Government bonds will help poor South Africans, church agency says

Published: 2004-06-11

CAPE TOWN, South Africa (CNS) -- New government bonds will greatly benefit poor South Africans, the Southern African Catholic Bishops' Conference's justice and peace department said. In the past, investors needed at least one million rands (about US$143,000) to invest in government bonds, but the investment minimum for the retail bond issued by the South African treasury in late May was set at 1,000 rands (US$143). Issuing retail bonds to ordinary South Africans is "a sound poverty reduction strategy," the justice and peace department said in a statement from Pretoria. "With a guaranteed return of 10 percent over five years, communities that are familiar with 'stokvels' would do well to collectively invest their money in these government bonds," the statement said. A stokvel is a savings club where a group of friends contribute money each month and take turns to take home the month's collection.

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