Community‐based finance systems and their potential for urban self‐help in a new South Africa

Agents dealing with the improvement of the living conditions of the poor often face difficulties owing to a lack of finance. A possible solution is the use and creation of community‐based finance systems for residential improvement, taking into account that additional finance can be mobilised among the target group. For the creation of such schemes, one can learn much from the organisation, operation and maintenance of financial self‐help groups such as stokvels in the informal sector. In discussing and analysing this information, lessons are drawn and policy options developed. It is of great importance that blueprints should be avoided. Consequently, alternative policy options for guided self‐help are explored.