Non-profit organisation 'improving access to savings'
Many people living in South Africa could benefit from improved access to saving services, it has been reported.Many people living in South Africa could benefit from improved access to saving services, it has been reported.
AllAfrica reports that community savings clubs already exist in the country, which are traditionally known as stokvels.
However, there are many problems surrounding these initiatives, which see individuals contribute cash each month and take it in turns to receive the funds, local community group leader Fisani Zondi explained.
She said members often steal each other's money due to a lack of regulation.
In a bid to deal with the problem - and help the millions of people who do not have bank accounts - an organisation called SaveAct was established.
This non-profit group allows members, most of whom are women, to borrow small amounts at an interest rate of between five and ten per cent - far lower than the charges from loan sharks.
SaveAct also works to support and empower females and other vulnerable groups, as well as enabling individuals to create sustainable livelihoods.