“In essence, a stokvel is a community. There is always a clear starting point where they met and [it’s evident] who the founding members are.
Palesa Lengolo, the author of Stokvels: How they can make your money work for you, says that, while anybody can start a stokvel, the question should be whether it really is a stokvel or the founders are disguising it as one. If you invest using a platform such as Fedgroup or SV Capital to buy motorbikes, cattle or vegetables, those are investments, not a stokvel.
She adds that a common feature of all these scams is their ability to package themselves to look attractive. When a stokvel makes an investment decision, it is important for the members to understand the risks involved. .
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