Stokvels to access B-BBEE opportunities via TIP One
TIP One, the ZAR X listed company that is building a portfolio of BEE schemes that are invested into listed companies, is pleased to announce that the B-BBEE Share Scheme Stokvel Club will be making investment allocations to TIP One. The B-BBEE Share Scheme Stokvel Club can be found on the StokFella online stokvel platform which won the 2020 MTN App of the Year (Best Financial Solution Award).
Lemao Ditodi, Financial Director of TIP One, says “We believe that B-BBEE focused stokvels will create access for investors who have typically not participated in BEE transactions in South Africa, and thus drive broad-based financial inclusion and accessibility in the country.”
Tshepo Moloi, founder and CEO of StokFella, adds “While stokvels have traditionally played a short-term savings role in South Africa, we believe that they have a critical role to play in long-term wealth creation for their members and restructuring entrenched economic inequalities. For example, we have franchise and property investment stokvels on our platform which are not only creating wealth but also jobs for their members. By hosting B-BBEE focused stokvels on our platform, it now becomes an easy way for stokvel members to participate in BEE schemes. As StokFella, we love endorsing such stokvels.”
According to Ditodi, BEE schemes own an estimated R400bn of JSE-listed equity but most schemes are complex or not investor friendly. “Beyond the inaccessibility of many BEE schemes, and the often very long lock-in periods usually associated with these schemes, how does the average person decide which BEE scheme to participate in, or how to even diversify relatively small investment amounts cost effectively? TIP One aims to solve these problems for investors and now, by linking the old custom of stokvels with the digital StokFella platform, we can broaden this impact with these B-BBEE focused stokvels. Stokvel members will now be able to participate in BEE schemes in a simple, user-friendly and cost-effective manner,” says Ditodi.
By working together, TIP One and StokFella believe that the the B-BBEE Share Scheme Stokvel Club can play a meaningful role in changing the ownership structures in the economy and create long-term wealth for stokvel members.