Members of stokvels in Alexandra attended a weekend Indaba for an update on new developments and benefits for their clubs.
About 1 000 of them from 200 groups including a few from Soweto gathered at East Bank hall also for advice on challenges from their mother body, the National Stokvel Association of South Africa.
Membership is free to the association which was formed at the insistence of government which wanted the sector to be organised as a financial safety net. “This after the previous government accused them of acting as parallel and informal banks it wanted to ban.” said agency coordinator Sello Mohlamonyane.
“The association helps to formalise and ensure they are regulated through the amended banking legislation.” The indaba, he said, was to update them on sector developments, get them to speak with one voice, strengthen their adherence to regulatory and constitutional frameworks and exposed them to benefits from packs and products tailor-made for them by partner companies.
Mohlamonyane added that the association also received from the Reserve Bank, relevant advice and information which it passed on to strengthen the clubs’ financial operations and safeguard their savings and investments.
“This requires the clubs’ members to remain disciplined, trust each other and those entrusted with positions,” Ndumiso Ntuli, another coordinator said.
He outlined the benefits to the members as short-term savings and long-term investments including for groceries and home needs, weddings, funerals, school fees, transport and for business start-ups. “They also are eligible for membership to a funeral cover of up to R10 000 at R15 monthly subscriptions for principal members and staggering amounts for nine other nominees between 18 and 85 years of age.”
Ntuli advised the members to adhere to their constitutions to enable them to access benefits from more companies partnering with the association. “Their tailor-made products are for free to participating group members and distributed to them in the comfort and safety of their own homes.”
The coordinators expressed concern with accessing groups in rural areas. Mohlamonyane said, “Our mandate is to go everywhere to enhance the membership, ensure they remain formalised and protected against dubious schemes particularly of a pyramid nature.
“We have reported to the NPA that some of them are trying to fleece the groups.”
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