The development of a guiding framework to maximise the potential benefits of stokvels: Recent evidence from South Africa
- Authors: Dikwayo, Mziwamadoda
- Date: 2021-04
- Subjects: Rotating credit associations -- South Africa , Savings and loan associations -- South Africa , Africans -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51131 , 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. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Dikwayo, Mziwamadoda
- Date: 2021-04
- Subjects: Rotating credit associations -- South Africa , Savings and loan associations -- South Africa , Africans -- Economic conditions
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51131 , 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. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
Investigating informal savings as income generating and proverty alleviating tool in Nelson Mandela Bay Municipality
- Authors: Netnou, Ntombomhlaba Salome
- Date: 2012
- Subjects: Banks and banking, Cooperative -- Developing countries , Rotating credit associations -- South Africa , Cooperative societies -- South Africa , Women -- Finance, Personal
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9047 , http://hdl.handle.net/10948/1616 , Banks and banking, Cooperative -- Developing countries , Rotating credit associations -- South Africa , Cooperative societies -- South Africa , Women -- Finance, Personal
- Description: The study investigated the informal savings approach as an income-generating and poverty alleviation tool for women. The focus of the study is specifically in the Nelson Mandela Bay Municipality. The purpose of the study was to explore the reasons behind the involvement of women, in particular, to the use of informal savings as a tool for income generation and poverty alleviation. South Africa is characterised by inequitable growth and development, a high degree of poverty, increasing demands and limited resources. It is because of this backdrop that many women in poor communities, both rural and urban, devised brilliant plans to overcome this setback. Women, particularly African women, have for a long time been side-lined in economic decision making activities, both in their homes and elsewhere. For the purposes of this study, a mixed method research approach was employed, meaning that the study will follow both the qualitative and quantitative approaches. The respondents are a mixture of both literate and illiterate persons, and because of that, the researcher had to use both English and the home language of the respondents to explain the contents of the questionnaires and obtain the relevant information. The study identified the reasons that stokvels, which were believed to be popular in the past, and still are, because Black people in South Africa did not have access to formal financial institutions, remain popular long after the demise of apartheid. It is in the interest of the citizens of Nelson Mandela Bay Municipality to archive the financial activities of its inhabitants as this valuable information will be needed by future generations. This can be done by creating a website or adding a link to the existing ones where the information is readily available for the users. For future research purposes, stokvels in various parts of the Municipality and South Africa as a whole need to be studied in order to identify and compare to the available literature the general success factors.
- Full Text:
- Date Issued: 2012
- Authors: Netnou, Ntombomhlaba Salome
- Date: 2012
- Subjects: Banks and banking, Cooperative -- Developing countries , Rotating credit associations -- South Africa , Cooperative societies -- South Africa , Women -- Finance, Personal
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:9047 , http://hdl.handle.net/10948/1616 , Banks and banking, Cooperative -- Developing countries , Rotating credit associations -- South Africa , Cooperative societies -- South Africa , Women -- Finance, Personal
- Description: The study investigated the informal savings approach as an income-generating and poverty alleviation tool for women. The focus of the study is specifically in the Nelson Mandela Bay Municipality. The purpose of the study was to explore the reasons behind the involvement of women, in particular, to the use of informal savings as a tool for income generation and poverty alleviation. South Africa is characterised by inequitable growth and development, a high degree of poverty, increasing demands and limited resources. It is because of this backdrop that many women in poor communities, both rural and urban, devised brilliant plans to overcome this setback. Women, particularly African women, have for a long time been side-lined in economic decision making activities, both in their homes and elsewhere. For the purposes of this study, a mixed method research approach was employed, meaning that the study will follow both the qualitative and quantitative approaches. The respondents are a mixture of both literate and illiterate persons, and because of that, the researcher had to use both English and the home language of the respondents to explain the contents of the questionnaires and obtain the relevant information. The study identified the reasons that stokvels, which were believed to be popular in the past, and still are, because Black people in South Africa did not have access to formal financial institutions, remain popular long after the demise of apartheid. It is in the interest of the citizens of Nelson Mandela Bay Municipality to archive the financial activities of its inhabitants as this valuable information will be needed by future generations. This can be done by creating a website or adding a link to the existing ones where the information is readily available for the users. For future research purposes, stokvels in various parts of the Municipality and South Africa as a whole need to be studied in order to identify and compare to the available literature the general success factors.
- Full Text:
- Date Issued: 2012
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