A Stokvel is a type of credit union in which a group of people enter into an agreement to contribute a fixed amount of money to a common pool weekly, fortnightly or monthly.
Universally, such a system is known as a rotating savings and credit association, which is a group of individuals who agree to meet for a defined period in order to save together.
This financial system is not unique to South sAfrica, and exist worldwide.
They are also known as Chama in Swahili-speaking East Africa, Tandas in South America, Kameti in Pakistan, Partnerhand in the West Indies, Cundinas in Mexico, Ayuuto in Somalia, Hui in China, Gam’eya in the Middle East, Kye in South Korea, Tanomoshiko in Japan and Pandeiros in Brazil.