The study reveals a strong 'caring' behaviour among Africans toward savings. In this regard, stokvels, burial societies (Makgotlas) and grocery schemes are among the most popular savings mechanisms that provide moral support and generate a strong sense of solidarity (Ubuntu).
The study showed a clear preference for group saving schemes or saving societies rather than banking at formal institutions. Low trust in bank advisors and too many complicating/duplicating savings products were cited as major reason for not considering banking institutions. Despite this, burial society member contributions are kept in bank accounts to earn interest or are invested in endowment policies with insurance companies. It is especially more affluent Africans that have started to engage in investment stokvels.
According to Tustin, investment in property and education were cited as the most attractive savings mechanism. Besides economic factors such as low economic growth and the increased cost of living, family typologies (large households and households with children) and the advertising industry were cited as major factors affecting people's ability to save.
More specifically, the study revealed that brand-conscious and impulsive consumers in particular, are largely exploited by the advertising industry, which makes it difficult for people to resist purchasing temptations.
The 154-page report on savings behaviour among Gauteng consumers is available from the Bureau of Market Research at Unisa.
