A Stokvel is a uniquely South African term which refers to a group saving scheme, stokvels are formed by a group of members and make regular contributions towards a particular purpose(s) such as providing financial assistance to its members and can even extend to bulk buying, burial assistance etc.
In 2007, a research by Old Mutual indicated that informal savings circulating outside the financial sector had grown to R33 billion over the last decade.
In 2011, a study conducted by African Response indicated:
Whilst Stokvels are regulated in terms of the Bank Act Exemption, they however, remain informal and continue to be self-regulated as approved by the Bank Act Exemption provision.