A traditional, informal means of saving, stokvel investment societies continue to bind communities in South Africa and is a multi-billion dollar industry. Their capital is trust, and their currency a central fund that spawns new opportunities.
In this house in Centurion in Johannesburg on a winter afternoon, there’s song, food, camaraderie and joy. And one common component that binds the women: stokvels.
For most South Africans honoring the traditional mode, this is the word synonymous with savings schemes that they have come to trust over generations.
And like this meet we are witness to today, it stands for a union in which a group of people who know and trust each other enter into an agreement to contribute a fixed amount of money towards a common pool.
The group of people we are meeting are the Akanani Sisters, stokvel members who occasionally come together, bantering over a hot meal and listening to music.
“The whole purpose of the stokvel is so that we may come together as ladies and mothers made of different age groups, so we may build and advise one another on life matters. It is not just about collecting money, we cry and laugh together,” says Bahedile Mooke, one of the members.
Stokvels, the traditional South African savings scheme with 11.5 million members in 810,000 groups contributing R50 billion ($3.76 billion) annually to the economy, is often overlooked.
“If you speak of something that is outside of that framework, then that is something else,” says Mizi Mtshali, the Chief Executive Officer of the National Stokvel Association of South Africa (NASASA).
The Akanani Sisters stokvel was formed in 2015 by three family members who gathered on a monthly basis. The group, however, is not registered with NASASA and does not save their money through financial institutions. However, they are looking at registering with NASASA as a precautionary step.
“We got tired of meeting only when there were funerals, so we decided to start a small stokvel even if it was just for groceries,” says Sibongile Motsoeneng, treasurer of the Akanani Sisters.
This afternoon, they are six professionals from Johannesburg who are close friends.
“Society forces you to always put money aside – I don’t play around when money has to be paid, because we all want to be happy at the same time,” says Motsoeneng.
The monthly premium for the stokvel is R1,300 ($98) for which R500 ($37.6) is set aside towards groceries and rest distributed among the members at the end of each year.
“Our groceries are not like other stokvels, where you see them buy maize meal in large quantities. We buy groceries as per our personalized everyday needs. So the grocery would last us for about six months and one would just add on meat and other small things on a monthly basis,” says Motsoeneng.
In addition to their stokvel, they contribute a R300 ($22.5) towards each other’s birthdays for buying presents, and R2,000 ($151) for their occasional weekend holiday trips.
Nonzolo Soldati, the chairperson of the stokvel, says they drew up a constitution which dictates the size of the contributions, when the accumulated money is to be paid out, and the roles and responsibilities of the members that have to be abided by.
“If you fail to pay your monthly premiums for more than three months, that would mean you forfeit your portion of your groceries and savings at the end of the year. Also, if you fail to attend the monthly gatherings, you are fined R50 ($3.76),” says Soldati.
“We used to deposit the money in the bank, but now we no longer do so because of the exorbitant bank charges,” says Soldati.
Through these stokvels, the members’ lives have changed, as they are not unduly stressed by financial woes come January. Their finances are in order and they also don’t feel the pinch of food price hikes through the year.
Apart from the groceries they purchased last year, they each saved R17,000 ($1,280), which is nothing unusual, according to Mtshali.
“On average in South Africa, a stokvel consists of 20 participants and they can save [as much] R50,000 ($3,765),” says Mtshali.
Investing in stokvels is not without risk however. Unlike the formal financial institutions, the only security members can bank on is trust. As a result of its unregulated nature, fraud in stokvels is common.
Ask one of the Akanani Sisters members, Bongiwe Mncube, who lost all her money. She was scammed in a burial society in Kempton Park.
“We lost two people [to death] in our community in the space of two months. That is when we realized that all the money we were ‘putting away’ was not there,” says Mncube.
They were able to pay for the burial of the first bereavement, but when it came to the second, they were scraping for funds.
“We last knew that we had money, but when we went to check the bank statement, we were surprised to find out that money was not being deposited for a couple of months. So I walked away because I had no leg to stand on,” says Mncube.
Mtshali says such stories are the reason why stokvel associations must register with NASASA so they can check the legitimacy of such societies. So, should the unthinkable happen one day, the participant is able to press criminal charges.
The word stokvels is believed to have originated from the term ‘stock fair’ used to describe auctions run by English settlers in the 19th century, but as the industry is becoming the leading form of savings and investment in South Africa, it is referred to in multiple ways, such as social clubs, gooi-goois, investment clubs, kuholisana, and makgotlas. The stokvels available vary according to the needs of the members.
“As much as there are holiday stokvels and property, social and party clubs, but grocery, burial society and saving clubs are still the most dominant,” says Mtshali.
Ponzi schemes and pyramid schemes have also camouflaged as stokvels.
“What has happened over the years is that a lot of operators have started abusing the word stokvels…They use that word to attract customers for whatever product they are looking to sell,” says Mtshali.
While stokvels may seem like an informal way of making money, it is serious business. Members do their homework, deliberate about which companies to invest in and make investment decisions. And the best part about it is knowing there may be a financial windfall one day. It’s cash that is built on trust and binds communities.
Nicolas Manyike’s property stokvel leads to new investment opportunities.
Land ownership is a burning topic in South Africa, which is why publicist and businessman Nicolas Manyike founded Property Stokvel Investment, a stokvel that aims to buy and rent out properties, encouraging black people to be property owners.
Manyike, who grew up poor in the Mpumalanga province of South Africa, watched his mother struggle with accommodation, yet she was a member of various grocery stokvels.
“My mother was in a lot of grocery stokvels and we would eat up all the food, then the struggle would continue. So I always thought ‘how about we use the same concept but for something that has long-term benefits for us as a black community’,” says Manyike.
He decided to rework the stokvel model to have long-term benefits.
“We need to shift our mind-set around stokvels,” he says.
He worked on his idea, through drafting the constitution and coming up with the two phases that will create the members enough capital to be able to purchase land.
“The first phase is to get 100 members that would contribute R2,100 ($158). The R100 (7.52) is for administration purposes. So that we could accumulate R1 million ($75,300) in 10 months that we will use to purchase property, or a franchise that will create profit for the members,” says Manyike.
It is only in the second phase that individual property will be bought for each member.
Manyiko says that ownership of the house will be registered in the stokvel’s name until all participants are house-holders within two years.
Property Stokvel Investment currently has over 80 members and is not registered with NASASA. Manyike believes stokvels do not need to be registered as they are self-regulating.
“All stokvels in South Africa are self-regulated. NASASA is more focused on grocery stokvels. We are bound by our constitution,” he says.
“We are banking with Nedbank as a club account and we have a committee, once we have a 100 members we will increase the number of people in the committee,” says Manyike.
Purchasing property in South Africa is a struggle due to increasing home loans and interest. Could stokvels be the future of acquiring property?
Download A Stokvel
Tshepho Moloi says he has championed the future of stokvels.
Imagine being a stokvel member and never having to meet? Well, that is what the future of stokvels looks like based on an app designed by Tshepho Moloi, the founder of StokFella.
“Most businesses are bought out of frustration of people saying that we could do better. I wanted to start an investment stokvel but the administration behind it was a bit of a headache,” says Moloi.
Moloi went home to Soweto, where he grew up, and observed a burial stokvel that was in existence for two years and had developed into an investment and grocery stokvel.
“I found out that the common problem is maladministration… So that is how the birth of StokFella came about,” he says.
StokFella, is a smartphone-based app that seeks to help stokvels organize, manage, communicate and be more efficient in growing their wealth.
“By doing that, it gives them access to economic opportunities. So they grow from point A to point B,” Moloi says.
In just two years, the app has 5,000 active members and is user-friendly for all age groups and LSMs.
“When stokvels want to be endorsed by us, they need to come to our offices so that we may conduct due diligence on them. However, those that just want to use the app could just download it,” says Moloi.
The main challenge StokFella faced during its initial stages was with the paperwork of regulatory laws and reaching the right market.
“But I am happy to have championed the future of stokvels. Honestly, it is not a unique solution but our implementation is how we have been able to get far,” he says.
“If 10 years from now, we still have a R49 billion ($3.69 billion) industry, then we have not done our job!” says Moloi.
Why The High Number Of Employees Quitting Reveals A Strong Job Market
While recession fears may be looming in the minds of some, new data from the Bureau of Labor Statistics shows that the economy and job market may actually be strengthening.
The quits rate—or the percentage of all employees who quit during a given month—rose to 2.4% in July, according to the BLS’s Jobs Openings and Labor Turnover report, released Tuesday. That translates to 3.6 million people who voluntarily left their jobs in July.
This is the highest the quits rate has been since April 2001, just five months after the Labor Department began tracking it. According to Nick Bunker, an economist at the Indeed Hiring Lab, the quits rate tends to be a reflection of the state of the economy.
“The level of the quits rate really is a sign of how strong the labor market is,” he says. “If you look at the quits rate over time, it really drops quite a bit when the labor market gets weak. During the recession it was quite low, and now it’s picked up.”
The monthly jobs report, released last week, revealed that the economy gained 130,000 jobs in August, which is 20,000 less than expected, and just a few weeks earlier, the BLS issued a correction stating that it had overestimated by 501,000 how many jobs had been added to the market in 2018 and the first quarter of 2019. Yet despite all that, employees still seem to have confidence in the job market.Today In: Leadership
The quits level, according to the BLS, increased in the private sector by 127,000 for July but was little changed in government. Healthcare and social assistance saw an uptick in departures to the tune of 54,000 workers, while the federal government saw a rise of 3,000.
The July quits rate in construction was 2.4%, while the number in trade, professional and business services, and leisure and hospitality were 2.6%, 3.1% and 4.8%, respectively. Bunker of Indeed says that the industries that tend to see the highest rate of departuresare those where pay is relatively low, such as leisure and hospitality. An unknown is whether employees are quitting these jobs to go to a new industry or whether they’re leaving for another job in the same industry. Either could be the case, says Bunker.
In a recently published article on the industries seeing the most worker departures, Bunker attributes the uptick to two factors—the strong labor market and faster wage growth in the industries concerned: “A stronger labor market means employers must fill more openings from the ranks of the already employed, who have to quit their jobs, instead of hiring jobless workers. Similarly, faster wage growth in an industry signals workers that opportunities abound and they might get higher pay by taking a new job.”
Even so, recession fears still dominate headlines. According to Bunker, the data shows that when a recession hits, employers pull back on hiring and workers don’t have the opportunity to find new jobs. Thus, workers feel less confident and are less likely to quit.
“As the labor market gets stronger, there’s more opportunities for workers who already have jobs. So they quit to go to new jobs or they quit in the hopes of getting new jobs again,” Bunker says. He also notes that recession fears may have little to do with the job market, instead stemming from what is happening in the financial markets, international relations or Washington, D.C.
So what does the BLS report say about the job market? “Taking this report as a whole, it’s indicating that the labor market is still quite strong, but then we lost momentum,” Bunker says. While workers are quitting their jobs, he says that employers are pulling back on the pace at which they’re adding jobs. “While things are quite good right now and workers are taking advantage of that,” he notes, “those opportunities moving forward might be fewer and fewer if the trend keeps up.”
-Samantha Todd; Forbes
No Seat At The Global Table For Indigenous African Cuisine
Gastronomic tourism based on African food could easily increase and create new value chains that unlock billions in untapped wealth for the continent, but what is stopping us?
Food and tourism are an integral part of most economies, globally. Food is undeniably a core part of all cultures and an increasingly important attraction for tourists. To satisfy their wanderlust, contemporary tourists require an array of experiences that include elements of education, entertainment, picturesque scenery and culinary wonders. The link between food and tourism allows destinations to develop local economies; and food experiences help to brand and market them, as well as supporting the local culture and knowledge systems.
This is particularly important for rural communities, where 61% of sub-Saharan Africans live, according to the World Bank last year. These communities have often felt the brunt of urbanization, which has resulted in a shift away from rural economies. If implemented effectively, Africa could get a piece of the gastronomic tourism pie, which was worth $8.8 trillion last year, according to the World Travel & Tourism Council.
However, there is currently very little public information to pique the interest of tourists about African food. World-renowned South African chef Nompumelelo Mqwebu sought to remedy this with her self-published cookbook, Through the Eyes Of An African Chef.
“I think where it was very clear to me that I needed to do something was when I went to cooking school. I trained at Christina Martin School of Food and Wine. I thought I was actually going to get training on South African food and, somehow, I assumed we were talking indigenous food.
“I was shocked that we went through the whole year’s curriculum and we didn’t cover anything that I ate at home; we didn’t cover anything that my first cousins, who are Sotho, ate in Nelspruit (in South Africa’s Mpumalanga Province); we didn’t cover anything that would come from eSwatini, which is where my mother is from,” Mqwebu says.
By self-publishing, she has ultimately contributed to a value chain that has linked local food producers and suppliers, which includes agriculture, food production, country branding and cultural and creative industries.
“I am a member of Proudly South African, not only my business, but the book as well. Part of the reason is that the cookbook was 100% published in South Africa. So, everybody who worked on the cookbook, and printing, was all in South Africa, which is something quite rare these days because authors have their books published abroad.”
The Proudly South African campaign is a South African ‘buy local’ initiative that sells her cookbook on their online platform as its production adheres to the initiative’s campaign standards. Self-publishing has allowed Mqwebu to promote her book for two years and to directly communicate with her audience in a way she thought was best, while exposing her to a vast community of local networks. She recalls her first step towards creating her own body of work.
“I was in culinary school when I wrote the recipe for amadumbe (potato of the tropics) gnocchi. We were making gnocchi and I thought, ‘so why aren’t we using amadumbe because it’s a starch?’ and when I tasted it, I thought, ‘this could definitely work’. I started doing my recipes then.
“And there was talk about, ‘we don’t have desserts as Africans’. I did some research and found we ate berries, we were never big on sugar to begin with. That’s why I took the same isidudu (soft porridge made from ground corn) with pumpkin that my grandmother used to make and that became my dessert. “I also found that when I went to libraries looking for indigenous recipes, I couldn’t really find something that spoke to me as a chef. I found content that looked like history books. It was not appealing. It was not something, as a chef, I could proudly present to another chef from a different part of the world, so I knew I had to write my book,” Mqwebu says about the award-winning recipe book that chronicles African cuisine.
Financial and health benefits
According to the World Travel & Tourism Council, in 2018, the tourism sector “contributed 319 million jobs, representing one in 10 of all jobs globally and is responsible for one in five of all new jobs created in the world over the last five years. It has increased its share of leisure spending to 78.5%, meaning 21.5% of spending was on business.”
To narrow in on how lucrative food can be, the World Food Travel Association estimates that visitors spend approximately 25% of their travel budget on food and beverages. The figure can get as high as 35% in expensive destinations, and as low as 15% in more affordable destinations. “Confirmed food lovers also spend a bit more than the average of 25% spent by travelers in general.”
However, there is a widely-held view that the African continent is not doing enough to maximize its potential to also position itself as a gastronomic tourism destination, using its unique edge of indigenous knowledge systems (IKS).
“We are not a culinary destination and we will never be while we are still offering pasta as the attraction for our tourists,” Mqwebu says.
Dr George Sedupane, who is the Coordinator of the Bachelor of the Indigenous Knowledge Systems program in South Africa’s North-West University, echoes Mqwebu’s sentiments.
“I often cringe when I go to conferences and there are guests from all over the world and we serve them pasta. Why would they come from Brazil to eat pasta here? They can have pasta in Italy. Why don’t we serve them umngqusho (samp and beans)?
“We need to be creating those experiences around our culture. We are failing to capitalize on our strengths. There is a lack of drive to celebrate what we have,” says Sedupane, who also teaches modules and supervises research in indigenous health and nutrition.
Writer and historian Sibusiso Mnyanda says current innovations in African food technology are born out of necessity, rather tourism and cultural ambitions.
“Food security is becoming an issue that is leading to IKS around farming being prioritized. In Nigeria, they are innovating dry season farming, because of deforestation and soil being de-cultivated.
“So those indigenous knowledge strategies are being used in countries where it is a necessity and where there are enough advances related to the fourth industrial revolution. The traditional ways of producing food are not only much more organic, they are also crop-efficient,” Mnyanda says.
Nigeria may have inadvertently innovated a health solution related to colon cancer through its diet. Sedupane tells FORBES AFRICA an anecdote.
“There was a study where the colons of an African country that did not consume a lot of meat was compared to Europeans. The Africans had a much better profile as a result and there are people who want to buy African stool to get that kind of rich bacteria, that you get on an African plant-based diet.”
The study Sedupane is referring to was conducted in Nigeria and it states that: “Nigeria showed the average annual incidence of colorectal cancer was 27 patients per year. This shows that even if it seems that incidence rates are increasing in Nigeria, such rates are still about one-tenth of what is seen in the truly developed countries.”
In a bid to find reasons for this rarity of colon and rectal cancer, the study concluded that, among other reasons, the protective effects of Nigeria’s starch-based, vegetable-based, fruit-based, and spicy, peppery diet, and geographical location which ensures sunshine all year round, played a role in the country’s colon health.
Interestingly, it seems the potential value of African food could not only be based on what goes in but what also comes out as healthy faecal matter is big business globally. In 2015, The Washington Post published that one could potentially earn $13,000 a year selling their poop.
The American-based company OpenBiome has been processing and shipping frozen stool to patients who are very sick with infections of a bacteria called C.difficile. It causes diarrhea and inflammation of the colon, leaving some sufferers house-bound. “Antibiotics often help, but sometimes, the bacteria rears back as soon as treatment stops. By introducing healthy faecal matter into the gut of a patient (by way of endoscopy, nasal tubes, or swallowed capsules), doctors can abolish C. difficile for good… And yes, they pay for healthy poop: $40 a sample, with a $50 bonus if you come in five days a week. That’s $250 for a week of donations, or $13,000 a year,” the publication stated.
Sedupane is of the view that a diet which includes indigenous foods could vastly improve one’s quality of life.
He says small changes could be made, such as including more of indigenous greens, namely sorghum and millet, to breakfast. The grains are gluten-free and produce alkaline which boosts the pH level of fluids in the body and reduces acidity.
“Moving to our legumes, we have indlubu (Bambara groundnut) which is very rich and helps in the secretion of serotonin in the brain. This so important nowadays with the increase of depression. It’s easy to digest, and is great for cholesterol and moderating blood sugar,” Sedupane says.
Mnyanda is also of the view that food is imperative to health and medicinal properties. He says traditional healers primarily use natural herbs in their practice. “These are used in pain relief and healing. Things like cannabis, camphor, African potatao and red carrots. So, food is not just used for nutritional purposes.”
Other African superfoods include, Baobab fruit, Hibiscus, Tamarind, Kenkiliba, Amaranth, Moringa and pumpkin leaves.
Cultural and historical benefits
Gastronomic tourism also includes the promotion of heritage sites that are known to revolve around dishes that are of historic importance. They enhance the travel experience, they encourage the acquisition of knowledge and a cultural exchange.
There is a unanimous view that vast amounts of knowledge have been lost to history and there is a huge knowledge gap in African societies as a result of colonization and urbanization.
“Part of the colonial agenda was to make sure food security did not belong to indigenous groups. Therefore, archiving of these knowledge systems was not a priority. Especially during industrialization, where people moved from their villages to the city you found that the knowledge got left behind,” Mnyanda says.
He offers a contemporary example of how modernization continues to push African practices to the fringes: “To this day, abathwa (the San people) hunt their meat, but you find that because of changing agricultural practices and land reform on the Kruger National Park, they are being forced to move into the cities and industrial areas, therefore they are no longer able to practice their culture of hunting. As a result, their diet is changing.” Sedupane shares the view that the fundamentals of farming and astrology have also been exiled from public knowledge.
“The fundamentals of IKS were based on the understanding of the laws of nature – how and when things were done. Harvest cycles were linked with understanding astrology. They would not harvest until certain stars were visible in the sky. There was a dependence on nature.
“With industrialization, rather than working with nature, humans are seen as being above, as controlling, as directing it. The natural cycle is often tempered with rather than trying to work with it.”
Not all is lost however. There are historical practices that have stood the test of time and continue to be a part the few foods that are internationally associated with South Africa. Mqwebu says that, “historically, we ate more plants than meat because our ancestors had to hunt and the game back then was not tame. So, there were no guarantees that you would return with meat. And that’s where things like umqwayiba (biltong) come from. They had to preserve the meat, because wasting was not part of the culture”.
According to a 2015 exploratory research project conducted under the guidance of research institute Tourism Research in Economic Environs and Society director Professor Melville Saayman, biltong contributes more than R2.5 billion ($163 million) to the South African economy.
Perhaps, like the faecal transporting company, Africa will soon realize the ‘wasted’ opportunity and that there is loads of money to be made in gastronomic tourism for all its inhabitants, whether they are rural or urban, technological or indigenous.
Side Hustles: The Entrepreneur Employees
The economy is changing, and so also the way people work. A singular income is not enough, and employees are finding creative, lucrative ways to work for themselves beyond the nine-to-five.
A bearded man, wearing a pin-striped grey duckbill cap, stands behind a bar counter.
To his right adorning the counter is an array of empty cylindrical canisters. To his left, a contrasting set-up presents glass bottles filled with a transparent, salmon pink liquid. Next to them are gin chalices filled with a cornucopia of berries that are to be served to connoisseurs of the popular spirit.
Queen Nandi Pink Gin and Zulu Dry Gin are experimentally infused spirits distilled by Gologo Spirits, a business venture that merges African tradition with a contemporary outlook on alcohol brewing.
Mzwandile Xaba, an accountant by day and distiller by night, is the founder of the experimental distillery.
Nine years ago, the entrepreneur and employee would not have imagined that a childhood pastime would one day become a secondary source of income.
At 5PM, when most South African corporates are closing off the business of the day, Xaba’s two-hour journey to the warehouse begins, where he often spends hours losing himself in the craft.
Once the boiler goes on, it is down to work.
Cleaning distillation columns, labeling, bottling and blending various infusions until the odd hours of the morning, ironically, rarely feels tedious for the hustler who, in the next few hours, needs to make his way back to his assigned office cubicle.
How does an accountant from the East Rand, in the Gauteng province of South Africa, end up, not only distilling spirits for commercial use, but juggling two jobs in industries that are worlds apart?
Growing up in a household with a father who pursued two careers; one in music and the other as a mechanic, influenced Xaba’s work ethic.
Xaba, who was good at mathematics and accounting, pursued a career in the financial sector. However, his childhood preoccupation of distillation has remained with him through the various stages of transitioning into adulthood, and recognizing that he needed a stable income.
Brewing umqombothi (African beer), in time for the weekend traditional celebrations with his father, is what he owes the success of Gologo Spirits to.
Although the process of brewing and fermenting the African beer is predominantly done by women, without a matriarch in the household, the men used to distill the beer themselves.
Xaba says umqombothi distillation also taught him to recognize the various cultural environments and the greater role his practice played in ensuring the success of those events.
Xaba expands on the use of spirits in celebrations.
“You normally have those when you go to traditional ceremonies. At home, it is also used during lobola (traditional engagement) negotiations, and when young men come back from initiation school in the mountains. Spirits are used for different functions and purposes from a cultural point of view.”
Xaba’s fascination with biochemistry and spirits was unrelenting, so in 2010, while working as an accountant, he decided to teach himself the delicate balance of creating the drinks that were impactful to him.
Within three years, the first drops of alcohol were ready for commercial use.
“It was just something I wanted to do. I thought it was quite interesting and I was really passionate about it.
“I don’t know why because I have never set foot in a physics or science class but I was drawn to it,” he says.
He started with vodka, experimented with brandy and whiskey, and at a later stage he tried gin distillation.
“For the past five or six years, almost every day there is something that I am doing that is in line with Gologo. If I am not literally making something I am reading on up on something.”
Finding a balance
Xaba views his side job as an enhancement rather than his primary source of income or a necessity.
“The day job is something I understand and something that I need to do in order to do what I want to do. It covers some of my operational costs. The business is something that I funded from my pocket.
“Some of the loans I have taken to set Gologo up are what I am paying off through Gologo,” he says.
“As the projection is, there comes a point where I am really making money to expand the distillery and cover some of my personal costs. It is a blend of both, a blending and a calling and it is financially viable. Doing both, keeping the day job and operating Gologo as a side-hustle is probably one of the best decisions that I may have taken financially, and also in terms of testing myself.”
When presented with the burden of choosing one job over the other, he is quite clear that financial stability is an imperative.
“I would only quit my day job once it starts costing me more money,” Xaba states decidedly.
An online platform, Hustle South Africa, is an ongoing project managed by Dana, who is in marketing, and her husband, Justin Arnoldi, also the Head of Digital Transformation at Blue Turtle Technologies.
The Facebook page was created in response to the high unemployment rate in South Africa which currently is peaking at 29% in the second quarter of 2019.
According to StatsSA, this is the highest unemployment rate recorded since the first quarter of 2003, the number of unemployed citizens rose by 455,000 to 6.65 million.
A problem Hustle South Africa hopes to decrease with this challenge is by providing a platform for users to promote and acquire side-hustles. Through the platform, hustlers are able to upload the services or products they have on offer, whether it is through text, video or images.
“The way of working has changed, people want autonomy and flexibility. They do not necessarily want to be tied into one job; they want a couple of jobs so that they can do different things.
“We wanted to create a central platform where people can interact and sign up for side work relatively easy,” Dana says.
Hustle South Africa defines the gig economy as a series of freelance or part-time work assignments.
On the platform, hustlers now can not only advertise their business, but build a public data-base. Is it safe?
“From a security perspective, we are going to have a checking system where people can put their ID number in and they will be checked for a criminal record; if they are a South African citizen; or if they can be employed,” Dana says.
Credibility is built through references, and referrals.
This model has proven effective with Uber as they provide clients with a driver-rating system.
If Bryan Davey, a diesel mechanic and baker, chose to use the Hustle South Africa page to market his side job, he would not only receive the deserved exposure for his business but would also add to the database.
The self-taught baker, who has been a mechanic for seven years, decided to bake on the side to take his mind off the noise at the workshop.
Doing something completely different takes the pressure off when he is not at his nine-to-five as a power generation field technician at Cummins South Africa. The balance between the two is a tightrope walk for Davey.
“I do try and go straight home and start baking, hopefully if I have an order for the week. It does take a toll on you, I won’t lie it is difficult but if you want to make something work, you will do it,” he says.
“It does have an impact on your mental and physical health, but it also depends on how you are managing it, so if what you are doing is a form of stress-reliever for you, it will not impact you negatively but if you are doing it in a way where you just want income, it will affect you.”
Davey, nonetheless, does both jobs with a smile.
Based on research published by Henley Business School Africa, nine of 10 people in Africa have taken on extra work to survive.
The South African study uses the Henley Business School UK in 2018 as a framework to explore local trends, which shows that 71.3% of the 1,158 respondents in their African network have side-hustles for additional income.
According to the study, the top three side-hustles in their South African networks are professional business services at 25. 7%, real estate at 20.1%; teaching, lecturing and tutoring at 13.3%.
The lowest three being providing building/DIY services, running a shop/tuck-shop/food truck, and waiting/bartending/ hosting.
Jon Foster-Pedley, Dean of Henley Business School Africa, says the demands for the highest three industries are caused by the job descriptions.
Side-hustling as a real estate agent would not require as much time and attention as a food truck. The time and effort required, according to respondents on the network, would demand them to learn a new skill, which would take up too much time.
“The bottom ones mean that you have to be good with your hands, they are skills-based.
“Running a shop or a tuck-shop, you need to adapt to a lot of the things which take a lot of your time.
“You need to do that with your hands, you can’t scale waiting and bartending,” he says.
With the top three, on the other hand, a hustler can employ other people to manage the operations of the business while focusing on their day job.
The economy is changing and so also the way people are making money.
Side-hustles can be as lucrative as the hustler wants it to be, but finding a balance on the tightrope, is the ultimate challenge.
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