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The Social Capital of Stokvels



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.

Stokvel Homes?

Nicolas Manyike

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

Tshepo Moloi

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.



Climate Explained: How Much Of Climate Change Is Natural? How Much Is Man-made?




How much climate change is natural? How much is man made?

As someone who has been working on climate change detection and its causes for over 20 years I was both surprised and not surprised that I was asked to write on this topic by The Conversation. For nearly all climate scientists, the case is proven that humans are the overwhelming cause of the long-term changes in the climate that we are observing. And that this case should be closed.

Despite this, climate denialists continue to receive prominence in some media which can lead people into thinking that man-made climate change is still in question. So it’s worth going back over the science to remind ourselves just how much has already been established.

Successive reports by the Intergovernmental Panel on Climate Change – mandated by the United Nations to assess scientific evidence on climate change – have evaluated the causes of climate change. The most recent special report on global warming of 1.5 degrees confirms that the observed changes in global and regional climate over the last 50 or so years are almost entirely due to human influence on the climate system and not due to natural causes.

What is climate change?

First we should perhaps ask what we mean by climate change. The Intergovernmental Panel on Climate Change defines climate change as:

a change in the state of the climate that can be identified by changes in the mean and/or the variability of its properties and that persists for an extended period, typically decades or longer.

The causes of climate change can be any combination of:

  • Internal variability in the climate system, when various components of the climate system – like the atmosphere and ocean – vary on their own to cause fluctuations in climatic conditions, such as temperature or rainfall. These internally-driven changes generally happen over decades or longer; shorter variations such as those related to El Niño fall in the bracket of climate variability, not climate change.
  • Natural external causes such as increases or decreases in volcanic activity or solar radiation. For example, every 11 years or so, the Sun’s magnetic field completely flips and this can cause small fluctuations in global temperature, up to about 0.2 degrees. On longer time scales – tens to hundreds of millions of years – geological processes can drive changes in the climate, due to shifting continents and mountain building.
  • Human influence through greenhouse gases (gases that trap heat in the atmosphere such as carbon dioxide and methane), other particles released into the air (which absorb or reflect sunlight such as soot and aerosols) and land-use change (which affects how much sunlight is absorbed on land surfaces and also how much carbon dioxide and methane is absorbed and released by vegetation and soils).

What changes have been detected?

The Intergovernmental Panel on Climate Change’s recent report showed that, on average, the global surface air temperature has risen by 1°C since the beginning of significant industrialisation (which roughly started in the 1850s). And it is increasing at ever faster rates, currently 0.2°C per decade, because the concentrations of greenhouse gases in the atmosphere have themselves been increasing ever faster.

The oceans are warming as well. In fact, about 90% of the extra heat trapped in the atmosphere by greenhouse gases is being absorbed by the oceans.

A warmer atmosphere and oceans are causing dramatic changes, including steep decreases in Arctic summer sea ice which is profoundly impacting arctic marine ecosystems, increasing sea level rise which is inundating low lying coastal areas such as Pacific island atolls, and an increasing frequency of many climate extremes such as drought and heavy rain, as well as disasters where climate is an important driver, such as wildfire, flooding and landslides.

Multiple lines of evidence, using different methods, show that human influence is the only plausible explanation for the patterns and magnitude of changes that have been detected.

This human influence is largely due to our activities that release greenhouse gases, such as carbon dioxide and methane, as well sunlight absorbing soot. The main sources of these warming gases and particles are fossil fuel burning, cement production, land cover change (especially deforestation) and agriculture.

Weather attribution

Most of us will struggle to pick up slow changes in the climate. We feel climate change largely through how it affects weather from day-to-day, season-to-season and year-to-year.

The weather we experience arises from dynamic processes in the atmosphere, and interactions between the atmosphere, the oceans and the land surface. Human influence on the broader climate system acts on these processes so that the weather today is different in many ways from how it would have been.

One way we can more clearly see climate change is by looking at severe weather events. A branch of climate science, called extreme event or weather attribution, looks at memorable weather events and estimates the extent of human influence on the severity of these events. It uses weather models run with and without measured greenhouse gases to estimate how individual weather events would have been different in a world without climate change.

As of early 2019, nearly 70% of weather events that have been assessed in this way were shown to have had their likelihood and/or magnitude increased by human influence on climate. In a world without global warming, these events would have been less severe. Some 10% of the studies showed a reduction in likelihood, while for the remaining 20% global warming has not had a discernible effect. For example, one study showed that human influence on climate had increased the likelihood of the 2015-2018 drought that afflicted Cape Town in South Africa by a factor of three.

Adapting to a changing climate

Weather extremes underlie many of the hazards that damage society and the natural environment we depend upon. As global warming has progressed, so have the frequency and intensity of these hazards, and the damage they cause.

Minimising the impacts of these hazards, and having mechanisms in place to recover quickly from the impacts, is the aim of climate adaptation, as recently reported by the Global Commission on Adaptation.

As the Commission explains, investing in adaptation makes sense from economic, social and ethical perspectives. And as we know that climate change is caused by humans, society cannot use “lack of evidence” on its cause as an excuse for inaction any more.

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Current Affairs

The Rage And Tears That Tore A Nation



Snapshots of the outrage against foreign nationals and protests against sexual offenders in South Africa in recent weeks, captured by FORBES AFRICA photojournalist Motlabana Monnakgotla.

As the continent’s second-biggest economy, South Africa attracts migrants from the rest of Africa. But mired in its own problems of unemployment and political instability, September saw a serious outbreak of attacks by South Africans on foreign nationals and foreign-owned businesses. And they have been ugly.    

The spark that fueled the raging fire was in Pretoria, the country’s capital, when a taxi driver was shot dead by a foreign national who was selling drugs to a youngster in the central business district (CBD).

The altercation caused a riot and the taxi industry brought the CBD to a standstill, blocking intersections. It did not stop there; a week later, about 60 kilometers from the capital in Malvern, a suburb east of the Johannesburg CBD, a hijacked building caught fire, leaving three dead. As emergency services were putting out the fire, the residents took advantage and looted foreign-owned shops and burned car dealerships overnight on Jules Street.

The lootings extended to the CBD and other parts of Johannesburg.

To capture this embarrassing moment in South African history, I visited Katlehong, a township 35 kilometers east of Johannesburg, where the residents blocked roads leading to Sontonga Mall on a mission to loot the mall and the foreign-owned shops therein overnight.

Shop-owners and workers were shocked to wake up to no business.

Mfundo Maljingolo, a worker at Fish And Chips, was among the distressed.

“This thing started last night, people started looting and broke into the mall and did what they wanted to do. I couldn’t go to work today because there’s nothing to do; now, we are not going to get paid. The shop will be losing close to R10,000 ($677) today. It’s messed up,” said Maljingolo.

But South African businesses were affected too.

Among the shops at the mall is Webbers, a clothing and footwear store. Looters could not enter the shop and it was one of the few that escaped the vandalism.

Dineo Nyembe, the store’s manager, said she was in disbelief when she saw people could not enter the mall.

“We got here this morning and the ceiling was wrecked but there was no sign that the shop was entered, everything was just as we left it. Now, we are packing stock back to the warehouse, because we don’t know if they are coming back tonight,” lamented Nyembe, unsure if they would make their daily target or if they would be trading again.

 Across the now-wrecked mall are small businesses that were not as fortunate as Webbers, and it was not only the shop-owners that were affected. 

Emmanuel Nhlane’s home was robbed even as attackers were looting the shop outside.

“They broke into my house, I was threatened with a petrol bomb and I had to stand outside to give them a chance; they took my fridge, bed, cash and my VHS,” said Nhlane.

Nhlane had rented out his yard to foreign nationals to operate a shop. He does not comprehend why his belongings were taken because he doesn’t own a shop. Now, it means that the unemployed Nhlane will not be getting his monthly rental fee of R3,700 ($250).

Far away, the coastal KwaZulu-Natal province of South Africa, was also affected as trucks burned and a driver was killed because of his nationality. This was part of a logistics and transport industry national strike.

Back in Johannesburg, I visited the car dealerships that were a part of the burning spree on Jules Street.

The streets were still ashy and the air still smoky, two days after the unfortunate turn of events.

Muhamed Haffejee, one of the distraught businessmen there, said: “Currently, we are still not trading.” 

Cape Town, in the Western Cape province of South Africa, which hosted the World Economic Forum (WEF) on Africa from September 4 to 6, was also witness to protests by women and girls from all walks of life outside the Cape Town International Convention Centre, demanding that the leadership take action to end the spate of gender-based violence (GBV) in the country.

There were protests also outside Parliament. What set off the nationwide outcry was the shocking rape and murder of Uyinene Mrwetyana, a 19-year-old film and media student at the University of Cape Town, inside a post office by a 42-year-old employee at the post office.

There was anger against the ghastly crimes and wave of GBV in the country that continues unabated. According to Stats SA, there has been a drastic increase of women-based violence in South Africa; sexual offences are up by 4.6%, from 50,108 in 2018 to 52,420 in 2019.

A week later, on a Friday, Sandton, Africa’s richest square mile and one of the biggest economic hubs, was shut down by hundreds of angry women and members of advocacy groups from across Johannesburg. They congregated by the Johannesburg Stock Exchange (JSE), the cynosure of business, singing and chanting, to demand “a 2% levy on profits of all listed entities to help fund the fight against GBV and femicide”.   

Among the protesters was Cebi Ngqinanbi, holding a placard that read: “I’m not your punching bag.”

“We came here to disrupt Sandton as the heart of Johannesburg’s economic hub. We want to make everyone aware that women and children are being killed every day in South Africa and they [Sandton] continue with business as usual, sitting in their offices with air-conditioners and the stock exchange whilst people on the ground making them rich are dying. That is why we are here, to speak to those that have economic power,” said Ngqinanbi.

She added that if women can be given economic power, they will be able to fend for themselves and won’t fall prey to abusive men, since most women stay in abusive relationships because men are more financially stable.

Amid the chanting and singing of struggle songs, Nobuhle Ajiti addressed the crowd and shared her own haunting experience as a migrant in South Africa and survivor of GBV. She spoke in isiZulu, a South African language.

“I survived a gang rape; I was thrown out of a moving car and stabbed several times. I survived it, but am I going to survive xenophobia that is looming around in South Africa? Will I able to share my xenophobia story like I can share my GBV story?” questioned Ajiti.

She said as migrants, they did not wake up in the morning and decide to come to South Africa, but because of the hardships faced in their home countries, they were forced to come to what they perceived as the city of opportunities. And as a foreign national, she had to deal with both xenophobia and GBV.

“We experience institutionalized xenophobia in hospitals; we are forced to pay huge amounts for consultation. I am raped and I need medical attention and I am told I need to pay R5,000 ($250).

“As a mere migrant, where am I going to get R5,000? I get abused at home and the police officer would ask me where I’m from because of my accent, I sound Zimbabwean. What does my nationality have to do with my husband beating me at home or with the man that just raped me?” she asked.

Women stop traffic while they hold up placards stating their grievences against GBV. Picture: Motlabana Monnakgotla

Addressing the resolute women outside was the JSE CEO Nicky Newton-King who received the memorandum demanding business take their plight seriously, from a civil society group representing over 70 civil society organizations and individuals.

The list of demands include that at all JSE-listed companies contribute to a fund to resource the National Strategy Plan on GBV and femicide, to be launched in November; transport for employees who work night shifts or work after hours; establish workplace mechanisms to provide support to GBV survivors as part of employee wellness, and prevention programs that help make workplaces safe spaces for all women.

Newton-King assured the protestors she would address their demands in seven days. But a lot can happen in seven days. Will there be more crimes in the meantime? How many more will be raped and killed in South Africa by then?

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Current Affairs

Quality Higher Education Means More Than Learning How To Work




When people talk about quality education, they’re often referring to the kind of education that gives students the knowledge and skills they need for the job market. But there’s a view that quality education has wider benefits: it develops individuals in ways that help develop society more broadly.

In Zimbabwe, for example, the higher education policy emphasises student employability and the alleviation of labour shortages. But, as my research found, this isn’t happening in practice.

University education needs to do more than produce a graduate who can get a job. It should also give graduates a sense of right and wrong. And it should instil graduates with an appreciation for other people’s development.

Tertiary education should also give students opportunities, choices and a voice when it comes to work safety, job satisfaction, security, growth and dignity. Higher education is a space where they can learn to be critical. It must prepare them for participating in the economy and broader society.

This isn’t happening in Zimbabwe. Graduate unemployment is high and employers and policy makers are blaming this largely on the mismatch between graduate skills and market requirements.

Investigating Zimbabwe’s universities
My research sought to examine how a human development lens could add to what was valued as higher education, and the kind of graduate outcomes produced in Zimbabwe. I investigated 10 of the universities in Zimbabwe (there were 15 at the time of the research). Four were private and six public.

I reviewed policy documents, interviewed representatives of institutions and held discussions with students. Members of Zimbabwe’s higher education quality assurance body and university teaching staff were also included.

I found that in practice, higher education in Zimbabwe was influenced by the country’s socio-political and economic climate. Decisions and appointments of key university administrators in public universities and the minister of higher education were largely political.

In addition, resources were limited and staff turnover was high. Universities just couldn’t finance themselves through tuition fees.

Different players in the higher education system – employers, the government, academics, students and their families – have different ideas about what “quality” means in higher education. The Zimbabwe Council for Higher Education understands quality as meeting set standards and benchmarks that emphasise the graduates’ knowledge and skills.

To some extent, academics and university administrators see quality as teaching and learning that gives students a mixture of skills and values such as social responsibility.

But lecturers must comply with the largely top-down approach to quality. They tend to do whatever will enhance students’ prospects of getting employment in a particular market.

The educators and students I interviewed acknowledged that developing the ability to work and to think critically were both central to higher education. But they admitted that these goals were hard to attain. This was because of the country’s constrained socio-political and economic environment. Academics and students felt that they couldn’t express themselves freely and critical thinking was suppressed.

Stuck on a road to nowhere
The study illustrates how an over-emphasis on creating human capital – skilled and knowledgeable graduates – limits higher education’s potential to foster broader human and social development.

University education should do more, especially in developing countries such as Zimbabwe that face not just economic, but also socio-political challenges. Before building more universities and enrolling more students, authorities and citizens should consider what quality education means in relation to the kind of society they want.

It’s possible to take a broader view of development, quality and the role of higher education. This broader approach – one that appreciates social justice – can equip graduates to address the country’s problems.

The road ahead
Universities can’t change a society on their own. But their teaching and learning practices can make an important difference.

Because quality teaching and learning means different things to different people, people need to talk about it democratically. Institutional and national policies must be informed by broad consultations to identify the knowledge, skills and values they want graduates to have.

University teaching and learning should emphasise freedom of expression and participation so that students can think and act critically beyond university.

Also, academics don’t automatically know how to teach just because they have a PhD. Universities should therefore ensure that academics learn how to teach and communicate their knowledge. Curriculum design, student assessment and feedback, as well as training of lecturers should all support this goal of human development.

When universities see quality in terms of human development, their role becomes more than production of workers in an economy. It gives them a mandate to nurture ethically responsible graduates. These more rounded graduates are better equipped to imagine an alternative future in pursuit of a better society, economically, politically and socially.

Patience Mukwambo: Researcher, University of the Free State

The Conversation

The Conversation

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