<P> Stokvels are invitation only clubs of twelve or more people serving as rotating credit unions or saving scheme in South Africa where members contribute fixed sums of money to a central fund on a weekly, fortnightly or monthly basis . The name "stokvel" originated from the term "stock fairs", as the rotating cattle auctions of English settlers in the Eastern Cape during the early 19th century were known . </P> <P> Stokvels generally have a constitution which dictates the size of the contributions, when the accumulated money is to be paid out and the roles and responsibilities of the members . Each month a different member receives the money in the fund, which was collected during that period . Defaults on contribution are quite rare as other members will know if you haven't paid your contribution, and also because the regular meetings are a reminder of what you will gain when it is your turn . Depending on the type of stokvels, the members can use the collected fund for their own use, for payment or investment purposes . </P> <P> It is estimated that one in every two black adult South Africans is a member of at least one of 800 000 stokvels . Black adult South Africans invest approximately R50 billion in stokvels a year . </P> <Dl> <Dt> Contribution Stokvels </Dt> <Dd> Traditional savings scheme in which members contribute a fixed amount of money to a common pool weekly, fortnightly or monthly . Members would receive the lump sum on a rotational basis, and they are free to use the money for any purpose . </Dd> </Dl>

How many stokvels are there in south africa