Big warning to South Africa’s R50 billion stokvel sector ahead of the festive season
Stokvels are one of the most popular forms of informal savings and investment groups, with the industry playing a significant role in the country’s economy.
Image: File
With the festive season just around the corner, the South African Police Service (SAPS) has issued a firm warning to stokvels and savings clubs across the country to be vigilant and adopt stronger security measures to protect their cash contributions.
Stokvels are one of the most popular forms of informal savings and investment groups, with the industry playing a significant role in the country’s economy.
According to a 2024 Ipsos market study, the stokvel sector is valued at around R50 billion and comprises over 800,000 groups with 11 million members around the country.
“Traditionally the domain of older members, stokvels increasingly attract younger generations and individuals across higher income brackets. These members are drawn to the wisdom and experience offered by their older counterparts,” Ipsos Client Officer Busisiwe Mahlaba said.
However, while the industry has continued to grow, with many groups opting to save their money in banks, concerns remain about the safety of cash contributions during collections and payouts, particularly over the festive season when criminal activity tends to rise.
In a post on X (formerly Twitter), the SAPS urged stokvel members to take precautionary measures, including avoiding cash deposits on high-risk days, and ensuring cash transactions are conducted in pairs.
"The South African Police Service (SAPS) are urging all stokvel clubs to be proactive and adopt reasonable measures to safeguard their money this festive period and beyond," the SAPS said.
Police tips to avoid being a victim of cash robberies for savings clubs and stokvels:
- Refrain from making cash deposits of club members’ contributions on high-risk days (e.g., Mondays after month-end).
- Ensure persons depositing club cash contributions or making withdrawals are accompanied by another club member.
- Arrange for members to deposit cash directly into the club’s bank account instead of collecting cash contributions in person.
- Arrange for the club’s pay-out to be electronically transferred into each club member’s personal account or accounts of their choice.
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mthobisi.nozulela@iol.co.za