Stokvel in South Africa have an estimated value of R50 billion with 800 000 stokvel groups and a membership of 11,5 million people.
Stokvels is a type of ‘rotating savings and credit associations’ found only in South Africa that remains a hidden sector of the economy. There are different types of stokvels such as savings stokvels, burial stokvels, investment stokvels, grocery stokvels, high-budget stokvels, birthday-party stokvels, and others.
Why South Africans use stokvels
Inclusion
Allows people in informal sector to access savings service.
Financial empowerment
An opportunity to take control of their financial future.
Financial education
A platform for members to learn about financial management.
Community
Stokvels are a way for people to come together and support one another financially.
Social connection
Stokvels provide a sense of community, and camaraderie among members.
Trust
Stokvels are based on trust and mutual support.
Key messages
Demographics
Stokvel members are typically working-class and lower-middle-class individuals, who may have different spending habits and purchasing power than other segments of the population.
Spending Power
Stokvel members may have regular and stable income, which they allocate to different expenses, including savings and investments, which can make them an attractive target for advertisers and marketers.
Community Orientated
Stokvel members are typically part of tight-knit communities, and this can lead to word-of-mouth marketing and a higher likelihood of products and services being recommended to friends and family.
Financial Literacy
Stokvel members are typically financially literate, which means that they are more likely to understand and appreciate financial products and services.
Brand Loyalty
Stokvel members may have a strong sense of community and trust among members, and this can lead to brand loyalty and repeat purchases.
Targeted Marketing
Stokvel members may be reached through targeted marketing campaigns, such as through community events, or through partnerships with stokvel organizations.
Savings Orientated
Stokvel members are typically oriented to saving and investing, which makes them more likely to invest in long-term products, such as insurance and pension products.
Diverse & Varied
Stokvels can come in many different forms, catering for different needs, such as for savings, education, funeral, and investment, which means
that marketers can target specific segments within the stokvel market.