STOKVEL BUSINESS MANAGEMENT Their priorities the realities of

STOKVEL BUSINESS MANAGEMENT Their priorities, the realities of working with them BY LINDY MATABOGE SMARTER LADIES CLUBS Powe red by

Lindy Mataboge § A Mentor, a Coach and a facilitator § Stokvel Coaching and administration § Social Entrepreneur § Programme Manager @ Wits Centre for Entrepreneurship § Masters in Entrepreneurship major in Social Entrepreneurship

WHY STOKVEL STRUCTURE? • Its an INDIGENOUS KNOWLEDGE that everyone understands • SAFETY NET for millions of South Africans who can’t access credit from formal financial services • It CAN BE instrument and a channel to extend credit to poor household in S. A

THE SOCIAL INNOVATION STOKVEL § Stokvels provides a service that builds self-sufficiency and hope: § EMPOWERS disenfranchised women and men(unemployed, underemployed) to be SELF RELIANT. We offers AWARENESS workshops( from Financial wellness to entrepreneurial Skill) § We provide SAVING TOOLS (Stokvel model) to help them understand money matters § Grameen Bank Model in Urban areas

STOKVELS How do they learn in Stokvels • PRACADEMIC( PRACTICAL) • EFFECTUATION THEORY • REPUTATION AND TRUST • SLOWLY INTRODUCE NEW PRODUCTS 5

THEIR PRIORITIES • GROCERIES • food and Cloths GROCERIES ( Buy food on credit) Family and extended family SAVINGS (Saving products) • SAVINGS • INVESTMENTS • ( B/Day Parties, Building and Holidays) • MULTIPLE LOANS/CREDIT SCHOOL FEES Retail Accounts • (Debt clear stokvel) FUNERAL EXPENSES • MULTIPLE POLICIES • Increase in Funeral policies • From 15% in 2004 to 33% in 2014

STOKVELS DEBT CLEAR STOKVEL NO TO DEBT CONSOLIDATION !!!!!! NO TO DEBT RESCUE!!!!!! NO TO DEBT REVIEW !!!!!!! NO TO DEBT COUNSELLING YES TO DEBT CLEAR STOKVEL YES TO DEBT FREE LADIES !!!!! “Debt consolidation is a “con” because it dupes you into thinking you’ve done something about your debt. In fact, your debt is still there – you’ve just moved it, they say. And the habits that landed you in debt probably haven’t disappeared either”

BOND REPAYMENT STOKVEL No moore 20 years to repay bond? ? ? We can do it in 3 years!!!! R 200 000, 00 BOND Contribution = R 5000. 00 stokvel for 3 years… Lerato Sindy Year 1 = Each year bonds balance are reduced by R 60 000 excluding normal repayments Before the end of Year 3 the 3 bonds are fully paid up and members have access money in their bond account to start a business Brenda

What's the latest on Stokvels STOKVELS ARE SCAMMED by BOGUS INVESTMENTS PYRAMID SCHEMES PREYS STOKVEL NO REAL SAVINGS IN STOKVEL ( JAN- DECEMBER)

CURRENT CHALLENGES • STOKVELS ARE PREYS TO SCAMS AND PYRAMID SCHEMES • BANKING SECTOR – CONTINUE TO LEVERAGE ON THEIR VULNERABILITY • STOKVELS ARE BECOMING A DAMPING SPACE FOR MARKEKERS AND WHOLESALERS( African market)

Reasons Why Stokvel don’t grow q. Lack of financial education, coaching and mentoring in stokvels q. Lack of new stokvel models(Outdated strategies) q. Poor Stokvel Administration ( proper stationery for easy recording- corruption q. Lack of support from all game players, the banking sector, government, marketers/corporate 11

Economic Statistics released by credit industry regulators indicate the following: ( as at sept 2015) 19, 69 million credit-active consumers; 10. 45 million (53. 0%) consumers in good standing; 9. 25 million (47. 0%) consumers have impaired records

Stokvel Statistics cited in NASASA shows that; • 11, 4 million individual Stokvel members • Over 811 000 Stokvels • R 44 bn/year turnover • Burial society money in bank ? ? ?

How do we strengthen STOKVELS? 14

COACHING AND MENTORING

SMARTER LADIES CLUBS 16

SMARTER LADIES CLUBS 12/09/2015 17

STOKVEL Coaching Includes • How to run their stokvel --‐spiritual, emotional, mental, vocational, financial, familial, social, physical • Stokvel business phase: Starting it --‐What are they doing, why and how? • Goals: Learning how to articulate short, medium and long term goals • What is available them, and how do I use it ( pool of cash). Starting to implement learning ie finance , cash, credit etc • Practice and habits ---Managing change: Dealing with uncomfortable habits that need changing • Share Stokvel stories -What is happening out there 18

People outside the Stokvel always spot the gap and leave with stokvel money HOW we can help Stokvels ? ? ?

Thank you!!! • Lindy. mataboge@wits. ac. za • Lineempowerservices@gmail. com 073 3440732 20