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Sustaining Grocery Stokvels: The Dynamics And Factors That Influence Their Establishment

Author

Listed:
  • Mabika Shingirirayi

    (Cape Peninsula University of Technology, Cape Town 7535, South Africa)

  • Tengeh K. Robertson

    (Cape Peninsula University of Technology, Cape Town 7535, South Africa)

Abstract

As many are effectively excluded from availing themselves of the services of financial institutions in the formal sector, they often form stokvels, an informal method of saving which is commonly practised in their home country. The research study was conducted to investigate the dynamics of Zimbabwean grocery stokvels in Cape Town and the factors which have encouraged their formation. A mixed-methods approach was adopted, and both quantitative and qualitative research methods were used to collect the data. The quantitative data was obtained through the administration of a survey questionnaire. In contrast, the qualitative data was obtained by conducting one-on-one semi-structured interviews with leaders of Zimbabwean grocery stokvels, their spouses, and members of their families who did not belong to their stokvels. The qualitative data was augmented through the taking of field notes during the interviews. The results indicate that Zimbabweans in Cape Town form grocery stokvels due to severe shortages of basic necessities in Zimbabwe. Their participation in stokvels enables them to accumulate funds to purchase the groceries which they need to sustain themselves and their families in the absence of assistance from financial institutions in the formal sector and also to assist their families and relatives in Zimbabwe to cope with their dire economic circumstances by sending groceries to them.

Suggested Citation

  • Mabika Shingirirayi & Tengeh K. Robertson, 2021. "Sustaining Grocery Stokvels: The Dynamics And Factors That Influence Their Establishment," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(2), pages 69-86, June.
  • Handle: RePEc:rom:bemann:v:11:y:2021:i:2:p:69-86
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    References listed on IDEAS

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    3. Marguerite S. Robinson, 2001. "The Microfinance Revolution," World Bank Publications - Books, The World Bank Group, number 28956.
    4. Thieme, Susan., 2003. "Savings and credit associations and remittances : the case of Far West Nepalese labour migrants in Delhi, India," ILO Working Papers 993632993402676, International Labour Organization.
    5. Robertson K. Tengeh & Linus Nkem, 2017. "Sustaining Immigrant Entrepreneurship in South Africa: The Role of Informal Financial Associations," Sustainability, MDPI, vol. 9(8), pages 1-16, August.
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