Abstract
This study examines the role of stokvels as a mechanism for poverty alleviation in Ga-Rankuwa, Pretoria, within the context of South Africa's ongoing challenges of poverty, unemployment, and inequality. Employing a qualitative research approach within an interpretivist paradigm, the study gathered rich, empirical data through semi-structured interviews with fifteen stokvel members. A thematic analysis of the findings revealed that stokvels function as multifaceted institutions transcending mere financial transactions. They serve as emergency financial lifelines during crises, with trust operating as their foundational social infrastructure. Beyond economics, stokvels provide significant emotional and psychological benefits, fostering a sense of belonging and collective empowerment.
The study identifies effective, internally governed structures as critical to their operational sustainability. The research concludes that stokvels are sophisticated, indigenous business models that successfully alleviate poverty by integrating financial services with social capital. Recommendations are offered for an enabling regulatory framework that protects members without stifling the community-embedded flexibility that underpins their success, advocating for their recognition as vital components of a diverse financial landscape.