Acta Universitatis Danubius. Œconomica, Vol 15, No 6 (2019)

The dynamics of education and stokvels in South Africa

Lindiwe Ngcobo


The study investigated the dynamics of education and Stokvels in South Africa using a quantitative research methodology (descriptive statistics and correlation analysis) with data collected from the Gauteng province using questionnaires. Few authors have written on the subject matter and the author wanted to add her voice on the dynamics of education and Stokvels especially in the case of South Africa. The few related literature focuses on the role that stokvels plays on alleviating poverty and providing small credit to people who are excluded by formal financial institutions. The available literature on the relationship between stokvels, poverty and financial inclusion is still scattered, scant, inconclusive and signalling mixed results. To the best of the author’s knowledge, no study exist that has exclusively investigated the dynamics of education and stokvels in South Africa. The study found out that stokvels in the Gauteng province of South Africa were instrumental in the provision of not only education related small credit but also credit for groceries, transport, bridging loans, paying debts and guarantees. In line with literature, the correlation matrix shows a significant positive correlation between (1) education credit and groceries credit, (2) education credit and school uniform credit and (3) education credit and transport credit. The study therefore urges South African authorities to put in place policies that promotes the growth and safeguards the interests of stokvels as they are an important stimulant in the economy. Stokvels achieve this through their ability to improve financial inclusion by promoting savings and provision of small credit to people shunned by formal financial institutions.


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