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

Lindy Mataboge  A Mentor, a Coach and a facilitator  Stokvel Coaching and administration  Social Entrepreneur  Programme 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

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 THE SOCIAL I NNOVATION

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

THEIR PRIORITIES MULTIPLE POLICIES Increase in Funeral policies From 15% in 2004 to33% in 2014 SAVINGS INVESTMENTS ( B/Day Parties, Building and Holidays) MULTIPLE LOANS/CREDIT (Debt clear stokvel) GROCERIES food and Cloths GROCERIES ( Buy food on credit) Family and extended family SCHOOL FEES Retail Accounts FUNERAL EXPENSES SAVINGS (Saving products)

DEBT CLEAR STOKVEL “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” STOKVELS 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 !!!!!

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

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 11  Lack of financial education, coaching and mentoring in stokvels  Lack of new stokvel models(Outdated strategies)  Poor Stokvel Administration ( proper stationery for easy recording- corruption  Lack of support from all game players, the banking sector, government, marketers/corporate

Economic Statistics Statistics released by credit industry regulators indicate the following: ( as at sept 2015) 19, 69 million credit-active consumers; million (53.0%) consumers in good standing; 9.25 million (47.0%) consumers have impaired records

Stokvel Statistics Statistics cited in NASASA shows that; 11,4 million individual Stokvel members Over Stokvels R44bn/year turnover Burial society money in bank ???

How do we strengthen STOKVELS? 14

COACHING AND MENTORING

16 SMARTER LADIES CLUBS

12/09/ SMARTER LADIES CLUBS

18 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

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

20 Thank you!!!