BULK SAVINGS: How one food stokvel helps 45 North West families fight hunger

In Tsetse Village, outside Mafikeng, a food stokvel named Reabetswe Food Stokvel has been helping 45 North West families combat hunger. Led by neighbours Mapiti Seleka, Kedisaletse Molefe, and Katlego Malgas, the group pools R370 monthly contributions from households to collectively purchase groceries, toiletries, and snacks in bulk.

Seleka, an unemployed mother of a six-year-old, shares that with the support of the stokvel, her family can now buy a variety of foods including juice, biscuits, and meat, which they previously couldn't afford due to December being a challenging time. Before the stokvel, the family relied on a social grant and loans from informal moneylenders to make ends meet.

The stokvel was established three years ago after Seleka approached her neighbors with concerns about the ineffectiveness and lack of variety in the previous stokvel. The group now has 45 members contributing R370 each month, allowing them to purchase food in bulk, stretch their budgets, and avoid debt during the holiday season when food costs usually rise.

Stokvels, or rotating savings and credit schemes, are a significant part of South Africa's informal economy, with over 800,000 groups and 11 million members. Grocery-focused stokvels are particularly common, helping families buy food at lower prices and stretch their limited incomes. While these schemes can lead to discounts and bulk purchases, researchers caution that a focus on affordability may not always result in healthier food choices.