THE EVOLUTION OF STOKVEL BEHAVIOUR
At Sum1 Investments, building a financially conscious and empowered community is more than just a mission — it’s a movement. It’s about shifting mindsets, nurturing habits, and enabling everyday people to take control of their financial futures, not just for themselves, but for generations to come.
When we first launched in 2020, many of our members approached Stokvels the way generations before them had — as short-term savings vehicles designed to meet immediate needs: school fees, groceries, December spending, or emergencies. And rightly so. For years, Stokvels have been a lifeline in many households. But what we’ve seen — and what excites us deeply — is how Stokvel behaviour is evolving.
From Withdrawals to Wealth-Building
For context, At Sum1, our Stokvels run on a 13-month cycle: you contribute for 12 months, then withdraw in the 13th. The only difference is funds are invested back in the community so Stokvels end their cycle with more money to use towards their respective financial goal. We didn’t want Stokvels to change too much about how they conduct their finances.
Here are the result:
In 2022, a whopping 74% of Sum1 members withdrew 100% of their savings at the end of their Stokvel cycle. Fast forward to 2024, and that figure dropped significantly to 43% of members withdrawing 100% of their funds.
This is not just a statistic — it’s a shift in mindset and behaviour. It’s a sign that more members are beginning to transition beyond short-term consumption to medium term growth. When people see the benefits of staying in the system — they stay.
In fairness part of that could be because members were testing us out in the early days. You know how it goes: “Let’s see if these ones are legit before we talk reinvesting.”
But we delivered and continue to deliver. And when members saw that their money grew and came back with interest, Stokvels searching for ways to build wealth finally had a place to go.
What changed in that period? We didn’t force anyone to reinvest. We didn’t lock them in beyond the stokvel cycle.
Here’s what we did instead:
What we did do was foster a safe, educational, and community-driven space that encouraged members to see the benefits of reinvesting – allowing learning to happen naturally. That’s why Sum1 focuses on learning by doing. Our members are making informed decisions because they’ve experienced the benefits. They see their funds grow, they track their progress, and they do it together. And we’ve learned that when people see real returns they exhibit behaviour to ensure they keep getting it.
The Rise of Intentional Saving
At Sum1 we’re witnessing a shift from “saving to spend” to saving with purpose. Members are now setting more longer term goals like buying property, funding studies and starting businesses because we have given them the means to do so.
Stokvels are evolving, it’s gradual but it’s happening. The behaviour is changing and the vision is expanding. At Sum1, we’re proud to be right in the middle of it all — building a future where wealth isn’t just for the few, but for the bold and the collective.