By Qiniso Ntuli
Stokvels are said to make up a multi-billion rand industry in South Africa. Stokvels are a form of collective saving where the participants contribute on a monthly basis for one purpose or another.
Let us take a look at some of the different types of stokvels that exist. A stokvel can be rotational or cumulative. In a rotational stokvel, the contributions are paid to a member on a rotational basis, normally monthly. For example, where there are 12 members, each member gets their lump sum on a certain month. This type of stokvel is one we find rather pointless but we shall elaborate further later.