Grocery stokvels can empower South African households

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To address the challenges posed by rising food prices, grocery stokvels are structured to help their members make purchases at outlets that focus on bulk sales. This strategy aims to bring some relief to household budgets. Setting up grocery stokvels, however, requires careful planning to ensure that they are effective.

“Many stokvel and saving groups buy groceries from wholesalers or cash and carry outlets with whom they save directly. In other groups, funds accumulate in a stokvel club account, and the collected funds are used to make bulk purchases for members,” says Mpudi Maubane, National PR, Communications & Sponsorships manager at The Spar Group.

As with all community-based financial structures, starting a successful grocery stokvel that benefits its members is about more than just innovative strategies.

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“It's about fostering a sense of community, shared responsibility, and a larger support network. It is this approach that makes grocery stokvels genuinely impactful”, says Maubane.

To save money and provide the best for members, a grocery stokvel should have:

• Clear goals and budgets: Before diving into grocery buying, financial goals and budgets must be decided and set. This involves determining the membership size of the scheme, setting an affordable fee acceptable to all members, and setting a portion aside each month for buying groceries.

• A mutually agreed planning and decision-making structure: To succeed and meet the grocery requirements of all members, they must meet before each buying cycle to discuss purchases, food preferences and the budget required for shopping. Consensus is critical in deciding what foodstuffs will be bought and the quantities required.

• Accurate financial records: Trust and accountability are the cornerstones of any stokvel. Accurate record-keeping is essential to track contributions, expenses, and savings. Having a member who acts as a treasurer or financial officer and reports regularly to members is advisable.

• A bulk purchasing strategy: Trusted representatives must liaise with wholesalers and retailers to negotiate bulk discounts and pay across the necessary funds. To prevent the boredom that can result if people buy the same things every month, each member should have a chance to lead buying trips.

• Distribution: After purchasing, a routine should ensure that each member receives their fair share of the goods purchased.

“Smart shopping is just as crucial for stokvels as for individuals. Members entrusted with buying must compare prices at different stores – Spar versus SuperSpar stores for example, where prices can differ – and consider promotions, special offers, discounts, and loyalty programmes, such as Spar Rewards, which can help shoppers save money. Getting discounts is the name of the game and this will require shopping around to get the best prices” says Maubane.

The success of any stokvel depends on having clear communication amongst members and ensuring that everyone makes regular, consistent contributions so that a steady pool of funds is available for buying groceries and keeping the society financially stable.

“Despite these operational considerations, grocery stokvels embody the unique spirit of Ubuntu—the community spirit that emphasises collaboration, mutual support, and collective prosperity. Effective stokvels are a testament to the resilience and resourcefulness of communities working together to navigate economic challenges, providing a model for inclusive economic participation,” concludes Maubane.