Gambling risk hits stokvel savers and retirement funds

Experts want better financial education and bank products specifically tailored for stokvels. More than half of all stokvel savers turned to gambling at least once in the past year due to financial distress, showing that even disciplined savers can engage in risky financial behaviour. The finding comes from the Rogerwilco 2026 Township Customer Experience (CX) Report, launched in partnership with Field & Insights Africa on 22 September. Now in its sixth year, the report draws on a survey of 1 600 township residents nationally. It examines spending patterns and life in the townships, where participants this year also reported frequent power and water disruptions. Stokvel savers gamble Half of all respondents gambled in the past year, while 35% belonged to a stokvel. Among stokvel members, 55% gambled at least once. Speaking at the launch, author, financial inclusion specialist and stokvel expert Palesa Lengolo said financial discipline does not necessarily stop people from taking risks when under pressure. “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.” Lead author of the Township CX Report and senior brand strategist at Rogerwilco, Mongezi Mtati, reiterated the point. “We make the mistake of thinking that responsible, disciplined people don’t take these risks, but they actually do. We need to address gambling in the financial literacy space and help people deal with financial pressures.” Gambling threatens financial security The behaviour is not confined to township savers, with retirement-fund providers also warning that gambling can threaten long-term financial security. Speaking at the recent Institute of Retirement Funds Africa (Irfa) conference, Discovery Corporate & Employee Benefits chief commercial officer Guy Chennells said South Africa has one of the highest online gambling rates among people aged 16 and older globally. He said only Norway has a higher rate. “We do not have the income per capita to gamble at the same rate as Norway. This is a real problem that is coming for our members’ retirement futures, and we need to be aware of it right now.” What stokvels need from banks Despite the economic pressures facing township residents, Lengolo said people continue to contribute to stokvels because of the accountability they provide. “When they collaborate and stay together, they are able to reach their financial goals.” The report cited market research firm Ipsos, which estimates that more than 800 000 active stokvels hold around R50 billion a year for some 11 million members. Most of this money sits outside the formal banking system. Lengolo, who has worked in financial services, said banks needed to develop products specifically for stokvels rather than simply offering them bank accounts. Members are willing to pay extra for services that improve their financial management, even when larger institutions overlook them, she said. Such value-added services could include stokvel constitutions and direct digital communication with members, replicating some of the structures and behaviours that underpin stokvel groups. The 2026 Township CX Survey also cited research by health economist Dr Akim Tafadzwa Lukwa and colleagues, published in the Journal of Nutrition Education and Behavior. The researchers examined 20 grocery stokvels in Dunoon and Khayelitsha. The groups had between 10 and 30 members, who contributed between R200 and R1 500 a month. All operated under constitutions, and women led 95% of them. The research “found that accountability of that kind is social rather than contractual, since a missed contribution is visible to people the member will see again and that visibility works in ways that no debit order can replicate”. The 2026 Township CX Survey found that 61% of stokvel members saved for a large annual expense. Bulk-buying power and funeral or emergency support followed at 12% each. A further 44% of stokvel members said they had contributed to a stokvel for at least seven years. This article was republished from Moneyweb. Read the original here.