THE POWER OF STOKVELS: The rise of stokvels - From informal savings to a powerful consumer base
Once viewed purely as informal savings clubs, stokvels have become a formidable consumer segment with substantial collective buying power. According to a 2024 Ipsos market study, the stokvel sector contributes over R50 billion annually and comprises more than 800 000 groups, with a combined membership of 11 million people. These members pool their resources for everything from groceries and appliances to big-ticket items like motor vehicles, presenting the retail sector with a unique opportunity to rethink how it engages with this highly organised and motivated customer base. The study also highlights how stokvels have evolved beyond what many still see as simple savings schemes. Once the domain of older generations, they increasingly attract younger members and individuals from higher income brackets.
Busi Skenjana, Founder of the Stokvel Academy and author of Stokvel Voices: The Truth, Illusions, and Opportunities, says that stokvels are no longer where the gogos and aunties save – they’ve become sophisticated financial networks attracting younger professionals and higher-income earners who recognise the power of collective buying and saving." The stokvel culture is still very much alive, but it’s evolving,” says Skenjana. “There’s the ‘then’, the ‘now’ and a glimpse into the future. While some aspects remain the same, exciting new developments are taking shape.”
At its core, she says, stokvels remain rooted in social cohesion – ubuntu – helping one another, especially in times of need. “That’s why burial stokvels remain the most common. They offer vital support during times of loss. Grocery stokvels are widespread, particularly in rural South Africa, where mothers continue to find creative ways to provide for their families’ basic needs.” “Stokvels are not static,” she emphasises. “There’s a growing shift toward understanding what stokvels can do for you. The younger generation, in particular, is exploring new ways to use these platforms to build wealth and pursue opportunities." Her sentiments are echoed by FNB, which has found that stokvel savings continue to grow despite South Africa’s challenging economic climate. In 2024, the bank recorded a 15% increase in net deposits, underscoring the sector’s resilience and commitment.
FNB alone saw total member contributions exceed R9.6 billion for the year. According to Skenjana, stokvels are, for the most part, a mixed bag of the old and the new. While traditional models remain firmly in place, particularly grocery stokvels, which still make up a significant portion, a noticeable shift has occurred. “Grocery stokvels are still very popular, especially among women who use them to ensure their families have enough food during the festive season or to stock up in bulk and save throughout the year,” she says. At the same time, the younger generation is showing growing interest in stokvels that focus on long term investments, wealth creation and financial growth opportunities beyond basic needs.
Change creates new opportunities
Lehlohonolo Ndawo, Co-founder and Chief Executive Officer at the Digital Stokvel Platform (DSP), says the change was inevitable. “Digital platforms now enable stokvels to manage funds securely, access a wider range of financial products and make bulk purchases more efficiently,” she says. “Stokvels drive significant group spending in retail, particularly in groceries, furniture and household essentials. Retailers that recognise their influence can tap into a highly loyal and structured customer base.” She says that stokvel members prioritise affordability, bulk discounts and quality products. “They plan their purchases in advance, seeking retailers that offer tailored deals, special pricing and reliable product availability. Service matters too – stokvels value easy payment options, convenient collection or delivery and a seamless shopping experience.” It is all about adding value, says Skenjana.
“Retailers who go the extra mile – offering incentives like bonus vouchers, loyalty rewards or even financial education – stand a better chance of winning stokvel business. These groups are organised, intentional and loyal. If you speak to their needs, they’ll keep coming back.” According to Skenjana, new bulk-buying categories are emerging within the stokvel space. In addition to traditional goods like groceries, there’s an increasing demand for household items such as blankets, catering equipment, and even larger appliances. “As stokvels evolve, members are expanding their focus to include more diverse product categories that cater to both everyday needs and special events, like bulk purchases for family gatherings, community celebrations, or even small business ventures,” she says. Unlike individual bulk buyers, stokvels operate as organised, repeat-purchase customers. Their pooled funds give them greater purchasing power, making them an attractive proposition for retailers. Because they shop collectively, stokvels are highly brand-loyal – once they find a retailer that meets their needs, they return regularly.
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