Integrating stokvel investment into local economic development policy: Strengthening rural women-owned SMMEs in South Africa

This study examines the role of stokvel investment in enhancing the sustainability of rural women-owned small, medium, and micro enterprises (SMMEs) within the context of local economic development (LED) in South Africa. Despite the importance of SMMEs in promoting inclusive growth, rural women entrepreneurs continue to face persistent financial exclusion and limited institutional support. A qualitative research design was employed, drawing on semi-structured interviews with rural women entrepreneurs, stokvel leaders, municipal officials, and financial institution representatives in the Raymond Mhlaba Local Municipality. Thematic analysis was used to identify patterns relating to financial access, governance, and structural constraints. The findings show that stokvels function as critical community-based financial and social institutions that enhance enterprise viability through accessible capital, collective governance, and social capital. The study proposes a Municipal Stokvel-LED Integration Framework that positions informal financial systems as strategic partners in inclusive local economic development.

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Publication Details

Journal
Development Southern Africa
Published
2026-10-07
DOI
https://doi.org/10.1080/0376835x.2026.2736093
Primary Topic
Microfinance and Financial Inclusion
Type
article
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article

Integrating stokvel investment into local economic development policy: Strengthening rural women-owned SMMEs in South Africa

Sithenkosi Lungisa, Sifiso Mofokeng, Zanele Nkonyeni
Development Southern Africa
Microfinance and Financial Inclusion
article

Integrating stokvel investment into local economic development policy: Strengthening rural women-owned SMMEs in South Africa

Sithenkosi Lungisa, Sifiso Mofokeng, Zanele Nkonyeni
article en

Abstract

This study examines the role of stokvel investment in enhancing the sustainability of rural women-owned small, medium, and micro enterprises (SMMEs) within the context of local economic development (LED) in South Africa. Despite the importance of SMMEs in promoting inclusive growth, rural women entrepreneurs continue to face persistent financial exclusion and limited institutional support. A qualitative research design was employed, drawing on semi-structured interviews with rural women entrepreneurs, stokvel leaders, municipal officials, and financial institution representatives in the Raymond Mhlaba Local Municipality. Thematic analysis was used to identify patterns relating to financial access, governance, and structural constraints. The findings show that stokvels function as critical community-based financial and social institutions that enhance enterprise viability through accessible capital, collective governance, and social capital. The study proposes a Municipal Stokvel-LED Integration Framework that positions informal financial systems as strategic partners in inclusive local economic development.

Development Southern Africa
University of Fort Hare (ZA)
Openalex Percentile: Top 8%
Microfinance and Financial Inclusion
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Integrating stokvel investment into local economic development policy: Strengthening rural women-owned SMMEs in South Africa — Sithenkosi Lungisa, Sifiso Mofokeng, et al. · Development Southern Africa (2026) | TGRS Research Map | TGRS