One of the more frequently utilized and popular informal sector financial institutions is the Rotating Savings and Credit Association (ROSCA). Despite the popularity of the institution, it has not been subjected to rigorous analysis within the field of economics. / ROSCAs allow members to pool savings, and get access to credit without collateral. ROSCAs encourage members to save, and they also increase interaction between members. The main issues that ROSCAs raise are: how is credit allocated, what are the welfare implications of the various allocation schemes, and how does the ROSCA address moral hazard and adverse selection issues? And finally, how does the ROSCA encourage savings even amongst low income groups? These questions are addressed in detail in the thesis. / ROSCA members are strictly better off compared to saving under autarky, and under some reasonable assumptions, even better off compared to saving through a bank. Random allocation of the pot is Pareto optimal when members are homogeneous, but the result does not hold for heterogeneous members. / Bidding ROSCAs are quite complicated since a 'jointly owned' asset is auctioned, and the auction is repeated over many periods. This auction requires explicit modeling of the auction environment, and the information structure of the individual members. We study different auctions, bidding strategies and information environments, and provide equilibria under specific conditions. The standard auction results are shown not to hold under certain conditions. / ROSCAs face moral hazard and adverse selection issues like any other financial institution. But, given that the institution is embedded in a community and social context, ROSCA members deal with the problem utilizing community networks, and the threat of ostracization. We study the selection and monitoring process, and then characterize an equilibrium under which a ROSCA can deter default successfully, and sustain itself over time. / Empirical literature on ROSCAs also points out that members view ROSCAs as 'commitment mechanisms' that facilitate saving. This observation sits uneasily with the neoclassical assumption of a utility maximizing agent. We study various possible explanations of the phenomena, and show how a ROSCA can act as such a mechanism.

This thesis consists of two essays. Each essay addresses a research problem involving some aspects of uncertainty and financial economics. Essay 1 deals with the general question of whether classical results in risk aversion and portfolio choice based on expected utility hypothesis are robust with respect to recent works in nonlinear utility theories generalizing expected utility. We investigate the implications of an axiomatic generalization called weighted utility theory along with the weaker, but unaxiomatized linear Gateaux utility. We establish the equivalence among three definitions of individual global risk aversion, i.e., in terms of conditional certainty equivalent, mean preserving spread, and conditional risky-asset demand, without any differentiability assumptions about the preference functional. The only requirement is that the preference ordering be complete, transitive, consistent with first-degree stochastic dominance, and continuous in distribution. The equivalence between the first two definitions is also extended to a comparative context. We also identify the necessary and sufficient condition for the single risky asset to be a normal good to a weighted utility maximizer with concave lottery-specific utility functions. Unlike its expected utility counterpart, which depends only on the agent's initial wealth and preferences, this condition also depends on the characteristics of the risky asset. The second essay examines the role of a sequential competitive bidding process in the endogenous determination of interest rates and the corresponding allocation of loans and savings in a widely observed class of informal financial markets called the 'rotating credit association'. Optimal bidding strategies are obtained for individual agents with concave and time-additive utility functions. After deriving some comparative statics and efficiency implications of the individual optimal bidding strategy, we impose further restrictions, including risk neutrality, to obtain a tractable form of a Nash equilibrium bidding strategy. This yields, for each agent, an ex post borrowing, as well as lending, interest rate depending on the history of the realized winning bids, including the one for the period in which he won the auction. Weighted by the Nash equilibrium-induced probability of winning in each period, ex ante borrowing and lending interest rates result. / Business, Sauder School of / Graduate

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Thesis (Ph. D.)--University of Wisconsin--Madison, 1995. / eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references (leaves 392-414).

Saving clubs or stokvels have been around in many parts of the World, under different names, for many years and they have been instrumental in teaching people how to save. This research sets to investigate the possible use of stokvels as vehicles, channels or conduits for wealth accumulation among migrant population living in the inner city of Johannesburg. Participants’ contributions and the extent this translates into wealth accumulation among members were critically examined. Furthermore, the study explored whether gender plays any role in terms of stokvels membership and the reasons thereof. The hypothesis of this research was that incomes from stokvels contribute to wealth accumulation of migrants in the inner city of Johannesburg. This study used both quantitative and qualitative research methods to address the research questions and gather relevant data. The use of a mixed approach was adopted as it allows a deeper exploration of the different research objectives and questions of the study. Thematic content analysis was used to analyse the data. The findings of this study have revealed that there is a positive relationship between membership to stokvels and wealth accumulation. Moreover, trust and social capital were found to be pivotal in ensuring success of these groups in terms of who should be accepted into the group. However, many other factors, such as the level of education, the length of stay in South Africa and the marital status of participants could have an impact on wealth status of participants.

The study investigated the informal savings approach as an income-generating and poverty alleviation tool for women. The focus of the study is specifically in the Nelson Mandela Bay Municipality. The purpose of the study was to explore the reasons behind the involvement of women, in particular, to the use of informal savings as a tool for income generation and poverty alleviation. South Africa is characterised by inequitable growth and development, a high degree of poverty, increasing demands and limited resources. It is because of this backdrop that many women in poor communities, both rural and urban, devised brilliant plans to overcome this setback. Women, particularly African women, have for a long time been side-lined in economic decision making activities, both in their homes and elsewhere. For the purposes of this study, a mixed method research approach was employed, meaning that the study will follow both the qualitative and quantitative approaches. The respondents are a mixture of both literate and illiterate persons, and because of that, the researcher had to use both English and the home language of the respondents to explain the contents of the questionnaires and obtain the relevant information. The study identified the reasons that stokvels, which were believed to be popular in the past, and still are, because Black people in South Africa did not have access to formal financial institutions, remain popular long after the demise of apartheid. It is in the interest of the citizens of Nelson Mandela Bay Municipality to archive the financial activities of its inhabitants as this valuable information will be needed by future generations. This can be done by creating a website or adding a link to the existing ones where the information is readily available for the users. For future research purposes, stokvels in various parts of the Municipality and South Africa as a whole need to be studied in order to identify and compare to the available literature the general success factors.

This research established the determinants of the investment choices between the RSA Government Retail Bonds and the stokvel by salaried individuals. The research carried out a comparative analysis between the two investment instruments. The main data was drawn from FinMark for the period 2011 to 2015. The research used a combination of data tables and graphs to analyse frequency (distribution) of use in each of the investment choices. The research used Pearson’s Chi square and Fishers’ t-test to determine the distribution, independence and Cramer’s V coefficient was applied to establish the correlation between the investment choices and the demographic under review. The outcome of the research indicated that more than risk or return inherent in the investment instruments under review, social, psychological and cultural disposition towards these investment instruments played a significant part in influencing the investment choices under review. Furthermore, lower educated individuals at low salary levels had the highest usage in stokvel and the highly educated at the higher level of education opted to invest in the RSA Government Retail Bonds. There was a very low usage in both the investment instruments by the ‘no formal education’ and primary education levels. Pearson’s Chi square and Fishers’ exact tests indicated that, race, education, location and salary levels can be used to explain the differences in investment choices between the RSA Government Retail Bonds and stokvel. According to these tests, age was statistically insignificant to explain the effects of the demographics under review on making investment choices. The results indicate that racial, educational, salary and location differences need to be properly factored into the policy development in so far as investment and savings are concerned. / Finance, Risk Management and Banking / M. Com. (Business Management)

Thesis (MTech (Business Administration (Entrepreneurship)))--Cape Peninsula University of Technology, 2017. / Entrepreneurial activities are very evident within the Cape Metropole as the proliferation of small, medium and micro-sized enterprises (SMMEs) will attest. The most recent literature confirms the preponderance of immigrants in these economic activities. This phenomenon is unfolding against the backdrop of the contingent of challenges which they face which are not limited to discrimination, limited access to finance from formal financial institutions, inadequate skills, and language barriers. The limited access which they have to obtaining finance from formal financial institutions constitutes one of the most significant obstacles for many immigrant entrepreneurs. There is evidence to suggest that in response to this state of affairs, immigrants resort to unconventional means to obtain finance for their entrepreneurial activities. It has been found that, immigrants form self-help financial associations which are known as stokvels in South Africa as a means of obtaining the finances which are needed for the start-ups and even for the growth of their businesses. In fact, it could be asserted that the inability of immigrant entrepreneurs to obtain loans from commercial banks and other related financial institutions has resulted directly in the creation of immigrant-run informal financial institutions such as stokvels. Consequently, the main objective of this study was to assess the role which stokvels which are known in Cameroon as “njangis” or “tontines”, play in the start-ups and growth of businesses which are owned by Cameroonian immigrants in the Cape Metropole. Both quantitative and qualitative approaches and research methods were used to conduct this study. The quantitative and qualitative data was collected through the administration of a questionnaire and the conducting of face-to face interviews respectively, owing to the nature of the target population. The data which was collected from the respondents who completed the questionnaires was captured, categorised and analysed in relation to the research questions through the use of SPSS statistical software and the findings were presented in the form of frequency tables and pie charts. The study ascertained that “njangis” play a very important role in the businesses of Cameroonian immigrants and in their daily lives as they are not only a source of capital for the start-ups and expansion of the businesses of their members, but they also provide a means of saving money, as most of them do not have access to bank accounts. According to some of the respondents, some of the “njangis” even serve as forums for discussing business ideas. Like most other organisations, stokvels have their own unique challenges, which will be discussed comprehensively in Chapter Four, particularly with respect to the methods which are employed to overcome them. It is the considered opinion of the researcher that it is in the domain of entrepreneurship in particular that South African citizens could learn a great deal from immigrants from other African countries about the successful starting and running of small, medium and micro sized businesses as recent literature has demonstrated quite conclusively the significant contribution which their entrepreneurial enterprises make to the development of the South African economy, in terms of both earning revenue for the South African government and providing employment to South African citizens.

Text in English with abstracts in English, isiZulu, Northern Sotho and Tshivenda / This study explores the phenomenon of stokvels − membership-based savings schemes providing for the social and financial wellbeing of their members as well as entertainment (Lukhele, 1990). The purpose of the study is to identify the existence of a different kind of economy that is not informed by the capitalist logic. The study aims to examine the values that underpin stokvels and to locate them within a particular socio-cultural and historical context. This is a qualitative research study and my research approach included fieldwork, participant observation, in-depth interviews and the procedure of genealogy. The study, employing these methods, has enabled me to draw a connection between the Khumalo clan - the generation of Mzilikazi Khumalo who was a friend to King Shaka and is argued to have played a pivotal role in building what is known as the Zulu nation today – and my uncles. In the six months I spent at Esihlengeni, a small village in Vryheid, KwaZulu-Natal, I interviewed 27 people, attended two funerals, one family ritual and conducted two focus group discussions with stokvel women. I found that stokvels are not centred on an African epistemic framework as anticipated in the problem statement but are still within the capitalist logic of profit and thus do not draw from the community’s traditional values. While stokvels are informed by the dominant capitalist logic, the community of Esihlengeni still draws from their cosmological worldview that provides them with a different understanding of the economy that is centred on cattle – the means that allow them to perform rituals that guarantee protection and continuity of life - to make sense of their world. Their insistence on the importance of cattle in this community is their cry to be allowed to exist and be recognised as humans that can think for themselves. I conclude by arguing that to understand this community correctly, we need to take the ontological difference seriously that we cannot possibly have only one way of existing. The community of Esihlengeni thus provides us with the economic theory that is centred on life in its totality – that takes both the physical and metaphysical into consideration to ensure the continuity of life. As such, the community of Esihlengeni should be regarded as a gift to be appreciated. / Lolucwaningo luhlaziya isimo sezitokofela – uhlelo lokonga olunika abayingxenye yalo ukweseka kwezomphakathi, ezomnotho nezokuzijabulisa (Lukhele 1990). Ingqikimba yokwenza lolucwaningo ukubonisa ubukhona bomnnotho ohlukile, ongatshelwa wumnotho ogxile kwinzuzo, phecelezi ikhephithalizimu. Injongo yalolucwaningo ukuhlolisisa izimiso ezisekela amastokofela nokuwabeka endaweni ethize yezinhlalo zomphakathi-namasiko kanye nomlando. Lolucwaningo lugxile kwizizathu zokuba yingxenye kuloluhlelo, indlela yokuthola imininingwane ixhumanisa ukuchitha isikhathi nabantu, ukubamba ingxenye kwizinto abazenzayo, ukubabuza imibuzo ejulile, nokudweba imvelaphi yabo. Kulolucwaningo, ngokusebenzisa lezizindlela zokucwaninga, ngakwazi ukuxhumanisa isizwe sakwaKhumalo – inzalo yenkosi uMzilikazi Khumalo owaye umngani wenkosi uShaka futhi kuthiwa wabamba iqhaza eliqavile ekwakheni isizwe esaziwa njengamaZulu namhlanje – nomalume bami. Ezinyangeni eziyisithupha engazicitha eSihlengeni - isigodi esiseFilidili KwaZulu-Natali, ngaba nendabangxoxiswano nabantu amangamashumi amabili nesikhombisa, ngaya emingcwabeni emibili nasembenzini owodwa womndeni, ngase ngikhulumisana namaqoqo amabili omama besitokofela. Ngathola ukuthi izitokofela azizinzile kwinqubomigomo yesintu njengoba ngangisola esitatimendeni socwaningo, kodwa angaphakathi komnotho ogxile kwinzuzo, ikhephithalizimi, ngakhoke awasebenzisi imikhuba yesintu yalomphakathi. Noma amastokofela egxile kumnotho oqgamile ogxile kwinzuzo, lomphakathi waseSihlengeni usasebenzisa indlela yawo yokuphila eveza inqubomgomo ehlukile yomnotho ogxile ezinkomeni - eziyisisekelo sokwenza amasiko aqinekisa ukuvikeleka nenqubekela phambili yempilo – ukuqondisisa imvelo. Ukuphikelela kokubaluleka kwezinkomo kulomphakathi isikhalo sokuthi uvumeleke ukuba aphile futhi ubonwe njengabantu abakwaziyo ukuzicabangela. Ngiphetha ngokuthi ukuqondisisa lomphakathi kahle, kumele sithathe ukuhlukana kwezizwe okuyimvelo yempilo ngokuzimisela, ukuthi kungenzeke kube nendlela eyodwa yokuphila. Umphakathi waseSihlengeni ngakhoke usinika inqubomugomo yomnotho egxile empilweni ngokuphelela kwayo – uthatha okubonakalayo nokungabonakali ukuqiniseka kokuqhubekela phambili kwempilo. Kanjaloke, umphakathi waseSihlengeni kumele ubonakale njengesipho okumelwe sibungazwe. / Nyakišišo ye e bolela ka ditokofele – dikema tša polokelo tša go thewa godimo ga boleloko go dira gore maloko a tšona a be le boiketlo go tša leago, matlotlo le boithabišo (Lukhele, 1990). Morero wa nyakišišo ye ke go hlaola go ba gona ga mehuta ya go fapana ya ekonomi yeo e sa huetšwego ke lotšiki ya bokepitale. Maikemišetšo a nyakišišo ke go lekola melawana yeo e thekgago ditokofele le go di bea ka gare ga maemo a itšeng a histori, a leago le a setšo. Ye ke nyakišišo ya khwalithethifi gomme sebopego sa nyakišišo ya ka se akaretša tlhohlomišo, temošo ya bakgathatema, dipoledišano tša go tsenelela le tshepedišo ya tšinealotši. Nyakišišo, ya go šomiša mekgwa ye, e nkgontšhitše go laetša kamano gare ga lešika la ga Khumalo ‒ moloko wa Mzilikazi Khumalo yoo a bego e le mogwera wa Kgošikgolo Shaka gape o dumelwa go ba a bapetše karolo ye bohlokwa kagong ya seo lehono se tsebjago bjalo ka setšhaba sa Mazulu ‒ le bomalome ba ka. Mo dikgweding tše tshela tše ke di feditšego Esihlengeni, motse wo monyane go la Vryheid, KwaZulu-Natal, ke boledišane le batho ba 27, ke tsenetše ditirelo tše pedi tša poloko, moetlo o tee wa lapa le go swara dipoledišano tše pedi tša go lebantšha sehlopha gotee le basadi ba setokofele. Ke hweditše gore ditokofele ga di latele foreimiweke ya epistemiki ya Afrika bjalo ka ge go letetšwe ka gare ga tlhalošo ya taba eupša di sa le ka gare ga lotšiki ya bokepitale ya poelo gomme ka go realo ga di latele ditumelo tša setšo tša setšhaba. Mola ditokofele di latela lotšiki ya bokepitale ye e bušago, setšhaba sa Esihlengeni se sa ntše se latela pono ya sona ya kosmolotši ya lefase yeo e ba fago kwešišo ye e fapanego ya ekonomi ya go thewa godimo ga dikgomo – mokgwa wo o ba dumelelago go phetha moetlo wa go tiišetša tšhireletšo le tšwelopele ya bophelo – go kwešiša lefase la bona. Phegelelo ya bona go bohlokwa bja dikgomo ka setšhabeng se ke sello sa bona sa gore ba dumelelwe go ba gona le go amogelwa bjalo ka batho bao ba kago inaganela. Ke fetša ka gore go kwešiša setšhaba se e le ka nnete, re nyaka go tšea kgopolo ya ontolotši bjalo ka ye bohlokwa ya gore re ka se kgonego ba fela le tsela e tee ya go phela. Setšhaba sa Esihlengeni ka go realo se re fa teori ya ekonomi yeo e theilwego godimo ga bophelo ka moka ga bjona – seo se akaretša bobedi fisikale le metafisikale go kgonthišiša tšwelopele ya bophelo. Bjalo, setšhaba sa Esihlengeni se swanela go tšewa bjalo ka mpho ye e amogelwago. / Ngudo iyi i tandula tshibveleli tsha zwiṱokofela − vhuraḓo ho ḓisendekaho nga zwikimu zwa u vhulunga u itela u dzudzanyea nga tshitshavha na lwa masheleni kha miraḓo khathihi na vhuḓimvumvusi (Lukhele, 1990). Ndivho ya ngudo ndi u topola u vha hone ha tshaka dzo fhambanaho dza ikonomi dzine dza sa ḓivhadzwe nga thevhekano ya pfuma. Ngudo yo pika u ṱola zwithu zwa ndeme zwo tikaho zwiṱokofela na u u wana vhukati hazwo nyimele ya matshilisano na mvelelo kathihi na ḓivhazwakale. Hei ndi ngudo ya ṱhoḓisiso ya ndeme na nyolo ya ṱhoḓisiso yanga yo katela mushumo wa nnḓa, u sedza vhadzheneli, inthaviwu dzo dzhenelelaho na kuitele kwa vhutumbukwa. Ngudo dzi shumisaho ngona idzi, dzo nkonisa u vhona vhuṱumani vhukati ha lushaka lwa ha Khumalo ‒ murafho wa ha Mzilikazi Khumalo we wa vha u khonani dza Khosi Shaka nahone hu pfi wo shela mulenzhe zwihulwane kha u fhaṱa zwi vhidzwaho uri lushaka lwa ha Zulu ṋamusi ‒ na vhomalume anga. Kha miṅwedzi ya rathi ye nda I fhedza ngei Esihlengeni, kuḓana ku re kha ḽa Vryheid, KwaZulu-Natal, ndo inthaviwa vhathu vha 27, nda dzhenela mbulungo mbili, nyitelatherelo nthihi ya muṱa na tshimbidza nyambedzano dza zwigwada zwo sedzaho mbili na vhafumakadzi vha zwiṱokofela. Ndo wana uri zwiṱokofela a zwo ngo ḓisendeka nga muhanga wa nḓivho ya Afrika sa zwe zwa lavhelelwa kha tshitatamende tsha thaidzo fhedzi hu kha ḓi vha nga ngomu ha thevhekano ya pfuma ya u bindula zwenezwo a zwo bvi kha zwithu zwa ndeme zwa sialala zwa tshitshavha. Musi zwiṱokofela zwi tshi ḓivhadzwa nga thevhekano thakhulwa ya pfuma, tshitshavha tsha Esihlengeni tshi kha ḓi dzhia u bva kha kuvhonele kwa mvelo kwa ḽifhasi ku vha ṋekedzaho kupfesesele kwo fhambanaho lwa ikonomi yo ḓisendekaho nga kholomo – nḓila ine ya vha tendela u shuma nyitelatherelo dzavho zwi themendelaho tsireledzo na u bvelaphanḓa ha vhutshilo – u itela u pfesesa ḽifhasi ḽavho. U omelela kha ndeme ya kholomo kha tshitshavha itshi sa tshililo tshavho tsha u tendelwa u vha hone na u dzhielwa nṱha sa vhathu vhane vha kona u ḓihumbulela. Ndi pendela nga u amba uri u itela u pfesesa tshoṱhe tshitshavha itshi ri tea u dzhia kuvhonele kwa zwa mvumbo ro khwaṱhisa uri ri sa tou vha na nḓila nthihi fhedzi ya u vha hone. Tshitshavha tsha Esihlengeni zwenezwo tshi ri fha thyori ya ikonomi yo ḓisendekaho nga vhutshilo ho fhelelaho – hezwo zwi dzhiela nṱha zwa muvhili na zwa khumbulelwa u khwaṱhisedza u bvelaphanḓa ha vhutshilo. Zwenezwo, tshitshavha tsha Esihlengeni tshi tea u dzhiiwa sa tshifhiwa tsho tewaho nga dzindivhuwo. / Anthropology and Archaeology / D. Phil. (Anthropology)