Turning Stockvel Savings Into Sustainable Wealth: Empowering Communities Through Collective Financial Growth in Zimbabwe

Abstract

This study investigated the factors influencing the transformation of Stockvel savings into sustainable community wealth in Zimbabwe, focusing on financial literacy, governance, social capital, and access to investment instruments. Using a mixed-methods design, data were collected from 200 Stockvel members through structured questionnaires and from 30 leaders and experts via semi-structured interviews and focus group discussions. Quantitative analysis revealed that financial literacy had the strongest positive effect on wealth creation, followed by governance practices, social capital, and access to financial instruments. Qualitative findings highlighted the critical role of trust, transparent leadership, peer monitoring, and digital finance platforms in facilitating collective financial growth. Despite high social cohesion, limited access to formal investment channels constrained long-term wealth generation. The study concludes that Stockvels can evolve from short-term savings groups into investment-oriented entities if targeted financial education, effective governance, enhanced social capital, and digital financial integration are prioritized. These insights provide practical guidance for policymakers, community leaders, and financial institutions seeking to empower marginalized communities.