Hostname: page-component-7479d7b7d-767nl Total loading time: 0 Render date: 2024-07-11T02:11:35.909Z Has data issue: false hasContentIssue false
  • English
  • Français

Informal Financial Service Institutions for Survival: African Women and Stokvels in Urban South Africa, 1930–1998

Published online by Cambridge University Press:  18 February 2015

Grietjie Verhoef
Get access Rights & Permissions [Opens in a new window]

Abstract

Traditional kinship relations denied African women access to property and cash income. As they moved out of the traditional sector to urban centers, women created opportunities for independent earnings, and they displayed remarkable entrepreneurial spirit in undertaking informal economic activities. One of their tactics was the utilization of a type of rotating credit and savings organization (ROSCA), the stokvel, to mobilize savings outside the formal financial structure. This article brings together scattered research on stokvels, traces their past and present uses by African women, and concludes with an exploration of the reasons for the persistence of these forms despite the development of sophisticated financial structures in modern South Africa.

Type
Articles
Information
Enterprise & Society , Volume 2 , Issue 2 , June 2001 , pp. 259 - 296
Copyright
Copyright © Enterprise and Society 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bibliography of Works Cited

Books

Bozzoli, Belinda. Women of Phokeng: Consciousness,Life Strategy and Migrancy in South Africa, 1900-1983. Johannesburg, 1991.Google Scholar
Hammond-Tooke, W. D., , ed. The Bantu-Speaking Peoples of Southern Africa. 2d ed. London, 1974.Google Scholar
Hellman, Ellen. Rooiyard, a Sociological Survey of an Urban African Slumyard. Oxford, 1948.Google Scholar
Integrated Marketing Information Group. Consumer Scope. Sandton, 1996.Google Scholar
Lukhele, Andrew Khehla. Stokvels in South Africa: Informal Savings Schemes by Blacks for the Black Community. Johannesburg, 1990.Google Scholar
Mayer, Philip. Townsmen or Tribesmen: Conservatism and the Process of Urbanization in a South African City. Cape Town, 1971.Google Scholar
Mayer, Philip, ed. Black Villagers in an Industrial Society: Anthropological Perspectives on Labour Migration in South Africa. Cape Town, 1980.Google Scholar
Preston-Whyte, Eleanor, and Rogerson, Christian, eds. South Africa's Informal Economy. Cape Town, 1991.Google Scholar
Schapera, Isaac, ed. The Bantu-Speaking Tribes of South Africa. London, 1959.Google Scholar
South African Government, Ministry for Welfare and Population Development. White Paper on Welfare. Pretoria, 1997.Google Scholar
Wilson, Monica, and Thompson, Leonard M., eds. The Oxford History of South Africa, 2 vols. Oxford, 1975.Google Scholar
World Bank, . World Development Report, 1989. New York, 1989.Google Scholar
Ardener, Shirley. “The Comparative Study of Rotating Credit Associations.” Journal of Royal Anthropological Institute, 94 (1964): 201–29.Google Scholar
Baerends, Els A. “Changing Kinship, Family and Gender Relationships in Sub-Saharan Africa.” In Negotiation and Social Space: A Gendered Analysis of Changing Kin and Security Networks in South Asia and Sub-Saharan Africa, ed. Risseeuw, Carla and Ganesh, Kamala. New Delhi, 1998, pp. 47–86.Google Scholar
Bahre, E. “Wij Zullen Onze Beenderen in Waardigheid Begraven.” Cahier 4, no. 1 (1995): 20–29.Google Scholar
Besley, Timothy. “Savings, Credit and Insurance.” In Handbook ofDevelop-ment Economics, vol. 3A, part 9, ed. Behrman, J. and Srinivasan, T. N.. Amsterdam, 1995, pp. 2123–2207.Google Scholar
Besley, Timothy, and Levenson, Alec R.. “The Role of Informal Finance in Household Capital Accumulation: Evidence From Taiwan.” Economic Journal 106 (1996): 39–59.Google Scholar
Besley, Timothy, Coate, Stephen, and Loury, Glenn. “Rotating Savings and Credit Associations, Credit Markets and Efficiency.” Review of Economic Studies 61 (1994): 701–19.Google Scholar
Besley, Timothy. “The Economics of Rotating Savings and Credit Associations.” American Economic Review 83, no. 4 (1993): 792–810.Google Scholar
Burman, Sandra, and Lembete, Nozipho. “Building New Realities: African Women and ROSCAs in Urban South Africa.” In Money-Go-Rounds: The Importance of Rotating Savings and Credit Associations for Women, ed. Ardener, Shirley and Burman, Sandra. Oxford, 1995, pp. 23–47.Google Scholar
Burnett, C. “Die 'Stokvel' as Rekreasie-Aktiwiteit in Gedepriveerde Gemeen-skap.” South African Journal for Research in Sport Physical Education and Recreation, 19 (1996): 17–27.Google Scholar
Calomiris, Charles W., and Rajaraman, Indira. “The Role of ROSCAs: Lumpy Durables or Event Insurance?” Journal of Development Economics 56 (1998): 207–16.Google Scholar
Cross, Catherine. “Informal Lending.” Indicator SA 4, no. 3 (1987): 87–92.Google Scholar
Franks, Peter, and Shane, Simon. “Building Commerce through Co-Operatives.” SA Indicator 6, no. 1-2 (1989): 109–12.Google Scholar
Hellman, Ellen. “The Importance of Beer-Brewing in an Urban Native Slum Yard.” Bantu Studies 8 (1934): 39–60.Google Scholar
Henning, J. J., Viljoen, D. J., and Merwe, D. H. L. van der. “Die Stokvel, Enkele inleidende opmerkings oor terminologie en omskrywings.” Tydskrif vir Hedendaagse Romeins-Hollandse Reg 59 (1996): 100–106.Google Scholar
Kuper, H., and Kaplan, S.. “Voluntary Associations in an Urban Township.” African Studies 3 (1944): 178–86.Google Scholar
Levenson, Alec R., and Timothy Besley. “The Anatomy of an Informal Financial Market: ROSCA Participation in Taiwan.” Journal of Development Economics 51 (1996): 45–68.Google Scholar
Moodley, L. “Three Stokvels in the Urban Black Township of Kwa Ndangezi, Natal.” Development Southern Africa 12, no. 3 (1996): 361–66.Google Scholar
Moore, B. J., and Schoombee, G. A.. “Bank Credit to the Informal Sector: Challenge and Reward.” Development Southern Africa 12 (June 1995): 347–60.Google Scholar
Schulze, W. G. “The Origin and Legal Nature of the Stokvel: Part 1.” South African Mercantile Law Journal 9 (1997): 18–29.Google Scholar
Schulze, W. G. “The Origin and Legal Nature of the Stokvel: Part 2.” South African Mercantile Law Journal 9 (1997): 153–70.Google Scholar
Schulze, W. G. “Stokvels. Part 1: People's Insurance.” Journal of Business Law 4, no. 2 (1997): 78–81.Google Scholar
Smets, Peer. “Community-Based Finance Systems and Their Potential for Urban Self-Help in a New South Africa.” Development Southern Africa 13, no. 2 (1996): 173–87.Google Scholar
Srinivas, Hari, and Higuchi, Yoichiro. “A Continuum of Informality of Credit: What Can Informal Lenders Teach Us?” Savings and Development 20, no. 2 (1996): 207–21.Google Scholar
Verhoef, Grietjie. “Community Banking for Development, The Case of Community Bank, 1994-1996, in Comparative Perspective.” South African Journal of Economic History 15, pt. 1 and 2 (Sept. 2000): 134–58.Google Scholar
Black Enterprise. 1988-1990.Google Scholar
Drum. 1990-1995.Google Scholar
Enterprise. 1991, 1995.Google Scholar
Financial Mail. 1990.Google Scholar
Finance Week. 1995.Google Scholar
The Sowetan. 1991.Google Scholar
The Star. 1992.Google Scholar
Buijs, Gina, and Atherfold, Glen. “Savings and Money-Lending Schemes: How Rotating Credit Associations Help Poor Families.” Co-Operative Research Programme on Marriage and Family Life, Human Sciences Research Council. Pretoria, 1995.Google Scholar
Development Bank of Southern Africa (DBSA), Midrand, South Africa. Minutes of Board Meeting, 18 Feb., 18 March 1993.Google Scholar
Development Bank of Southern Africa (DBSA), Midrand, South Africa. Minutes of People's Benefit Scheme Management Meeting, 21 Oct. 1994.Google Scholar
Development Bank of Southern Africa (DBSA), Midrand, South Africa. Google Scholar
Development Bank of Southern Africa (DBSA), Midrand, South Africa. “NASASA 'People's Fund' Unit Trust.” Internal report, 11 Feb. 1993.Google Scholar
de Gasparis, Priscilla. Development Bank of Southern Africa Report. 10 Nov. 1992.Google Scholar
du Plessis, P. G. “The Micro Lending Industry in South Africa, 1997.” Report compiled for the Micro Lending Association of South Africa, University of Stellenbosch, July 1998.Google Scholar
Höck, C. “The South African Microfinance Industry: The State of Play, the Potential and the Pitfalls.” Paper presented to the South African Reserve Bank Seminar on Informal Financing, 7 Aug. 1996.Google Scholar
Japp, Steven. “The Role of Stokvels and Representative Bodies in the RSA.” Paper presented to the South African Reserve Bank Seminar on Informal Financing, 7 Aug. 1996.Google Scholar
Kirsten, Marie. “Development Bank of Southern Africa,” NASASA Case Study 2 (4 June 1993). Development Bank of Southern Africa. Google Scholar
Lipschitz, L., et al. “South Africa, Selected Economic Issues,” IMF Staff Country Report, no. 95/21.Google Scholar
Loots, A. E. “Die Belangrikheid van die Informele Sektor In Die Suid-Afrikaanse Ekonomie.” M.Com. diss., Rand Afrikaans University, 1991.Google Scholar
Lukhele, Andrew Khehla. “Stokvels Milestone, 1988-1998.” NASASA document. Johannesburg, 1999.Google Scholar
Maheter, C. First National Bank, Interview with author, Johannesburg, 20 July 1999.Google Scholar
Memani, K. “Practical Issues Regarding Informal Financing.” Paper presented to South African Reserve Bank Seminar on Informal Financing, 7 Aug. 1996.Google Scholar
Mills, J. “Memorandum to Development Bank Entrepreneurial Division.” 14 Sept. 1995. Development Bank of Southern Africa. Google Scholar
Mills, J. “The People's Benefit Scheme-A Generic Financial Instrument To Enhance Stokvel Savings and Provide Access To Geared Loans.” Internal report, 3 Aug. 1993, Development Bank of Southern Africa.Google Scholar
Porteous, D. “Tears for the Unbanked/Tiers for the Unbanked.” Paper presented to the South African Reserve Bank Seminar on Informal Financing, 7 Aug. 1996.Google Scholar
RP 108/1996, “Final Report of the Commission of Inquiry into the Provision of Rural Financial Services.” Pretoria, 1996.Google Scholar
RP 38/1996, “Interim Report of the Commission of Inquiry into the Provision of Rural Financial Services.” Pretoria, 7 March 1996.Google Scholar
Tager, L. “Legal Aspects of Stokvels.” Paper presented to the Center for Business Law, University of the Orange Free State, 1994.Google Scholar
Towers, Roanne, Wiphold. Communication with author via email, 18 Feb. 2000.Google Scholar