The stokvel/kukandirana round

 I was thinking about what i would write about today when i stumbled on a very interesting article online. I was going through my Facebook feed when i read an article about cooperative business initiatives. This kind of business involves being part of a group of people who contribute a certain amount of money, goods or whatever would be needed. These contributions are handed over to one individual every month/week/year depending on the magnitude of the thing being circulated. This kind of business is commonly known as "kukandirana round" or the concept of a stokvel.

My mother tried her hand at it at some point with her friends and they were each required to give a certain amount to a different individual every week. At the onset this worked perfectly for everyone but some individuals who had received their share stopped giving what was required of them and my mother ended up not getting as much money as she thought she would. Clearly those are some of the disadvantages of this kind of initiative but below are some of the advantages.
1) you can buy a car within a year through the combined efforts of committed people.
2)it is a form of investment that ensures that you have money stored up for a rainy day.
3)you can do it with your friends, your neighbor and your church mates.
4)It is relatively easy to be part of a cooperative as some accept as little as $2 per week.
Like i said there are some disadvantages like i highlighted
1) your group members can refuse to give your share of money or goods after they have received theirs
2)it can be slow and tedious especially if you want to buy something big like a car, fridge, furniture etc
3)you need to have a constant supply of money/products especially if you do it on a weekly basis.
The advantages of kukandirana round are relatively higher than the disadvantages of the practice. Do correct some of the disadvantages you should have some form of insurance within the group. Lets say that you are part of a group of 10 and each of you gives $200 per month and you each want to buy furniture, you should make it contractual and each person should submit something as insurance for example phones, laptops, tablets, furniture depending on the seriousness of your projects. Most people make the mistake of making some of these initiatives informal and verbal and thus end up not getting the promised returns. Below is a step by step way of drafting a simply contract between friends and what to consider when drafting the contract.
http://www.printablecontracts.com/
http://www.wikihow.com/Write-a-Legal-Contract
http://bermudasun.bm/Content/FEATURES/The-Good-Life/Article/11-tips-on-how-to-draft-a-simple-contract/60/1035/76057
https://legalvision.com.au/consider-drafting-contract/