Gambling risk hits stokvel savers and retirement funds
Experts want better financial education and bank products specifically tailored for stokvels.
The Rogerwilco 2026 Township Customer Experience (CX) Report, released in September, reveals that a majority of stokvel savers have turned to gambling at least once due to financial distress. The study, conducted on 1,600 township residents, highlights that 55% of stokvel members gambled in the past year. Financial expert Palesa Lengolo emphasized that financial discipline does not prevent people from taking risks when under pressure, stating that "financial literacy cannot be only about teaching people how to spend.
We should also be teaching people how to address financial pressures, how to manage financial behaviour, and how to manage risk." Guy Chennells, Discovery Corporate & Employee Benefits chief commercial officer, warned that gambling threatens the long-term financial security of retirement fund members. South Africa has one of the highest online gambling rates among people aged 16 and older globally, with only Norway having a higher rate.
Stokvels play a crucial role in township residents' financial lives, with over 800,000 active stokvels holding around R50 billion annually for 11 million members. Banks should develop products tailored for stokvels, including constitutions and direct digital communication, as members are willing to pay for services that improve their financial management.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
