in the stokvel market, that those previously excluded have been able to create their own informal market with immense potential. The full potential of the stokvel market has however not been adequately explored which has resulted in members not fully utilising this informal sector to improve their standards of living and the formal sector not providing adequate product solutions to benefit members. Majority of stokvels are still focused on traditional rotationally disbursement mechanisms designed for short-term goals (Zondi, 2016) and regardless of the market that has growth to be worth R50 billion, members are yet utilise funds accumulated on instruments and mechanisms to improve standards of livings for themselves, families and general communities. The formal sector provides stokvel savings products that offer stokvels with simple savings mechanism often generating little interests which may not necessarily provide the full potential benefit to the members. This was also shown in a study by African Response (2019) indicating that 40% of stokvels had their money invested in low to no interest accounts. Stokvels have also evolved and are now used for far more than just a simple savings mechanism, with some stokvels focusing on continuous rotationally mechanisms, while others focus on fixed periods. Stokvels can exist for different reasons including for groceries, burial, school fees and longer term purposes such as building houses or buying cars or a combination of these. Solutions available ought to therefore take into consideration the key needs of stokvels while considering short term and medium to long term solutions which current simple savings solutions offered by the formal sector may not completely offer. In keeping up with the market, banks may try to enhance their products but Moliea (2017) concluded that banks were being flexible on things that members did not require. Against the stated research problem, the primary objective of this research is to investigate how the traditional mechanisms of stokvels can be amended and improved to ensure maximum benefits/returns for its members; which benefits are not only long-term in nature, but also taking account of the short-term needs and realities of poor communities within the context of the South African economy.
- Description
- Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
- Format
- computer
- Format
- online resource
- Format
- Format
- 1 online resource (104 pages)
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Dikwayo, M.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |