StokFella News & Insights

Introducing a New Standard for Stokvels - Letter from the CEO

Wed, 04 Mar 2026 08:29:01 GMT

Dear StokFella Family,

For the past 10 years, we have walked this journey with you.

We have seen dreams formed around kitchen tables and communities build homes, educate children, bury loved ones with dignity and invest for the future, together.

And in those 10 years, we have learned something powerful: A stokvel is not just about money. It is about people.

At the heart of every successful stokvel are members who contribute consistently and believe in the vision. But life does not always move according to plan. We have seen what happens when the unexpected strikes.

During COVID, many stokvels lost members. Others saw contributions disrupted because someone lost their income. In everyday life, accidents happen, especially in a country where more than half of the workers rely on the road network to get to and from work every day.

When something unforeseen happens to even one contributing member, the entire stokvel feels it. Goals are delayed. Momentum slows. Dreams are postponed.

And that is where we asked ourselves an important question: Should a stokvel ever stand alone against the unexpected?

We believe the answer is No.

Today, we are proud to introduce a new standard on the StokFella platform in collaboration with Tsoga Afrika Brokers .

Your group will now have access to two new benefits: Accidental Death and Accidental Permanent & Total Disability for eligible contributing members of Gold and Platinum subscription stokvels.

This is not an add-on, nor is it an insurance cover, as we are not underwriters , but a benefit we offer to our members as part of their chosen subscription package. It is a natural progression of who we are.

For years, we have delivered transparency, security and convenience. Now we go further, strengthening the resilience of the stokvel itself.

We worked intentionally to make this possible, collaborating with trusted partners to structure benefits that support real stokvel realities. This was so important to us, we pursued it. We designed it. We insisted on it. Because we believe stokvels deserve more than administration tools, they deserve protection.

This benefit is a signal of where we are going. It reflects our commitment to stretching the market and continuously raising the standard of what a stokvel platform should offer.

If your stokvel is already on StokFella and contributing consistently, you should be asking; “are we on the subscription that unlocks this value?”

And if your stokvel is not yet on StokFella, perhaps the better question is, why not?

We are here to help you build stokvels that are structured, sustainable and resilient against life’s uncertainties.

I invite you to explore the full details of the benefits and see how this strengthens your stokvel’s future. View the Benefits

The future of stokvels just keeps getting brighter

Here’s to a powerful year ahead.
T shepo Moloi
Founder & CEO, StokFella

Looking Ahead: StokFella’s 2026 Commitment to Stokvel Growth - Letter from the CEO

Tue, 27 Jan 2026 10:19:00 GMT

Dear StokFella Family,

Welcome to your New Stokvel 2026 Goals.

For some of you these are renewed goals. No matter how you look at it, a new year always brings fresh energy. New plans. New goals. And for many of us, a renewed commitment to doing things differently. Smarter, more consistent, and more intentional.

At StokFella, we believe that the best way to start strong is to start together .

Whether you’re joining your first stokvel, continuing with a group you’ve built over time, or thinking about creating a stokvel that finally matches the goals you’ve been carrying in your heart. This is your sign to go for it .

Because stokvels have never just been about saving money. They’re about building momentum. Creating discipline. Protecting your future. And reaching milestones that are hard to reach alone.

2026 is the year we move with purpose

This year, we want every member and every stokvel on StokFella to feel empowered to:

Start a stokvel that matches your goals (education, home upgrades, business, emergencies, travel, you name it)
Stay consistent in contributions , even when life gets busy
Strengthen your group structure , so everyone is clear and protected
Keep building , even if your goal is a long-term one

Progress doesn’t always come from big leaps. Most times, it comes from small, committed steps, month after month.

More value is coming in 2026

We also want to reassure you: we’re not slowing down. In 2026, we’ll be continuing to bring more value to stokvels on StokFella and we’ll be introducing exciting new value-adds across the platform and subscriptions to help you run your stokvel more smoothly, more confidently, and with even more peace of mind.

Our focus remains the same: making it easier for stokvels to operate with structure, transparency, and trust, while helping you reach your goals faster and smarter.

The Stokvel Marketplace is more than an app; it’s a step forward in realising our vision of putting collective capital to work for the benefit of our members and the communities they serve. And this is only the beginning.

Thank you for continuing to walk this journey with us. Together, we are shaping the future of community capital.

Yours in collective progress,
T shepo Moloi
Founder & CEO, StokFella

Introducing the Marketplace Powered by StokFella - Letter from StokFella CEO

Thu, 09 Oct 2025 11:14:51 GMT

Dear StokFella Family,

For years, our mission at StokFella has been to use the power of collective capital to help people improve their lives and their communities. Together, we’ve seen how stokvels can achieve more when they pool their resources. Whether that’s saving towards goals, supporting members in times of need, or creating opportunities for financial growth.

Today, I am proud to share the next step in this journey: the launch of the Stokvel Marketplace, powered by StokFella . This is not simply an update to our existing app, but a new, dedicated platform built exclusively for stokvels . The Marketplace connects stokvels with trusted sellers, giving them access to bulk deals, group services, rewards, and income-generating opportunities that were once difficult to reach.

For stokvels, the Marketplace is about unlocking buying power and making every rand go further. It allows groups to purchase in bulk, access reliable sellers who understand how stokvels operate, and even explore new ways to bring value back to their members.

For sellers, the Marketplace opens the door to something equally powerful: direct access to stokvels, organised and verified buying groups with real purchasing power. Instead of struggling to reach new customers or secure shelf space in traditional retail, businesses can now connect directly with stokvels who are ready to buy collectively, consistently, and securely.

The impact of this is bigger than individual transactions. With every deal made, we are strengthening community wealth, supporting small business growth, and proving the strength of South Africa’s collective economy. This is how we build resilience, create opportunities, and ensure that stokvels continue to be a force for transformation.

Thank you for continuing to walk this journey with us. Together, we are shaping the future of community capital.

Yours in collective progress,
T shepo Moloi
Founder & CEO, StokFella

The Power of Community Capital in African Stokvels - Letter from StokFella CEO

Wed, 02 Apr 2025 09:33:22 GMT

Dear StokFella Family,

Wealth in Africa has often been seen as more than just individual success—it is about the strength of the collective. Across the continent, communities have long practiced financial cooperation as a means of resilience and growth. This spirit of shared prosperity is the foundation of community capital, which is best exemplified by stokvels. More than just savings groups, stokvels are dynamic financial networks built on trust, mutual accountability, and common goals. As access to traditional financial services remains limited for many, stokvels prove that when people unite financially, they create sustainable solutions for long-term wealth-building and financial security.

At StokFella we believe it is time to go Back to Basics – to remind South Africans of the power of saving through stokvels. Financial security starts with the discipline of putting money aside, no matter how small. The foundation of financial stability is savings, and stokvels provide a practical, accessible way to make that possible.

The Behavioural Economics of Stokvels

At the core of stokvels is a deep understanding of human behaviour. While traditional financial systems rely on contracts and credit scores, stokvels function on the foundations of social proof, trust, and reciprocity—key behavioural economic principles that influence financial decision-making.

1.Social Proof & Belonging

People tend to follow the behaviour of those they identify with. Within stokvels, members see their peers saving and investing, reinforcing the belief that financial discipline is both achievable and beneficial. This sense of belonging encourages consistent participation, reducing the temptation to spend impulsively.

2.Trust as Collateral

In mainstream finance, lending is secured through assets or credit history. In stokvels, trust replaces collateral. Members contribute regularly, not because they are legally bound, but because of long-standing relationships and a shared understanding that their turn to benefit will come. This mutual accountability fosters stronger financial discipline than many formal lending structures.

3.Reciprocity: The Unwritten Rule

Reciprocity is deeply embedded in African culture. Within stokvels, members know that their contributions today will ensure financial support when they need it. Whether it's a burial society, an investment, savings, or grocery stokvel, the expectation of mutual support sustains these groups across generations.

Community Capital as an Engine for Growth

While stokvels have traditionally focused on saving, they are increasingly being leveraged for investment, wealth-building and community upliftment. This evolution shows that community capital is not just about short-term financial relief—it is a model for long-term economic transformation. By leveraging collective power, stokvels are driving financial inclusion, fostering entrepreneurship, and strengthening economic resilience across South Africa.

The Future of Stokvels in Africa’s Financial Landscape

As Africa's financial landscape evolves, stokvels remain a vital component of the economic ecosystem. At StokFella, we believe that the future of finance in Africa is rooted in its people. Community capital is not just an alternative to mainstream banking—it is a powerful, people-driven model that continues to shape the continent’s economic future. By recognising and embracing the strength of stokvels, we can harness the power of collective action to build a more inclusive and prosperous Africa.

While technology like StokFella is bridging the gap between informal and formal finance ensuring that community capital remains relevant in a digital era, the behaviour of committing to saving as a collective is how we build financial resilience in South Africa.

Tshepo Moloi

CEO, StokFella

Letter from StokFella CEO Tshepo Moloi - Welcome to 2025

Tue, 28 Jan 2025 09:55:18 GMT

Dear StokFella Family,

As we step into 2025, I want to take this moment to wish each of you a season filled with growth, success, and the realisation of your financial goals. The start of a new year is always an opportunity to reflect and refocus—and I’m thrilled to welcome you back to a year full of promise and potential.

Over the past eight years, StokFella has proudly supported stokvels in achieving remarkable milestones. Together, we’ve helped members fund children’s education, purchase homes, buy franchise, build a school and even launch businesses. These are the big dreams stokvels make possible.

However, this year, we want to go back to basics. Our focus for Stokvel Goals 2025 is simple: just start. Start where you are, with what you have, and with the people in your community. Whether it’s saving for a rainy day, contributing towards small but meaningful goals, or simply coming together to support one another—every step counts.

Starting or growing a stokvel isn’t just about money—it’s about building connections, creating shared goals, and finding strength in unity. At StokFella, we’re here to support you every step of the way, providing the tools, guidance, and resources to make managing your stokvel simple and effective.

This year, let’s focus on taking those first steps. Let’s embrace the power of starting small and see where it takes us. Together, we can continue to make a difference in our own lives and in our communities.

So here’s my challenge to you: Just Start. Let 2025 be the year you join or create a stokvel and unlock the power of collective saving. You don’t need to have all the answers—you just need to begin.

Thank you for your trust and belief in StokFella. Let’s make 2025 a year of small beginnings with great impact.

Tshepo Moloi

CEO, StokFella

Letter from StokFella CEO Tshepo Moloi - Reflecting on 2024

Tue, 17 Dec 2024 12:23:24 GMT

Dear StokFella Family,

As we approach the end of 2024, I am compelled to reflect on our transformative journey this year. It has been a remarkable demonstration of what we can achieve when we unite with shared purposes and dreams. A heartfelt thank you goes out to each of you who has saved, contributed, and engaged with us—your dedication is truly inspirational.

Celebrating Our Collective Achievements

This year has showcased the immense potential of collective effort and community engagement:

We've delved into how stokvels are revolutionising the way communities support each other, address unemployment, and empower women leaders.
We’ve seen stokvels innovate and adapt, with new forms like Community Patroller Stokvels and Small Business Stokvels, which focus on uplifting local economies.
We have helped more than 400 groups start their stokvel journey with StokFella.

StokFella’s Milestones in 2024:

We launched our WhatsApp assistant, Nomsa, ensuring that you have support anytime you need it.
We introduced StokFella Training Sessions, designed to equip you with the knowledge and tools for stokvel success.
We unveiled a new user interface, making your StokFella experience smoother and more intuitive.

Looking Forward to 2025

As we celebrate these milestones, we are already looking ahead. If you've been observing from the sidelines, let this be your call to action. The possibilities for growth and achievement are limitless when you engage with StokFella:

Consider starting your own stokvel or injecting new vitality into an existing one.
Utilise the resources StokFella offers to realise your financial aspirations.
Be part of the next wave of community transformation.

The Power of Community

To everyone who has contributed this year: your efforts have strengthened not only your financial foundations but also the fabric of our community. For those yet to begin, envision what you could achieve by joining this powerful movement. Let 2025 be the year you take that step forward.

Thank you for your trust, your participation, and your steadfast belief in our collective power. Together, we have forged something extraordinary, and together, we will reach new heights.

Wishing you and your loved ones a joyful festive season and a prosperous New Year brimming with opportunities for growth and success.

Together, we thrive.

Warmest regards,

Tshepo Moloi

CEO, StokFella

Ubuntu and Wealth: How African Community Values Shape Financial Behaviour - Letter from the CEO: Tshepo Moloi

Fri, 29 Nov 2024 15:17:02 GMT

Dear StokFella Community,

As Africans, we understand that wealth is measured not only by material possessions but also by the strength of our bonds with one another. Our cultural heritage is deeply woven into how our communities navigate life, work, and finances. At the heart of this lies Ubuntu, a philosophy that embodies shared humanity, interconnectedness, and community. Often summarised in the phrase, "I am because we are," Ubuntu extends beyond social relationships. It's a way of life that shapes how our communities make financial decisions and create wealth.

In my walk of life as StokFella CEO, I have witnessed Ubuntu in action every day through collective capital behaviour that fosters trust, accountability, and community wealth creation. Let's explore how Ubuntu influences our financial behaviour, why it makes African communities economically resilient, and the lessons it offers the world.

Putting the Community First

In many parts of the world, financial decisions are driven by individualism—the idea that success is an individual pursuit. Ubuntu, however, emphasises collective success. It prioritises the well-being of the community over individual gain.

This is why stokvels, chamas, susus, and informal savings groups remain integral to African communities. These systems are driven by a sense of shared responsibility. In a financial context, Ubuntu emphasises that lasting wealth is built upon the strength of the group. From a behavioural economics perspective, Ubuntu challenges traditional assumptions that humans act solely out of self-interest. Instead, it highlights the role of collective trust in shaping financial behaviour – as demonstrated in Matteo M’s¹ study which explores the strong connection between Ubuntu and social capital.

Trust as Social Capital

One of the defining features of Ubuntu-inspired financial systems is the trust that underpins them. In community capital, this trust is reinforced through formal agreements like constitutions or a memorandum of rules, which outlines the group's rules and member responsibilities. However, beyond these written agreements, social saving groups thrive on an additional layer of trust that is deeply personal and communal. This dynamic aligns with the Dunbar Rule, which suggests that to have strong meaningful and close relationships, trust is strongest within smaller groups of 15 people.

With bigger groups, this trust is cultivated over time through consistent participation, shared experiences, and the understanding that each member's success contributes to the group's overall strength. The Dunbar Rule also suggests that groups with a size of up to 150 members can still maintain effective social bonds, enabling social saving groups to function with minimal external enforcement while relying on mutual accountability and the shared goal of collective upliftment.

Resilience Through Unity

When economic hardship strikes, the spirit of Ubuntu shines through. If one member struggles, the others rally to provide support. This collective approach not only helps individuals but also strengthens the entire community.

This resilience is particularly crucial in today's uncertain world. From job losses to rising living costs, we have all felt the strain. Yet, the principle of Ubuntu shows us that by working together, we can overcome challenges that might seem insurmountable alone.

This is evidence in a social savings group that takes up income protection cover on their members behalf. These groups understand the lifeline of their existence is their member’s contribution and where most members depend on a secure salary to do this, taking up income protector insurance is critical survival of its goal.

Ubuntu drives long-term wealth creation. In many communities, stokvels are used to invest in property, education, and businesses—laying the foundation for opportunities that benefit the entire community and future generations.

What the World Can Learn from Ubuntu

As we face global challenges like inequality, distrust in financial systems, and social fragmentation, the world could benefit from embracing Ubuntu. By placing relationships, trust, and the collective good at its core, African communities offer a blueprint for building economies that thrive on collaboration.

For policymakers, financial institutions, and anyone seeking to create lasting change, Ubuntu offers a roadmap for rethinking wealth. It challenges us to move beyond models of individual success and focus on building systems that prioritise collaboration, equity, and trust.

Let's keep the spirit of Ubuntu alive, not just in our homes and communities, but in how we think about money, wealth, and the future we want to build.

Warm regards,

Tshepo Moloi

CEO, StokFella

¹ Matteo Migheli, "Ubuntu and Social Capital: a strong relationship and a possible instrument of socio-economic development" Cambridge Journal of Economics, Volume 41, Issue 4, July 2017, Pages 1213–1235, https://doi.org/10.1093/cje/bew070

Setting Up for Success in 2025: Why Now is the Best Time to Join or Start a Stokvel

Mon, 18 Nov 2024 10:31:38 GMT

As 2024 draws to a close, it's the perfect opportunity to lay the groundwork for a financially successful 2025. Joining or starting a stokvel can be a significant step towards achieving your financial goals. Stokvels, with their unique blend of collective saving, community support, and financial empowerment, are an ideal way to work towards your dreams together. Whether you're completely new to stokvels, familiar but haven't yet joined, or an existing member looking to start a new stokvel for different goals, here's why 2025 could be your year.

Why Join a Stokvel Now?

The power of stokvels lies in their ability to harness the strength of community. By joining forces with others, you can achieve financial goals faster and with greater support. Here are a few reasons why getting started now can make a difference:

Goal-Oriented Saving: Stokvels make it easy to save with a purpose. From investment stokvels for property ownership to grocery stokvels for monthly essentials, you can tailor your stokvel to meet specific needs. Starting now means you'll have a solid foundation come January.
Accountability and Support: One of the biggest challenges of individual saving is staying motivated. In a stokvel, the group provides accountability, keeping you on track and supporting each other. You'll have a team backing your goals as much as their own.
Higher Returns and Lower Risk: With a stokvel, you're pooling resources, which can open doors to investment opportunities that may be difficult to reach alone. Whether it's buying in bulk or pooling funds for higher return investments, stokvels reduce individual financial risk.
Access to Tools and Resources: Technology has made it easier than ever to start and manage a stokvel. Platforms like StokFella simplify everything from tracking payments to setting group rules, so you can focus on achieving your goals without the admin burden.

How to Join or Start a Stokvel for 2025 Success

If you're ready to take the leap, here's a simple step-by-step guide to get you started, whether you're joining an existing stokvel or starting one from scratch:

Define Your Goal: First, think about what you want to achieve with your stokvel. Are you looking to save for a particular purchase, grow an investment, or share monthly expenses?
Gather Like-Minded People: Reach out to friends, family, or colleagues who share similar financial goals. The best stokvels are built on trust and a shared commitment to the same outcomes.
Create a Stokvel Constitution: Every stokvel needs a set of rules to ensure organization and fairness. A constitution should outline contribution amounts, meeting schedules, payout terms, and other key details.
Register Your Stokvel on StokFella: Using a platform like StokFella can streamline your stokvel management. You can easily track contributions, payments, and even share updates with members. It's stokvel management made simple!
Stay Engaged: Once your stokvel is up and running, consistent engagement is key to success. Regular check-ins, progress updates, and transparent communication will keep everyone motivated and committed.

Make 2025 Your Year of Financial Empowerment

Starting or joining a stokvel is more than just saving money—it's about building a foundation of financial empowerment, trust, and community support. With the right mindset and tools, you can set yourself up for a successful 2025. So why wait? Take the first step today! Join a stokvel or start your own. With StokFella's support, you'll be well on your way to achieving your financial dreams, backed by the strength of your community.

How Stokvels are Tackling Unemploment - Letter from the CEO: Tshepo Moloi

Fri, 01 Nov 2024 09:53:13 GMT

Dear StokFella Community,

South Africa’s unemployment crisis transcends mere statistics—it represents a profound challenge affecting millions and the very fabric of our communities. As of the second quarter of 2024, our official unemployment rate stands at a staggering 33.5%, escalating to 42.6% when including those discouraged from seeking work. For our youth (aged 15 to 34), the scenario is even more dire, with an unemployment rate of 46.5%.

In these turbulent economic waters, stokvels—rooted in mutual aid and community investment—shine as beacons of hope. No longer just communal savings groups, stokvels are pivotal in driving economic participation, fostering entrepreneurship, and nurturing skill development.

Empowering Entrepreneurs and Small Businesses

Stokvels are pivotal in catalysing small business ventures by providing essential capital to those underserved by traditional financial institutions. From local grocers to aspiring agripreneurs, these businesses not only energise local economies but also create jobs, proving that community capital is a powerful force for economic growth.

Take, for instance, property stokvels that engage in property flipping by renovating and either reselling or renting out houses. In doing so, these stokvels often hire local builders, creating job opportunities in the construction industry. Additionally, they contribute to further employment by engaging local painters, electricians, and plumbers, thus amplifying their impact on the local economy and creating a ripple effect of opportunity and growth within the community.

Youth Empowerment through Entrepreneurship

With youth facing unemployment rates over 46.5%, it’s critical to provide avenues for empowerment. Stokvels dedicated to entrepreneurship offer not just capital but mentorship, helping young South Africans forge their paths, ignite local economies, and secure their futures.

Championing Financial Literacy and Skills Development
Financial acumen is a cornerstone of empowerment. Stokvels inherently educate members in financial stewardship, from budgeting to strategic investment. Many have formalised this education, offering workshops that equip members with skills to excel beyond the stokvel, enhancing their employability and entrepreneurial capabilities.

Fostering a Resilient Community Economy

Stokvels cultivate ecosystems of mutual support that extend beyond financial transactions—they weave a fabric of economic resilience that buffers communities against the ebbs and flows of the global economy. By investing in each other’s successes, we build an economy rooted in cooperation and communal strength.

A Sustainable Future Driven by Community

At StokFella, we are more than a platform; we are a community committed to turning the tide on unemployment through innovative financial collaboration. By embracing the power of stokvels, we not only address immediate financial needs but also lay down the groundwork for sustainable, community-driven economic development.

As we look to the future, let’s continue to harness the innovative spirit of stokvels to craft a resilient, inclusive economic landscape. Together, we can transform challenges into opportunities—creating a thriving economy that uplifts every member of our community.

Together, we grow. Together, we overcome. Together, we prosper.

Warm regards,

Tshepo Moloi

CEO, StokFella

Starting Small: Tips for Building a Community Vision

Fri, 18 Oct 2024 10:28:55 GMT

Creating a stokvel is more than pooling resources—it's about forging a community united by shared aspirations and values. Whether your stokvel begins with close friends or a wider circle, you're setting the foundation for an initiative that, with dedication and collective effort, can significantly impact both your members and the larger community. Here are some foundational steps for launching a stokvel, crafting a communal vision, and fostering something truly impactful for everyone involved.

1. Initiate with Like-Minded Individuals

The success of a stokvel hinges on the alignment of its members' values, goals, and visions. Whether your focus is on savings, investments, or mutual support, your stokvel will flourish with cohesive member goals. Here's how to ensure you bring the right people together:

Share Your Vision Early : Clearly articulate the purpose of your stokvel and its goals. This transparency will naturally attract individuals who share your vision.
Encourage Open Communication : Foster a culture where all members feel valued and heard, ensuring their beliefs align with the group’s objectives.
Cultivate Trust : Trust is the cornerstone of any stokvel. Members should be committed to the group’s success and adhere to its rules.

2. Clarify Your Vision and Purpose

A clear vision and defined purpose are the backbones of a successful stokvel. These elements guide your group's actions, maintain focus, and motivate members.

Vision Statement: This should articulate the long-term goals of your stokvel, serving as a motivational beacon for all members.
Example : "To empower each member through collective financial growth and sustainable investment practices."
Purpose Statement: This explains the day-to-day operations and the immediate mission that drives your stokvel.
Example : "To provide a supportive network for achieving personal financial milestones and fostering community development."

3. Establish Robust Leadership

Effective leadership is crucial for the smooth operation of your stokvel. Typically, roles like Chairperson, Treasurer, and Secretary are essential:

Chairperson: Guides the stokvel, ensuring alignment with the group’s vision and motivating members.
Treasurer: Manages finances, maintaining accurate records and overseeing transactions.
Secretary: Keeps detailed records of meetings and decisions, ensuring transparency and accountability.

4. Draft a Constitution

Your stokvel’s constitution acts as a foundational document that dictates its operations. This should include:

Financial Guidelines: Rules on contributions, penalties, and withdrawal conditions.
Leadership Structure: Procedures for handling transitions or changes in leadership.
Decision-Making Processes: How will the stokvel make decisions? What voting mechanisms will be used?
Member Responsibilities: Expectations for member conduct and participation.

5. Commit to Consistency

The strength of a stokvel lies in the consistent actions of its members. Regular contributions and active engagement are key.

Regular Contributions: Small, consistent savings can accumulate significantly, empowering larger group investments and support.
Community Engagement: Fostering a supportive atmosphere encourages stronger bonds and mutual assistance among members.

6. Plan for Future Growth

Consider how your stokvel will evolve. Strategies for recruiting members who align with your vision and adapting to growing financial goals are vital.

Recruitment Strategy: How will new members be integrated?
Financial Planning: What long-term investment strategies will you employ to ensure sustainable growth?

Starting a stokvel is an empowering step toward not only financial independence but also community development. With the right foundation, your stokvel can become a powerful tool for collective prosperity.

Ready to begin? Sign up with StokFella today and start shaping your community's future.

Stokvels and Education: Investing in Africa's Future - Letter from the CEO: Tshepo Moloi

Mon, 30 Sep 2024 08:00:03 GMT

Dear StokFella Community,

As I reflect on the profound impact stokvels have had on our society, it becomes clear that these communal savings systems are far more than financial safety nets—they are engines of transformation. In recent years, stokvels have evolved, with many shifting from short-term savings to long-term investments, particularly in education . At StokFella, we see the role of stokvels as integral to Africa’s future , not only enhancing financial literacy but also advancing educational access and, ultimately, development across the continent.

The Growing Role of Stokvels in Education

Education is the cornerstone of societal progress. According to a UNESCO report, Sub-Saharan Africa has the lowest literacy rate in the world , with only 65% of adults being literate . Additionally, Africa is home to 9 out of the 10 countries with the lowest literacy rates globally . The report indicates a clear correlation between education and economic growth. The World Bank also notes that each additional year of schooling raises an individual's income by an average of 10% , showcasing the undeniable link between education and prosperity.

However, access to quality education remains a significant challenge, primarily due to financial constraints. This is where stokvels step in. By pooling communal capital , stokvels are increasingly removing the financial barriers that have historically hindered access to education. Many stokvel groups now direct their savings toward educational funds, covering school fees, tertiary education, or skill development courses, ensuring that children from diverse socio-economic backgrounds can pursue education without financial strain.

Preserving Cultural Values Through Education

At StokFella, we believe in the synergy between our traditions and modern financial practices. Stokvels have always embodied collective responsibility and mutual support—principles that are key to our cultural identity. Today, education-focused stokvels reflect these values while embracing the financial strategies necessary for modern progress.

In these stokvels, women and men alike are promoting financial literacy, leadership, and civic responsibility within their communities. By managing their finances and investing in education, they are actively shaping the future of their communities—keeping our traditions alive, while preparing the next generation to tackle tomorrow’s challenges.

Long-Term Benefits for Community Development

The influence of stokvels stretches far beyond immediate financial relief. Many stokvels are facilitating bursaries, informal savings plans for education, and investments in local infrastructure that directly improve access to education. These initiatives nurture skilled workforces and drive economic development—key factors for long-term social and economic growth.

Stokvels are also a practical educational platform in themselves. By managing savings and planning for school fees or development projects, members learn valuable skills in budgeting and financial management. These are lessons that can sustain families for generations and form the foundation of community-wide financial literacy.

A Future-Focused Legacy

Looking ahead, it's clear that stokvels have and will continue to become essential tools for investing in the next generation. At StokFella, we see firsthand how stokvels are creating a lasting legacy of empowerment and resilience. These investments in education are building stronger communities, capable of taking on future challenges with confidence.

As we continue to work together, I am proud of the progress we are making. Stokvels are more than a reflection of our past—they are a critical force for the future. Through education, they not only preserve cultural values but position Africa’s people for a prosperous tomorrow.

Let’s continue to harness the power of the collective, the power of stokvels, to build a future of opportunity for all.

Warm regards,

Tshepo Moloi

CEO, StokFella

Empowering Women Through Stokvels: A Step Towards Gender Equity

Fri, 20 Sep 2024 11:06:34 GMT

Stokvels, a cornerstone of African communities, have long facilitated collective saving and resource sharing. At StokFella, a leading digital stokvel platform, we've observed a transformative shift: stokvels are not only empowering women financially but also promoting gender equity across African societies. Women are not just participants but leaders, driving innovation and success in the stokvel sector.

Celebrating Transformative Leaders

This August, we celebrated the achievements of Della and Selina, two remarkable women whose journeys through stokvels exemplify strength, leadership, and innovation. Their success stories illuminate the evolving role of stokvels—from traditional savings groups to dynamic platforms for investment and entrepreneurship.

Financial Independence

Stokvels offer women a community-based financial solution, allowing them to pool resources and access significant capital for pivotal investments like education, business startups, or property acquisitions. Through involvement in stokvels, women on our platform gain crucial financial autonomy, propelling them toward true gender equity.

Leadership Roles

Women in stokvels often ascend to pivotal roles—founders, treasurers, or decision-makers—gaining invaluable financial management experience and networking opportunities. At StokFella, we've seen that stokvels led by women not only thrive but also expand their scope to include sectors like real estate and business investments, paving the way for sustained wealth creation.

Championing Gender Equity

The financial liberation achieved through stokvels empowers women to make independent economic and personal decisions, challenging traditional gender roles and societal norms. Investment and property stokvels, particularly those led by women, are redefining potential, focusing on long-term wealth creation and economic development.

Future Outlook

The narratives of Della, Selina, and many others reflect the profound impact of stokvels as catalysts for societal transformation. StokFella remains dedicated to nurturing this growth, supporting women-led stokvels as they forge paths to a more inclusive and equitable future.

Women-led stokvels demonstrate that with appropriate support and resources, the opportunities are limitless. From property investments to entrepreneurial ventures, women in stokvels are laying the groundwork for a more inclusive and prosperous society. At StokFella, we are honored to support this journey towards a future where financial security and gender equity are accessible to all.

Celebrating Women Leaders in Stokvels: A Spotlight on Selina

Fri, 30 Aug 2024 09:54:37 GMT

In the vibrant world of stokvels, where community-driven savings and financial empowerment take center stage, women have always played a pivotal role. As we honor Women’s Month, we celebrate the stories of women who are not just participants in stokvels but leaders who drive their groups toward shared success and financial stability.

Today, we shine the spotlight on Selina Mitchell, a dedicated stokvel leader who exemplifies the strength and resilience of women in this space.

Why Are Stokvels So Powerful?

For Selina, the strength of stokvels lies in the discipline they instill in their members. She explains, “Stokvels are powerful because members are disciplined to save a certain amount of money each month. The money is used to help members meet their financial needs.” This collective discipline ensures that everyone in the group benefits, whether it’s for paying school fees, renovating homes, or investing in future goals.

Selina’s Journey in Stokvels

Selina’s journey in the world of stokvels began just two years ago, but her impact has been significant. Despite being relatively new to the scene, Selina quickly rose to a leadership position. Her experience underscores the idea that leadership in stokvels isn’t necessarily about longevity—it’s about commitment, vision, and the ability to guide others.

Her Leadership Approach

Selina’s approach to leadership is grounded in the principle of leading by example. “Leading a stokvel group comes with challenges, both positive and negative. Being a leader of a group of people is beneficial if the leader leads by example. Leading by example is a powerful form of leadership,” she says. To ensure success, Selina works closely with her group members, making decisions collectively and ensuring that everyone knows what is expected of them. This collaborative approach has been key to the success of her stokvel, fostering a strong sense of unity and purpose among its members.

A Message to Aspiring Women Leaders

For women considering starting their own stokvels, Selina’s advice is simple yet profound: “Look for like-minded people who have the same vision and goals.” Building a successful stokvel begins with finding individuals who share your commitment and aspirations. When everyone is aligned in their goals, the group can work together more effectively, overcoming obstacles and achieving their financial objectives.

Selina Mitchell’s journey as a stokvel leader is a powerful example of how women are leading the way in stokvels, using their skills, determination, and collaborative spirit to uplift themselves and their communities. Her leadership approach, rooted in discipline and collective decision-making, highlights the importance of unity in achieving financial goals. As Women’s Month draws to a close, let’s take inspiration from Selina and the many other women who are making a difference through stokvels, proving that when women lead, entire communities benefit.

Celebrating Women Leaders in Stokvels: A Spotlight on Della

Fri, 16 Aug 2024 13:01:42 GMT

As we commemorate Women’s Month, it’s essential to highlight the remarkable women who are not only participating in stokvels but leading them with vision, strength, and resilience. Stokvels have long been a cornerstone of financial empowerment in South Africa, especially for women who have used these community-based savings groups to achieve collective goals, support one another, and build a brighter future. This month, we’re shining a spotlight on some of the incredible women who are making a difference in their communities through stokvels.

One such leader is Della Ngwane, a dedicated and inspiring figure in the stokvel community. Her journey is a testament to the power of collective effort, faith, and leadership.

Why Are Stokvels So Powerful?

For Della, stokvels are more than just financial tools—they are the backbone of the economy. She explains, “Stokvels are the hub of the economy. The model of pooling funds together to achieve financial goals is what makes them so powerful.” This collective approach not only helps individuals reach their financial objectives but also fosters a sense of community and shared responsibility.

Della’s Journey in Stokvels

Della’s journey with stokvels began in 1999, when her late aunt introduced her to a women’s stokvel group focused on beautifying and renovating homes. Over the years, Della’s involvement deepened, and she has now been in a leadership position for the past four years. Her experience has equipped her with the knowledge and skills to guide her group towards success, all while nurturing a supportive and collaborative environment.

Her Leadership Approach

Leading a stokvel requires a unique blend of transparency, collaboration, and spiritual guidance. Della’s approach is rooted in these principles. “Transparency, collaboration, and prayer guide me. I know it’s not mine—it’s OURS, is my MANTRA” she says. Della emphasises the importance of working together and drawing on the strengths of her team. “I’ve been blessed with a skilled executive team that complements my leadership. I commit my plans to the Lord and work together with my team in everything we do.” This approach has not only made her leadership role easier but has also fostered a strong, united group.

A Message to Aspiring Women Leaders

Della’s advice to other women considering starting a stokvel is clear and empowering. “Have a clear vision, be patient, and seek guidance. Equip your members and collaborate with other women in stokvels. As Kofi Annan said, ‘When women thrive, all of society benefits, and succeeding generations are given a better start.’ The time of working in silos is over—together, we can achieve greatness!”

Della’s story is a powerful reminder of the impact women can have when they lead with purpose and unity. Her leadership in the stokvel community is not just about managing funds but about building a legacy of empowerment, collaboration, and shared success. As we celebrate Women’s Month, let’s continue to uplift and support the incredible women who are driving change in their communities through stokvels. Their stories inspire us all to strive for greatness and to work together to build a better future.

Innovation in Stokvels: Adapting to a Changing World

Tue, 16 Jul 2024 13:41:22 GMT

Stokvels have long been the foundation of community-based financial management. Traditionally, they were primarily focused on helping members save for specific purposes such as purchasing groceries in bulk for the December holidays, funding social events or covering emergency expenses. These communal savings groups relied on the collective effort of their members to pool resources and achieve common financial goals. As the world around us changes rapidly due to economic shifts, technological advancements and social transformations, South Africans are increasingly seeing stokvels as a great way to build wealth using the power of the collective.

Here’s how these communal savings groups are innovating to adapt to the new landscape:

Embracing Digital Transformation
One of the most significant changes in recent years is the shift towards digital platforms. Stokvels, which historically relied on manual record keeping and traditional banking institutions, are seeing the benefits of digital tools to streamline their operation. Platforms like StokFella offer digital solutions that help manage contributions, payouts and member communications efficiently. By leveraging technology, stokvels can ensure transparency, security and ease of access for all members.

Diversification of Investment Strategies

Stokvels have traditionally been used for saving and buying groceries or household items in bulk. Now we are seeing a growing trend of stokvels exploring diverse investment opportunities to grow their funds. The rise in property, franchise and investment stokvels shows us that our community sees that these opportunities can provide greater financial security for their members.

Financial Education and Empowerment

Financial literacy is crucial for the sustainability and growth of stokvels. Innovative groups are focusing on educating their executives and members about various aspects of finance, including budgeting, investing and managing debt. Empowered with knowledge, members can make informed decisions that benefit both themselves and the group.

Adapting to Social Change

As our society evolves, stokvels are also adapting to meet the needs of their members and communities. Stokvels are focusing on social causes, such as community development and charitable initiatives, reflecting a broader purpose beyond financial savings.

Enhancing Member Engagement

Innovative stokvels understand the importance of keeping members engaged and motivated. This can be achieved through regular communication, member recognition and providing value—added services. Engaging members in meaningful ways ensures their continued participation and loyalty.

Utlising Data Analytics .

The use of data analytics is another innovative approach being adopted by modern stokvels. By analyisng contributions, withdrawals and other financial behaviours, stokvels can identify trends and make data-driven decisions. This helps in optimising savings plans, understanding member needs and improving overall efficiency.

Stokvels have a rich history and a vital role in South African communities. By embracing innovation and adapting to changing economic and social landscapes, South Africans are recognising the potential of stokvels as a powerful tool for wealth building. The future of stokvels lies in their ability to balance tradition with modernity, ensuring they remain a resilient and dynamic force in community finance.

Ready to innovate your stokvel?

Sign up with StokFella today and take your stokvel to the next level! Contact us for more information and learn how to bring innovative solutions to your stokvel. Don’t miss out on our exclusive training sessions designed to empower and equip you with the tools you need to succeed, email us at support@stokfella.com to find out when our next session will be.

Digital Stokvels: The New Frontier of Collective Saving

Fri, 31 May 2024 14:17:58 GMT

In today's fast-paced digital age, traditional methods of managing stokvels are evolving rapidly. For generations, stokvels have been a cornerstone of community savings and investment in South Africa, offering members a way to pool resources for mutual benefit. However, the rise of digital platforms like StokFella is revolutionising this age-old practice, providing enhanced security, convenience, and transparency. Let's explore how digital stokvels are reshaping the landscape of collective saving.

The Evolution of Stokvels

Historically, stokvels have provided a way for communities to pool their resources, offering members a chance to save money, support each other financially, and achieve common goals. These traditional stokvels, although effective, often involve administrative challenges, security risks, and logistical hurdles.

Enter the digital stokvel. Platforms like StokFella are modernising this age-old practice, making it safer, more transparent, and more convenient for everyone involved.

Why Digital Stokvels are Gaining Popularity

The transition from traditional to digital stokvels is driven by several key benefits:

1. Safety and Security for Money:

One of the primary advantages of using digital stokvel platforms is the enhanced security they offer. With StokFella, members' funds are securely stored and managed through encrypted systems, significantly reducing the risk of theft or fraud that can occur with cash-based contributions.

2. Data Safety and Transparency:

Digital platforms ensure that all transactions are recorded and easily accessible. Members can view their balances, contributions, and overall stokvel performance at any time. This level of transparency helps build trust among members and simplifies the auditing process.

3. Ease of Administration:

Managing a stokvel traditionally involves significant paperwork and administrative duties. StokFella streamlines these processes by automating record-keeping, member management, and financial tracking. This reduces the administrative burden and allows for more efficient operation.

4. Flexibility and Convenience:

Gone are the days of standing in long bank queues to open accounts or make contributions. With StokFella, members can make payments, create new stokvels, and manage their savings from anywhere, at any time. This flexibility is especially beneficial in today’s fast-paced world where convenience is key.

5. Multiple Stokvel Memberships:

StokFella allows members to participate in multiple stokvels simultaneously without the hassle of managing different groups separately. This feature is ideal for those who wish to diversify their savings goals or belong to various social circles.

6. Easy Claims:

Claiming from a stokvel traditionally requires physical visits to the bank and dealing with cumbersome paperwork. Digital platforms simplify this process, allowing members to submit and process claims quickly and efficiently without leaving their homes.

Traditional Methods Meet Modern Digital Ways

The blend of traditional stokvel values with modern technology is where the true magic happens. Digital platforms like StokFella preserve the communal and supportive nature of stokvels while enhancing their functionality with 21st-century technology. This integration ensures that stokvels remain relevant and attractive to both existing and new members.

For an in-depth look at how traditional methods are merging with modern technology, check out this insightful article on Traditional Methods Meet Modern Digital Ways As Stokvels Take Advantage Of 21st-Century Tech

Real-Life Success Stories

Many stokvel groups have already experienced the transformative power of going digital. For instance, a stokvel in Johannesburg transitioned to StokFella and saw a significant reduction in administrative errors and improved member satisfaction due to the platform's transparency and ease of use.

Another group in Cape Town reported enhanced security and peace of mind knowing that their funds were securely managed, eliminating the fear of theft or loss associated with cash handling.

Join the Digital Revolution with StokFella

The rise of digital stokvels marks a new frontier in collective saving, blending the best of traditional practices with the benefits of modern technology. If you’re part of a stokvel or considering joining one, now is the perfect time to explore the advantages of going digital.

By embracing digital platforms, stokvels can ensure they continue to thrive and provide value to their members in the digital age. With enhanced security, transparency, and convenience, digital stokvels represent the future of collective saving.

Strengthening Stokvel Security: We welcome CODI - Message from Tshepo Moloi, CEO, StokFella

Thu, 02 May 2024 11:56:18 GMT

Dear StokFella Members,

I'm excited to share important news regarding the security of your stokvel savings. The South African Reserve Bank has recently launched the Corporation for Deposit Insurance (CODI), a significant initiative designed to protect depositors' funds.

What CODI Means for You

CODI provides much-needed reassurance for your stokvel. Each qualifying member is now eligible for up to R100,000 coverage per bank. This means in the unlikely event of a bank facing difficulties, your hard-earned contributions are protected. This introduction of CODI represents a major step forward in strengthening the South African financial landscape.

The StokFella Advantage

Our commitment to safeguarding your funds has always been a top priority. With CODI, our existing StokFella insurance is further reinforced, providing each member with dual layers of protection. This collaboration signifies our dedication to maximising the security of your financial contributions.

Commitment to Transparency

At StokFella, we share CODI's belief in transparency. Their Deposit Insurance Fund, supported by contributions from banks, ensures a fair and equitable system. Additionally, a robust regulatory framework is in place to guarantee smooth and reliable operations.

Looking Ahead

The introduction of CODI enhances South Africa's financial stability, aligning us with global standards. For StokFella members, this translates to increased confidence in our platform and greater peace of mind as you work towards your collective financial goals.

Let's celebrate this positive development for our stokvel community!

Sincerely,

Tshepo Moloi
CEO, StokFella

Unlock Your Stokvel's Potential with the Sanlam Leruo Enterprise Development Programme

Mon, 29 Apr 2024 14:26:09 GMT

Are you part of a stokvel looking to solidify its foundation, enhance financial knowledge, or expand investment opportunities? Look no further! We're thrilled to introduce the Sanlam Leruo Enterprise Development Programme, a game-changer in the realm of stokvel empowerment.

This innovative programme is tailored to meet the unique needs of stokvels, offering a comprehensive range of support, mentorship, and funding opportunities. From reviewing founding documents to developing a strong brand identity, the programme covers every aspect crucial for stokvel success.

One of the key highlights of the programme is its focus on providing tailored training and mentorship to deepen investment and savings knowledge. Stokvels participating in the programme can expect expert guidance and support to make informed decisions and maximise their financial potential.

Moreover, the programme is open exclusively to stokvels in Gauteng Province that meet specific criteria, ensuring a targeted approach to empowerment. With a strong emphasis on business development support, the programme aims to fuel the growth of stokvels and empower them to thrive in today's economy.

Don't let this opportunity pass you by! Apply now for the Sanlam Leruo Enterprise Development Programme through StokFella and embark on a journey towards financial empowerment and sustainable growth for your stokvel. Together, let's unlock your stokvel's full potential and pave the way for a prosperous future.

Join the Movement: How StokFella Facilitates Community Transformation

Fri, 01 Mar 2024 14:39:11 GMT

In the vibrant world of community savings, stokvels have always been more than just financial groups. They're the heartbeats of communities, where trust, support, and shared dreams thrive. As agents of change, stokvels have the power to transform lives, pooling resources to uplift not just individual members, but entire communities.

Today, in the unfolding digital era, it's time for stokvels to embrace a new ally: StokFella. More than just a digital tool, StokFella is a movement dedicated to empowering communities and ensuring financial transparency. Let's explore how StokFella is revolutionizing stokvels and catalysing community transformation.

Streamlined Operations for Empowered Communities

Managing finances and administrative tasks can be daunting for stokvels. StokFella changes the game by offering a centralized platform for easy contribution tracking and financial management. With StokFella, the days of manual record-keeping are over. Our platform automates these processes, liberating your time for what truly matters - nurturing your community's growth and aspirations.

Security for Your Peace of Mind

Security is non-negotiable when it comes to your finances. StokFella ensures that your contributions and personal data are safeguarded with the highest security standards. Our platform's diverse payment methods, including credit cards, EFTs, and retail store payments, mean you can contribute without the risk of carrying cash.

Amplifying Your Impact

StokFella's digital capability isn't just about efficiency; it's about amplifying your stokvel's impact. Our platform enables you to set bold goals, make informed decisions, and track your journey towards achieving them. It's about transforming your aspirations into tangible outcomes.

A Catalyst for Collective Growth

At its core, StokFella stands as a beacon of collective growth and support. By enhancing transparency and streamlining operations, we help stokvels focus on their ultimate goal: empowering each other to reach financial freedom and realize dreams.

Join the StokFella Movement

Embracing StokFella is more than just stepping into the digital age; it's about being part of a larger vision – a vision where community transformation and financial empowerment go hand in hand. It's about joining a movement that redefines the essence of stokvels.

Be a part of this transformative journey. Join StokFella today, and let's together unlock endless possibilities for financial empowerment and community growth. Together, we're not just building a platform; we're building a brighter, more inclusive future for stokvels everywhere.

Ready to be part of this transformative journey?

Join us now! Visit StokFella's website and start your journey towards financial empowerment and community transformation. Let's shape a future where financial security and community support know no bounds.

Stokvels: The Network That Can Transform Your Life

Fri, 09 Feb 2024 08:24:05 GMT

Unlocking the Power of Community: Why You Should Join a Stokvel

Ever wondered how to amplify your financial potential while strengthening community bonds? Stokvels are not just savings groups; they are dynamic networks offering both financial and social benefits. Joining a stokvel means you're not just saving; you're investing in a community that grows together. It's about being part of something larger than yourself, where collective goals and shared successes define progress.

Why Are You Missing Out?

If you're not in a stokvel, you're missing out on more than just savings. You're losing the chance to be part of a powerful social network that transforms lives. Stokvels offer a unique blend of financial growth and community support. They are spaces where individuals not only build wealth but also forge lasting relationships. In a stokvel, every contribution counts, and every member is valued.

A Life-Changing Decision: The Impact of Joining

Imagine being part of a group where your financial contributions help not just you, but your entire community. Stokvels make this possible. They are about pooling resources for greater impact – whether for investment, tackling large-scale projects, or aiding in times of need. By joining a stokvel, you're stepping into a role that extends beyond individual gain to communal upliftment.

Don't Just Watch – Participate!

Stokvels are calling you to be part of a transformative journey. It's a journey that promises not just financial gains but also the chance to be part of a supportive, thriving community. The question isn't just 'why join a stokvel?' but 'why would you choose not to?' Embrace the opportunity to grow, connect, and make a lasting impact. Don't let fear of missing out become a reality – join a stokvel today and be part of a network that changes lives.

Letter from StokFella CEO - Tshepo Moloi

Wed, 24 Jan 2024 07:37:02 GMT

Dear StokFella Family,

As we step into this new year, it's a time to embrace the power of unity and the strength of our collective dreams. At StokFella, we're more than a platform; we're a community united by a shared vision of transforming our lives and the lives around us.

This year, our focus is clear: to unite, to save, and to transform. Through the simple, yet profound act of saving together, we have the power to shape our communities - one graduate, one home, one business at a time.

Our campaign, #PlayYourPart, is an invitation to you – our valued members and champions of change – to join this movement. It's a call to come together, to contribute what we can, and to be part of a greater force that has the power to uplift and empower.

The journey of transformation begins with a single step. Whether it's rethinking the mission of your existing stokvel or starting a new one on our platform, every action counts. Every member brings something unique to the table, and every contribution adds to our collective strength.

We are here to support you, to guide you, and to celebrate with you as we journey towards our shared goals. Your dreams, your aspirations, and your efforts are what drive us forward.

So, let’s start where we are, with what we have, and build towards a future filled with hope and prosperity. Together, let’s make 2024 a year of impactful change, one community at a time.

Join us, bring your part to the pool, and let’s make history together. Your role in this story is crucial, and we can't wait to see the incredible things we will achieve together.

#PlayYourPart

With unity and determination,

Tshepo Moloi

CEO, StokFella

How to tell the difference between good and bad debt

Tue, 24 Oct 2023 12:30:55 GMT

How to tell the difference between good and bad debt

Debt can feel like a weight on your back when you have more to repay than what you earn, however not all debt is bad. In fact, having no debt (no credit record) could actually count against you when it comes to applying for a personal loan, home loan or vehicle finance for example.

This is why managing your debt and knowing the difference between good and bad debt is important. Proper debt-management could help improve your life, your credit score and ultimately even help you create wealth (if you work wisely with what you borrow and use it to make more money).

This is where the concept of good debt vs bad debt comes into play.

Good debt takes you forward financially

So, what is good debt? Good debt is an investment in your financial future. It helps to create a firm foundation and could even help improve your future earning potential. Before taking out a loan and going into debt, ask yourself these questions first:

Is this the most affordable loan/option available to me?
What is the interest rate? (Lowest interest rates are not always the best option – sometimes a low interest rate comes with high charges at the end of the term, so do your research first.)
What are the repayment terms? Can I really afford it?
What are the charges, including hidden charges?

Some examples of good debt are home loans, student loans and business loans. However, there are no guarantees and you should always be cautious when going into debt, especially in South Africa’s current economic climate. For example, paying off your student loan might be difficult if you’re unable to secure full-time employment.

Bad debt adds stress to your financial situation and slows down your progress

Bad debt is often associated with impulse purchases. If you are in the habit of buying day-to-day items such as foods and disposable products, or paying your daily bills using credit, it can very quickly lead you into a situation where you are overcome by bad debt. A few examples of bad debt are:

Using your credit to purchase luxury items that you can’t really afford.
Taking out one-month loans from unregulated institutions to finance an immediate need.
Buying clothes and other items on clothing store accounts (which usually have very high interest rates).

Grey area

Too much debt, whether it’s “good” or “bad”, can quickly add up. If not managed properly, even good debt can become bad debt and may even lead to forced debt counselling. Below are a few grey areas:

Credit cards can be used to finance large expenses and there’s no doubt that they can be useful, as long as you pay off the balance each month. However, credit cards also often come with a high interest rate and you could be in trouble if you allow it to build up.

Vehicle finance can be good or bad debt. If you need a car to help you earn income and you can manage the monthly repayments, as well as associated costs like insurance and petrol, vehicle finance would be good debt. However, a new car loses value as soon as you drive away in it, so it is wise to rather consider buying a demo model or a used car. Whatever you decide, make sure it fits into your monthly budget.

Borrowing money to get out of debt is not usually a good decision. However, consolidating your debt can sometimes be a simpler way to manage your money when your goal is to regain financial stability.

One of the trusted ways for South Africans to borrow money traditionally has been from their stokvels. This could be for any number of reasons and now StokFella is bringing you the option to stokvels in a seamless, easy way that will save you money, provide transparency and ultimately create more wealth for your stokvel club in the long run. With just good saving behaviour, your stokvel can qualify for a loan of R1000 to R250 000 when it saves with a Nala Club Account on StokFella. Plus your stokvel earn income from your loan. Why borrow money from a bank when you can borrow it from your own “bank”?

Get in touch with us today if you would like to know more.

StokFella is a licensed FSP 48812 and Credit Provider NCRCP12735 T & Cs Apply

How to check your credit score and why it matters

Tue, 24 Oct 2023 12:23:54 GMT

When you apply for any form of credit or a loan, credit providers use a report generated by the Credit bureaus to evaluate whether or not you will be a good candidate to lend money to depending on the credit score given to you by the credit bureaus. The terms of the credit (interest rate, amount etc.) are based on this risk profile.

The usual risk factors when borrowing money such as: do you have a steady income, what is your monthly fixed expenditure and do you have any other financial security such as assets will still play a role in determining whether you qualify or not and for how much, when applying for credit even though you may have a good credit score.

A credit report contains information on your credit history and financial dealings. It shows how you have handled debt in the past, how much you borrowed and from whom and if you repaid it on time and whether or not you stuck to the terms and conditions of the deal.

Everyone in South Africa is, by law, entitled to a free credit report once a year. The credit bureaus are obliged to provide it when asked for one, but should you request a second report in the same year, you will then be asked to pay a fee. You can use one of the following sites to get your free annual credit report: https://www.mycreditcheck.co.za/ or
https://www.transunion.co.za/assistance/free-credit-report or
https://compuscan.co.za/my-free-credit-check-your-free-credit-report/

Credit providers use different scoring methods but usually the score range range is between 330 and 830. Above 750 is an excellent score and the applicant should easily obtain credit on the best terms.

If you have no history of unpaid debt, a good salary and perhaps some savings or assets as security, you should not worry too much about a credit score. People with no credit history (no loans, no credit cards, cell phone or other accounts) will of course have no credit reports.

When should you check your credit score?

If you’re intending to apply for a substantial loan (for instance to buy a house or a car) it might be a good thing to check on your credit report/score. (Use one of the links mentioned above)

Be aware that although unlikely, your report may contain errors. Checking your score before applying for credit gives you the opportunity for any such errors to be rectified before getting an unpleasant surprise when your application for a loan is rejected because of an incorrect credit report based on wrong information.

At StokFella, we make credit available to stokvels from R1000 up to R250 000 with a Nala Club Account and your stokvel earns income from your loan. Why borrow money from a bank when you can borrow it from your own “bank”?

Get in touch with us today to find out more.

StokFella is a licensed FSP 48812 and Credit Provider NCRCP12735 T & Cs Apply

Innovative Finance and Business Models for SMEs

Tue, 24 Oct 2023 12:16:10 GMT

Small and medium sized enterprises (SMEs) and entrepreneurs are often heavily reliant on traditional debt to fulfill their start-up, cash flow and investment needs. Debt and equity are however, traditional tools that have needed to be tweaked in order to better meet the needs of the end-users: the SMEs.

Debt

This is money loaned to an organisation that must be repaid. Just like a normal bank loan made to a business or individual, the investor aims to get their money back plus interest.

Equity

This is providing working capital (ie. funding) to an organisation in exchange for a portion of ownership of the organisation. This can be thought of as shares of the company. The appeal for the investor is that if the company makes a profit, then so too does anyone with a portion of equity. The investor can also sell their shares later for profit.

Grants

This is the traditional donations-style support, where money is simply given to the organisation. The investor doesn’t expect to get it back, they have no expectation of financial return (profit), only expectations of social return (impact).

In the past, access to these traditional tools has been limited or restrictive to say the least for small to medium business owners but fortunately, the landscape is shifting and statistics on micro finance in sub Saharan Africa shows us that the rise of digital and mobile banking in particular, are making the greatest mark.

Adult population without access to financial services: 80%
Adults who send or receive domestic remittances: 48%
Credit taken from family and friends vs. a formal finance institution: 41% vs 6%
Active depositors: 16.5 million
Active borrowers: 6.5 million
Adults with a mobile money account: 12% vs 2%
40% of Africans own a mobile phone, and Africa leads in the development of mobile banking services, with 64 million subscribers using mobile payment services

Shifting the System

With the onward push of technology and greater creativity being exercised by investors and SMEs seeking funding alike, we’ve seen shifts in the system coming into play. Some of these include:

Blended Finance

Blended Finance is a development finance model that combines concessionary loans or grants, usually provided by the public sector, with private investment. It aims to alleviate the development funding constraint by de-risking investments into the sector and directing more private capital towards projects or geographies that would otherwise be perceived as too risky for traditional investors.

Peer to Peer Lending

Peer-to-peer lending (P2P lending) is an alternative financial service that involves lending money directly to peers, or unrelated individuals, without the intermediary assistance of a bank or financial institution. As a form of social fundraising, peer-topeer lending allows fundraisers to cut out the middleman and appeal to their target audience directly. Most peer-to-peer loans are unsecured (not backed or guaranteed by assets), meaning more people can access them, and can provide borrowers with better terms than they typically would get elsewhere. P2P lending services normally operate in online marketplaces, which bring together lenders and borrowers. These marketplaces also provide additional services to facilitate lending,such as credit verifications, lending models and payment processing.

Social Fundraising and Crowdfunding

For as long as church bake sales and charity carwashes have been around, social fundraising has permeated societies across the world in many different forms. Communities and individuals often unite around a specific cause or event, and pursue creative means of fundraising to achieve a related set of objectives. Since then, numerous other platforms have emerged, as the social fundraising sector continues to grow. The world’s largest funding platforms are Kickstarter and Indiegogo, along with Seedrs and Crowdfunder, all founded between 2007-2011. In Africa, crowdfunding platforms include Kiva, an international platform, and Thundafund and StartMe, both based in South Africa. These crowdfunding business models often vary in terms of repayment: some models utilise “rewards” (products or services) as compensation, while others use interest-bearing or equity structures to compensate investors.

Diaspora Funding Platforms

The African diaspora is a largely untapped resource for development finance purposes. When referring to the African diaspora, it is important to remember that these are people living in a community outside their shared country of origin who still maintain strong ties to their homelands or ancestral communities. These complex and ever-changing communities typically manifest the strong desire to invest back home. Diaspora funding platforms were thus developed to provide a way for the diaspora to invest impactfully in their home countries. Diaspora funding platforms, typically set up as online portals, provide effective and efficient avenues to connect diaspora to investment opportunities, providing a structured, transparent and reliable way for the diaspora to invest in worthy ventures back home.

Outcomes Based Funding

An outcomes based contract is an agreement between a funder and service provider whereby payments are contingent on the achievement of pre-agreed, measurable outcomes. This stands in contrast to a traditional contracting where funding is based on inputs and activities regardless of whether outcomes are achieved or not. These funders are typically governments, country donors, multilateral institutions and philanthropic foundations. The benefits would include paying only for what works which means that all stakeholders work intentionally and collaboratively toward that end. Learning is accelerated with short feedback loops and wasteful expenditure minimized. Instead of being tied to a set of inputs service providers are able to adapt their programmes according to real time data leading to bottom up innovation. It also drives down costs as providers, being assessed on the same basis, can create efficiencies within their own delivery models to outperform the competition

Group Savings and Investment (stokvels)

A stokvel is a savings or investment society to which members regularly contribute an agreed amount and from which they receive a lump sum payment. There is a typical misconception in South Africa today that stokvels are a finance tool used mainly by those in a lower income bracket. The 2017 Old Mutual Savings and Investment Monitor, however, shows that there’s been an 11% increase in stokvel members among those earning R40 000 per month or more, from 46% in 2009 to 57% in 2017.This means that stokvels are progressing steadily from “…villages to cities, from money under mattresses to savings accounts” and now, increasingly from mere savings to instruments of investment.

So where to from here, Entrepreneur?

Although ground breaking work has been done in the innovative financing space for decades, it does seem as though we are at the beginning of a journey. If you’re uncertain of where to go from here, here are a few suggestions:

Speak to your peers
Get professional advice and training if need be
Consult with stakeholders
Become part of a network of similar entities innovating in this space
Identify outcome areas that would be good pilots for innovative financing
Try – fail – try again

*Extracts taken from the Innovative Finance in Africa Review produced by the UCT GSB Bertha Centre for Social Innovation & Entrepreneurship with the support of the Flanders Government

3 Ways to Take Your Stokvel From Savings To Investment

website@sitemodify.com (Website Editor) — Tue, 24 Oct 2023 10:30:15 GMT

You have a stokvel group and the group accountability has been a useful tool for saving money and you’ve enjoyed the social elements of engaging with like-minded individuals while you work towards your financial goals. But have you considered how your stokvel could become an investment engine for you and your family through moving away from ‘savings only’ and moving more towards an investment focused tool that actually grows your money?

There is a typical misconception in South Africa today that stokvels are a finance tool used mainly by those in a lower income bracket.

The 2017 Old Mutual Savings and Investment Monitor , however, shows that there’s been an 11% increase in stokvel members among those earning R40 000 per month or more, from 46% in 2009 to 57% in 2017.

This means that stokvels are progressing steadily from “…villages to cities, from money under mattresses to savings accounts” and now, increasingly from mere savings to instruments of investment.

As a stokvel member, you want to ensure that you get the most out of your modern savings solution and means needing to grow your money. Here are 3 key things to keep in mind when moving your stokvel from a savings vehicle to becoming an investment engine:

1. Get the right advice

Start with people you trust and who have a proven track record and expertise in finance. If you want to stay on track and reach your goals with your money, this is critical. Someone with the right expertise will help you and your stokvel group to create a savings and investment strategy that will take you further on your #wealthbuildingmadesimple journey.

3. Empower your members

Knowledge is power. Knowing which investment solution to go for and what kind of returns to expect is part of financial education. Stokvel workshops with reputable industry-players like StokFella will go a long way to enhancing the financial literacy of your members and ensuring that they all play an active role in achieving the groups’ overall goals.

To find out more about the award-winning stokvel solution offered by StokFella and how to get started, visit www.stokfella.com/faqs and keep an eye on our social media channels for details of our upcoming workshops in an area near you.

The 2017 Old Mutual Savings and Investment Monitor, however, shows that there’s been an 11% increase in stokvel members among those earning R40 000 per month or more, from 46% in 2009 to 57% in 2017.

2. Find ways to get more out

You and your stokvel need to prioritise returns as much as you do savings. If members are not getting more out of their investments, then they might as well be saving money under a mattress. How can you cut down on transaction fees and other costs? (Did you know for example, that by transacting on the StokFella platform, you will be paying lower fees than you would with any of the leading SA banks?) How can you choose the best investment products to suit your stokvel’s needs and appetite for risk? Perhaps you don’t know the answers to these questions. That brings us to the important point number 3…

5 ways to manage your debt

website@sitemodify.com (Website Editor) — Tue, 24 Oct 2023 10:30:15 GMT

There are so many good reasons to communicate with site visitors. Tell them about sales and new products or update them with tips and information.

Advice

There are times in life when it pays to lean on someone with more knowledge or experience than you. When it comes to dealing with debt, getting professional advice could mean the difference between managing it successfully or feeling like it has a choke-hold on your life. Speaking to a financial advisor or a debt advisor will give you professional advice on your unique situation.

Assess

Once you have some expert advice, you will be able to assess your current debt situation and determine how much debt you have - including home loans, car payments, credit cards, student loans etc. Make a list of each debt and of how long you have to pay it off, the interest rate you're paying on each of them and what your monthly payments are. Adding all these payments up and seeing a big figure may be discouraging, but don’t lose hope: this is going to allow you to break down your debt into manageable chunks and find extra money to pay it all off, one at a time.

Create a plan

In order to create your debt repayment plan, which does not need to be complicated, ask yourself these three questions:

Beyond your minimum monthly payments, how much extra money can you put towards your debt each month?

Which debt will you put that money towards first? (try to pay the one with the highest interest rate off first)

How will you prioritize those other payments once that first debt is gone?

Consistency

Now it’s time to track your spending and control your expenses. This means changing your regular spending patterns and that requires you to know exactly what you’re spending your money on. This will show you where you’re spending more than you should, and where you can cut off costs to free up some money towards paying off your debts. For example, tracking your water and electricity bill is one way to control your expenses.

One of the most immediate things you can also do to control your expenses is with a budget. If you’ve never worked with a budget before, you may find it challenging to begin with but an easy way to start is by getting into the habit of saving all your receipts for a month or two to see where your money is going. You might be overlooking the daily cup of coffee or the lunch at work that’s costing you more than it should.

Also, try to make it a habit to pay cash whenever possible. It’s easy to swipe a card for every purchase, but it also makes it easier to spend more than you have. In your monthly budget, allow yourself only specific amounts for items like groceries, fuel and recreational purchases. Withdraw a fixed amount of money to spend each month and that which is left over in your account should be used to pay off large debts.

Debt-counselling

If you feel that debt is completely unmanageable, you can also consider going for debt-counselling. Debt counsellors are there to make sure that you are able to afford your debt repayments and live comfortably. Your debt counsellor will work to get you the lowest monthly instalment by negotiating with credit providers on your behalf. Your debt counsellor may suggest that you enter a debt review period. Should you agree, during the time that you are under debt-review you will not be able to make use of credit and all your focus will go towards repaying your debt and ultimately becoming debt-free. After this process, you will receive a clearance certificate from the credit bureaus.

StokFella is a licensed FSP 48812 and Credit Provider NCRCP12735 T & Cs Apply

7 Tips for when you’re in debt

website@sitemodify.com (Website Editor) — Tue, 24 Oct 2023 10:30:15 GMT

Stop using credit cards

The more you swipe that credit card, the more the balance climbs. If you’d really like to get out of debt, stop borrowing from Peter to pay Paul. If you’re having a difficult time letting go, try freezing your cards in a cup of ice and hopefully by the time you can access them again, you will have changed your mind.

Pay the most that you can afford monthly

Rather than paying the minimum monthly instalment on your debt, look for ways to pay as much as possible. The more you pay, the faster you’ll get out of debt. Allocate any spare income towards debt repayment for this purpose.

Spend less wherever you can

Learn to tell the difference between wants and needs. Using a budget can help a great deal in this regard. Skip daily trips to your local coffee shop, walk rather than taking an uber or a taxi, skip buying lunch at work and rather take lunch box. Over time, these small savings add up and can be used to dig you out of the debt hole much faster than you would expect.

Double up on payments where possible

Once you’ve paid off one credit card doesn’t mean it’s party time. Congratulations on accomplishing that goal, but keep in mind that it’s important not to lose your momentum. This is not the time to spend more on lifestyle and luxuries. Rather allocate those funds that are now freed up to diminishing the next balance in line.

Use windfalls to reduce balances owing

This should go without saying, but if you get a sudden windfall — such as a tax refund or a bonus at work, don’t spend it on a splurge. Instead, bite the bullet and use a portion of the funds to pay off more of your debt.

Tackle debts with the highest interest rates first

Save money on interest by eliminating your debts with the highest interest rates first.

Although some prefer the debt snowball method, (which suggests that you pay the debts with the lowest balances first to build momentum), it makes more financial sense to clear those debts with the higher interest rates first. The ultimate goal is to pay off debt, however, so the choice is yours.

Find ways to supplement your income

If you have the time and any particular marketable skills, try a side-gig to make some additional income. You may be able to bake cakes or cookies after hours, do photography at weekends or design work online. Perhaps you have a knack for book-keeping and can assist family and friends with small businesses? In some instances, you may be able to generate quite a significant amount of extra cash, all of which should be contributed to your debt-payoff fund.

StokFella is a licensed FSP 48812 and Credit Provider NCRCP12735 T & Cs Apply