Stokvels

in enterprise •  7 years ago 

This is a very intriguing form of fund raising practiced in South Africa.

It dates back to the rotating cattle auctions of English settlers in the Eastern Cape in the 19 century and is derived from the Afrikaans for "Stock Auction" or "stok veiling"

12 or more invited participants contribute regularly based on a constitution.


Image Source

These are similar to the Self Help Groups of India but could be even more widespread.

It is estimated that one in every two black adult South Africans is a member of at least one of 800 000 stokvels. Black adult South Africans invest approximately R50 billion in stokvels a year.

Source

The most common of these that I have observed when growing up is the Contribution Stokvels.

Everybody would contribute a fixed amount of money at a predefined interval and each gets a turn to receive the lump sum. The money can then be used for any purpose.

Others are used simply for savings for a time of need and still others are used for specific purposes or big ticket items.

It's really just up to what the members decide when drawing up the constitution.

The stokvel is also an effective mechanism for financing small and micro enterprises or home industries.

They are very common among rural black South African since there is still a strong culture of communal co-operation and this sector of society typically received the least services the under the previous apartheid dispensation.

The popularity and diversity of the stokvels indicates the resourcefulness of people living close to or below the breadline and the extent to which mutual co-operation can make a bad situation slightly better.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Amazing how much we can learn from people who already solved problems. Stokvels sound like they combine flexibility with a good sense of community.

That sums it up

Молодцы так держать,Когда заработаю 100 долоров часть отдам вам,

Спасибо, но не нужно

Stokvel is really nice in the month that you receive your share but for the other eleven months its pay out time

I see similar models in different parts of the world

They do seem to be a common solution to a common problem.

  ·  7 years ago (edited)

Interesting observations, take a look at an interesting and promising use of crypto to enhance the stokvel framework... http://ekasibucks.co.za/ you can find it in their white paper.

thanks for the link

Amazing how much we can learn from people who already solved problems.

true

We also have stokvel like groups here in Kenya. They are very helpful especially in the rural areas as they enable members start and expand small businesses. Thank you for sharing :)

That's great to hear

follow and upvote me, I will give you back....
steemit.com/@protik

  ·  7 years ago Reveal Comment

follow and upvote me, I will give you back....
steemit.com/@protik

I really like your posts, I will always wait for the next posting👏🏻👏🏻👏🏻👍👍

Congratulations @sme! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of comments

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!

☺☺☺☺😊