Informal Financial Service Institutions for Survival: African Women and Stokvels in Urban South Africa, 1930–1998

Abstract

Traditional kinship relations denied African women access to property and cash income. As they moved out of the traditional sector to urban centers, women created opportunities for independent earnings, and they displayed remarkable entrepreneurial spirit in undertaking informal economic activities. One of their tactics was the utilization of a type of rotating credit and savings organization (ROSCA), the stokvel, to mobilize savings outside the formal financial structure. This article brings together scattered research on stokvels, traces their past and present uses by African women, and concludes with an exploration of the reasons for the persistence of these forms despite the development of sophisticated financial structures in modern South Africa.