Power in numbers
Twelve years ago, the Ya Rona Club transformed itself from an informal savings club, which facilitated a social gathering of friends, to a long-term, sustainable investment club. “We reached a point where we did not want a stokvel where we just bought alcohol. Soon, more people started to join, (people) who had the same kind of thinking,” says Chipane Kgaphola, chairperson of Ya Rona, which currently has 11 members, all of whom are professional males who either have their own businesses or hold senior positions.
The amount is added to the club’s share portfolio, but in January each year, those who wish to draw on their short-term savings are entitled to withdraw up to R6 600 (equivalent to R550 a month) – this is usually used to pay school fees. Those members who do not need the funds simply leave them to grow in the investment fund.
Kgaphola says initially it was a challenge to convince members to invest in shares. “We had to educate members about shares.
There were fears about how safe their money was. Those members who stayed and bought into the club’s vision have been rewarded.
Over 12 years, the share portfolio has grown to nearly R1 million.... Read the full, comprehensive news article and discuss at City Press