In the same year, the Mzansi account was launched to attract more people to the territory of the banks. This study draws on the experiences of women who work in the informal economy and use the Mzansi account.
CHAPTER ONE: INTRODUCTION
Savings from the Mzansi account impact survival outcomes by allowing you to invest in funeral insurance through debit orders. In terms of women's livelihoods and businesses, savings from the Mzansi account are used to purchase supplies.
CHAPTER TWO: INFORMALITY, SAVINGS AND LIVELIHOODS
- The Informal Economy
- Historical Roots
- Importance of the Informal Economy
- Delineating the Informal Economy
- Differing Views on the Role of the Informal Economy
- Women and the Informal Economy
- Microfinance and the Informal Economy
- Providing Proper Banking Facilities to Save
- Formal versus Informal Saving Mechanisms
- Transaction Accounts and Financial Exclusion
- The Livelihoods Approach
- Conclusion
34; characteristics of the production units (enterprises) in which the activities take place", they also include the "characteristics of the persons involved or of their jobs (labor approach)" (Hussmanns, 2004: 3). It is based on the belief that savings is a plays an important role in the livelihood strategies of the poor.
CHAPTER THREE: CONTEXT
- The Informal Economy in South Africa
- Government Initiatives
- The Financial Behaviour of South Africans 1. Formal Mechanisms
- Transaction Accounts
- Informal Mechanisms
- Financial Sector Charter
- Private Sector Initiative
- Conclusion
However, the gender gap in the informal economy was much smaller than in the formal economy, where 61.9% of the workforce was male and 38.1% female (Devey et al. These figures show that the percentage of women working in the informal economy, greater than the formal economy and the gender gap in the informal economy is smaller compared to the formal economy, which emphasizes that informal financial mechanisms play an important role in poor households.
As more adults participating in stokvel are in wealthier LSMs, they are more likely to have a bank account. In South Africa, a higher percentage of Mzansi account holders are in the informal economy compared to those with other types of bank accounts. Sixteen percent of those with a Mzansi account are in the informal economy and 9.2%.
SEWU's aim was to improve the position of self-employed women in the informal economy in South Africa. Twenty-four percent of the South African workforce is in the informal economy.
CHAPTER FOUR: RESEARCH METHODOLOGY
The questionnaire generally probed demographic information, details related to women's work, their savings habits, credit practices and questions related to banking and their bank accounts. Concretely, with regard to saving, the goal was to find out whether women save money, in which institution this happens and what the savings are used for. Questions about credit were included to find out what women borrow money for and from whom.
Banking questions were designed to learn more about the bank accounts used by the women and their usage patterns. But interviews were conducted at the women's workplaces to prevent them from losing income. It also gave the interviewer the opportunity to see the women-owned businesses and gain a better understanding of how they operate.
The interviews were recorded with the women's permission and the answers were simultaneously written down by the interviewer. A bank charges table has been created to compare the costs of the Mzansi account at each bank.
CHAPTER FIVE: SAVINGS, CREDIT AND BANKING PRACTICES
Demographics of Interviewees
The women in Berea Station have been involved in their current work activities for a longer period compared to the rest of the group. The women in semi-rural areas started their work recently as they have been involved in it for two to seven years. There does not seem to be a transfer of skills from the women's formal jobs to their informal work activities, as the women now perform completely different jobs.
This correlation is evident in this sample group where all women earn less than R2 501 per month except one, Mrs. In general, women working in urban areas or Berea Station earn more than those in semi-rural areas. Interviewees in their forties make up the majority of women in the top earning category of earning RI000 or more in a busy month.
A higher level of education does not seem to have an impact on whether women earn more or not. Instead, women are using the assets they possess such as land and the ability to cultivate and keep animals on it or their sewing skills.
Credit Practices
This question highlights what options women have when money is urgently needed for an emergency and if savings play a role. For another two women, the first port of call would be the money kept in their house. The other said "Most of the time I keep some money at home because I'm afraid to take a loan from the bank, but if it's a big amount I need, I have to borrow it from the mashonisa" ( Interview with Ms. Ndlovu.
This preference to use credit is reinforced when interviewees are asked, "Do you prefer to borrow money or use your savings?" Some of the reasons given for this preference are that if “I take my savings from the bank, it is difficult to go back and replace that money, but if I borrow money from someone, it is easier to get that money to pay back" (Interview with Mrs. Kunene: In the same line of thinking, another woman prefers to borrow "because it forces you to pay it back".
The lack of sufficient funds in the bank to draw on and the inability to save due to lack of cash leads to borrowing. But one said that if she didn't have enough time to access her savings, she would borrow the money instead.
Savings Habits
Money saved in the can can be used in times when you do not have transportation money but you are saving in the can. On the other hand, another woman sees “no advantage in saving money in the closet because this money in the closet is easily used.” She prefers 'the bank even though there are high costs because we don't use the money in the bank' unnecessarily" (Interview with Mrs. Kunene.
But if we consider that some women deposit money every day for free by this watchman, using money watchman is much cheaper than using a bank. The two women are also buying Shoprite stamps, which can be redeemed for in-store purchases in the future. A common reason for this answer is that money is easily accessible in the house compared to traveling to the bank to withdraw money.
So it is easily consumed in the house, but not if it was stored in a bank. Even if the money is kept in the bank, they are not tempted to use it, while at home the temptation is great because many people would like to spend it.
Bank Accounts
- Mzansi Account Holders
- General Usage
- Product Design
- Product Design
- Non Bank Account Holder
Mkhize in Mzinyathi to open the account because she said the Mzansi account was cheaper than other bank accounts. Most women use the Mzansi account to save money, while half of women report this. The design of the Mzansi account is examined by highlighting the benefits and limitations of the account.
On the Mzansi account, the first cash deposit per month at an ATM or ATM is free and thereafter it is R5.20. Debit orders on the Mzansi account are approximately half the price of the Transactor account. For a cash withdrawal at a Nedbank ATM, the Mzansi account is cheaper than the Transactor account by RO.55.
The biggest change or introduction to the account that Mzansi account holders would like is a bank passbook. Unlike the Mzansi account holders, not all of these women have transaction-only savings accounts.
No Riddle of Coexistence
By enabling investment in other financial products, especially funeral insurance, the Mzansi account improves livelihood outcomes by reducing the vulnerability that the women's families would face in the future. The savings from both facilities are used to enable the daily operation of the women's businesses through the purchase of shares. This may not improve livelihood outcomes by generating more income, but it maintains the stability of women's businesses.
Informal saving mechanisms play an important role in women's saving habits, as evidenced by their use of several informal mechanisms such as stokvels, a tin or cupboard, a money guard, buying stamps and keeping money in a bag. Mzansi account holders mostly use their account to save money, with half of women indicating this. The majority of women borrow money, and loans are taken out mainly for work purposes.
In emergency situations, when money is needed quickly, most women borrow money. Also, in general, most women prefer to borrow money rather than spend their savings.
CHAPTER SIX: CONCLUSION AND STRATEGIES FOR IMPROVEMENT
Strategies for Improvement
- Lack of Bank Book
- Fifteen Thousand Rand Limit on Account
- Distance to Bank
The final aim of this study was to recommend how Mzansi Account services could be improved to maximize support to informal workers. The desire for a bank book among Mzansi account users seems to stem from the fact that they cannot monitor the transaction activities in their accounts. Not having to provide proof of residence is stated by Mzansi account holders as an advantage of the account.
Furthermore, when we compare the Mzansi account with a checking account offered by one of the big four banks, transaction costs on the Mzansi account are not necessarily cheaper. Therefore providing access to credit for low income earners should be an objective of the Mzansi account as it would make the account more customer centric. This would be for the upper end of the micro enterprise market as seen in the Cooperative Bank of Kenya.
This would require a major commitment from the banks to serve the poor. There is a need for a study on what it will take to encourage more unbanked people to open Mzansi accounts.
FNB Savings
Sews and sells church uniforms SpazaShop Owner Sells towels, shoes, pearls and hats .Sews~d .sells Church. Cash deposit at ATM or bank branch is free p/m after 05 RI to 00 RI or part thereof 1. ATM or bank.
