Octavius is the founder and lead economic development architect at Brillianaire Consulting, a socioeconomic investment management startup firm that provides high impact policy and programme architecture, and shared value impact investments in agriculture, small business and infrastructure through re-engineered models/ frameworks, scalable execution methodologies and partnerships. He is a development finance professional with a broad set of capabilities ranging from project management, impact investment, small enterprise development and management consulting who has developed and managed large scale enterprise development programmes, and social investments projects. He’s a former SAB Economic Development Manager where he was responsible for Socio-Economic Development and Enterprise Development programme with an annual budget of over R90mil; and served as an Enterprise Development Specialist before, reengineering the SAB KickStart programme to a leading SA’s privately run youth entrepreneurship programme. Before joining SAB, he was a management consultant at Accenture with finance performance engineering and programme management expertise in the Utilities sector. Octavius is studying his Post Graduate Diploma in Development Finance with Stellenbosch University. He holds a Fundamental Management Programme certificate from UNISA School of Business Leadership (SBL), and a B. Com Accounting degree from University of Limpopo.
Stokvels as Primary Funders/ Financiers for Small and Micro Enterprises
South Africans in rural areas and townships have long dependent on group savings in the form of stokvels, to finance essential social needs such as burials and family groceries. This paper aims to argue that there exists an opportunity to tap into these groups and unlock the potential they possess to fund small micro medium enterprises (SMMEs), thus positioning themselves as accessible grassroots community-based green funds (CGFs). The introductory section reviews the historical structure and model of the stokvels and their existing objectives as a way to illustrate their robustness and risk appetite. The significance of evaluating the current framework of the stokvels is also demonstrated, with an intention to propose the rebranding of these schemes within the community capital system. Furthermore, the paper investigates in detail, the role of banks as intermediaries and the need to promote redirection of traditional stokvel funds to serve and evolve into modern-day microfinancing platforms. This paper aims to also contribute to the growing body of knowledge around these traditional saving schemes, and illustrate the opportunity held for the industry insofar as unlocking the potential of SMMEs, cooperatives, township and rural enterprises to support South Africa’s national development plan (NDP). As a concluding narration and making recommendations, the paper then discusses ways and means to formalise the inclusion of CGFs in the ecosystem of small enterprises, startups and entrepreneurship as rotating source of finance.