Stokvels are a way of life

Stokvels, savings clubs and burial societies

It is very clear that what could have started as a simple need for friends to support one another or provide an avenue for enjoyment and entertainment and enhance the bond or friendship amongst friends or create a sense of belonging, has resulted in the birth of the concept or idea of stokvels. What the function or role of a particular stokvel is cannot be encapsulated in one definition. The reasons for the establishment of a group under the banner of a stokvel appear to be wide and varied; it depends on the people that comprise that group or stokvel. In fact it also emerges that individuals seek different benefits from stokvels, or have joined for reasons that are not similar to other members of the same group or stokvel.

There are various forms of the coming together of groups. Whilst these groups have come to be commonly referred to as stokvels, their aims and objectives of forming the groups are wide and varied. For example, some groups believe that they are investment groups with economic and financial interests, others would call themselves kitchen parties, because they are women who enjoy hanging out together, enjoy good food and contribute money to the hosting member. Family groups would insist on only allowing family members and relatives to join the groups. In certain groups even the families of the in-laws would be seen as family and therefore eligible to join the family Stokvel.   

The difference between stokvels and societies

The groups at times use the terms stokvel and burial society interchangeably. In most cases it depends on what the group would prefer to be referred to as. It is limiting to simply define a group as a burial society on the basis that the members would provide support or insurance for the burial of a member or a relative of the member. The facts are that when a member of a stokvel passes or the relative of a member has to be buried, the stokvel would usually make a contribution towards the burial of that member or the relative. Some groups are not comfortable with the inclusion of the word burial, especially the groups with younger members, as part of the name of the group, but would use the word society, others have created names like Asazi Bafana or Sizanani or Thusanang and would not accept that they are a stokvel or burial society. Such groups would pre-determine or define what the purpose of contributing money to a common pool is and operate according to that common understanding. On occasion the need to deviate and consider a request from a member outside what has been agreed upon does take place. The members would then meet to look at the request made and draw a conclusion. Whilst it can be said that the well organised and administered stokvels and societies adhere to some predetermined constitution and rules, the changing socio-economic conditions have resulted in these groups adjusting to the changing times and amending sections of their constitutions and the rules. 

The selection of members by stokvels and societies

The membership to these groups is not determined by the LSM categorisation one falls under or by the income that one derives from the job or business that they have. It is not the ability to pay or contribute that obliges a group to accept a request to join. There are criteria, many times inconsistent, that members would use to decide to accept or reject the request to join the group. Some groups would simply agree that no new member will be considered when the group has reached a given number of members, others would base acceptance to the group on the area or location or street one lives in. Whilst other groups could use academic qualifications or professions as criteria to be accepted into the groups, others would accept or reject an individual on the basis that they do not trust the person or do not know a person for long enough.      

Can blacklisted individuals be members of stokvels and societies?

Stokvel and society members often emphasise the role and the importance of trust amongst the members. It is important to the members that the financial contributions expected and the commitments made by members be adhered to. This presupposes that the members would then need to have a good understanding or knowledge of the person that is considered as new member to join the group. It is interesting to note that members have to rely on the words and views of other members when accepting a new member to the group. There are no credit checks or behavioural analysis or history of the member made to assesses whether the new member is a risk or not. But the applicant’s conduct in the community or the sports club he/she has been a member of or his/her reputation amongst his/her peers and friends would count in the decision making processes of accepting or rejecting the applicant’s wish to join the group. There are no credit bureau checks that are carried out on new members.

The safekeeping of members’ contributions

The element or principle of trust reigns supreme in the relationship members have with one another. Those that are elected or chosen to run the affairs of the group are always aware of the burden this trust places on their shoulders. Therefore, it is accepted that stealing from the group’s coffers or failing to carry out the responsibilities entrusted on one, are non-negotiable. The honour of being elected or selected to be in the administrative office of the group is very important to the members, and therefore all efforts are geared towards serving the group with diligence and loyalty.

It is generally accepted that the money contributions made by members to the group will be kept safe. Banks remain the best place to keep members’ contributions. There are groups that constantly look at opportunities to grow their contributions and have higher returns on their savings or investments. The commitment or investment of members’ contributions into shares and other relatively riskier products will be discussed with the other members before such decisions are taken. Members would have to decide on whether to opt for ordinary saving accounts or fixed deposits, depending on the purpose of the stokvel or society and the perceived duration of time it takes to access the funds when needed, especially in an emergency. The more banking enlightened or sophisticated or literate groups would split their contributions and keep a portion in fixed deposits and others would consider shares. Whilst the members of stokvels and societies keep their contributions in banks with the belief that these funds would be useful when the time for cash to assist a needy member arrives, the groups expect their contributions to gain interest or at least be safe and remain the same amounts that were contributed and saved. The reality is that there are numerous bank charges and fees that eat into the contributions saved by stokvel and society groups. Many believe that at a particular level, banks are legally stealing their contributions, since as groups they have no other safer ways of keeping and growing their contributions. Banks are constantly looking at ways of addressing the concerns raised by stokvel and society groups. For example, First National Bank has a stokvel account that has looked into this matter and created an account that does not charge cash deposit and withdrawal fees. FNB ran an advertising campaign that was linked to a competition with the chance to win R10 000.00 for opening a stokvel account with FNB and R 5 000.00 could also be won for introducing another group to the FNB stokvel account. The R 5 000.00 that could be won for introducing another group is suspect and sounds unfair. This part of the offer should not be a competition. If a new stokvel group that has just opened an account with the bank brings another group to open an account, it should just be offered a prize for taking the trouble to bring a new group into the account. Unless of course there are levels of distrust that the bank has, which are unfortunately uncharacteristic with established stokvel and society groups, and service providers that are looking at working within these groups should be aware of. The FNB stokvel account advertising campaign features a little happy boy and four adults standing next what looks like the entrance to a private or good school called Charleston Primary. Assumptions can be made that the lady that is bending forward and waving to the little boy is the mother, and behind the mother it is the father, the grandmother and grandfather. It cannot be members of the stokvel group, since members of the groups are usually within the same age category. The message and the image play within the correct emotional connection that parents or families place around the importance of the education of their children and the determination to offer them the best chance in life by taking their children to the best schools possible. And if stokvels that bank with FNB can also support this wish, it makes it attractive and beneficial to members and the bank benefits by holding the savings of these groups. It is a win-win scenario for all.               

Uniforms and the role of brands

The spirit of collectivism and brotherhood/sisterhood are but some of the tenets that hold stokvels, societies and other similar groups together. This is expressed through the uniformity or oneness that is struck within the groups, which has resulted in most groups opting to adopt a form of dress or style to indicate that they belong to a group or they are part of the same group or family. Members may select to wear the same suits, shirts and ties or the ladies would have specially designed dresses and aprons. The types of uniforms that women select are also practical in the sense these make it possible for the women to wear them whilst working, cooking and serving food and drinks during their gatherings.

Depending of the impression, affordability, the fashion statement and standard the group wants to set; exclusive, expensive and quality brands may be part of the choices the groups make for their uniforms. For some groups it might be very important that it is known in the community that the groups wear Giorgio Armani suits and Moschino ties, others might select their brands of suits and ties on the basis of affordability and practicality. Whatever the motivation is for the selection of the brands and the quality the groups select, there is dignity, pride and neatness that form part of wearing the uniform. These uniforms are not worn any other time except during the groups’ gatherings or when there are members’ weddings and funerals.

The unwavering bond and the collective life

It is said that there are no half measures when one selects to view and consider another person or persons as brothers and sisters. It means that you cannot make them a part of your life only in areas where and when it suits you. The natures of stokvels and societies would inevitably result in stronger and closer bonds and friendships formed amongst members, as between individuals or members of the groups. The lives that these members share often stretch beyond the roles and responsibilities of the stokvel or society. The caring and the love for one another require that the well-being of all members is sought and secured at all times.

The members have been able to assist one another in finding jobs and identifying that perfect house to live in. Members can advise one another on which schools to consider when sending their children to obtain education and where to find funding and bursaries for tertiary education.

The fact that an individual can rely on a member or members for emotional support and a friend or friends that can listen to one’s life’s challenges assists in making one feel that they are not alone in the pain that they are experiencing at the time. The collective nature of the groups often means that the aggrieved member can be advised and supported in dealing with the difficulty experienced.

Holidays and outings are usually organised to provide environments for members to travel and enjoy holidays together. This further strengthens the bond amongst individuals and groups and also makes travelling more cost-effective, since transport and accommodation expenses can be shared and the group discounts can be negotiated. Some groups have found new hobbies such as fishing and camping, and others have been able to travel to various countries, which individually, they would not have bothered to visit. For, example, it is an ongoing problem that many holiday resorts still practice silent discrimination against black African, Indian and Coloured holiday-makers. This knowledge or perception would be reason enough to discourage individuals from visiting the beautiful holiday destinations in South Africa. However, the power in numbers or the groups makes the attempt to travel more probable.                

The marketing potential of stokvels and societies

After all is said and done; the economic and social significance of these groups are worthy of high levels of interest from, amongst others, marketing, social, economic, political and financial institutions. The financial investments or worth of these groups is estimated by various organisations as hovering between the figures of R 12 billion to R 20 billion. Marketers and other interested institutions often want to know how best to reach these groups and sell this or the other product or service. The most sensible question to consider is whether it is prudent to view these stokvels and societies as different to the individual members that are part of these groups or to accept that individual members have some level of influence or power to direct the group into a particular direction. Therefore the emphasis should be on convincing these individuals to accept or buy into a particular product or service and believe or hope that the individuals will go to their respective groups and be the good messengers for particular products and services. The reality on the ground is that these groups are often comprised of people or members with different clout or respect accorded to them by the other members of the group. These would be individuals in the stokvels and societies that are respected and held in high regard in the communities they live in and as a result also respected by other members in the stokvels and societies. Such strong characters often bring their own views on various matters and would naturally influence the group to respond in ways suggested by such characters. For example, if such strong characters believe that one bank is better than the other, the group would in most cases give them the benefit of the doubt and opt to bank with the suggested bank. The influence of such strong characters has been demonstrated in many occasions when the choice of whisky or beer or soft drink the group purchases as part of the refreshments to be consumed during a stokvel or society gathering. In the long run, the choices that are often made by the strong and influential characters become the preferences of the groups.