Ask South Africans what stops them from starting a business, and the first answer is almost always funding. In Evaton, south of Johannesburg, about 1,200 people answered that question differently. They pooled their social relief of distress (SRD) grants and bought a bakery. Within six months they had added a supermarket and a butchery.
How it started
The group is called Isinkwa Sethu, which means “our bread”. It was started by Sibusiso Ntsele, a former financial adviser, in December 2025. Each member contributed one month of their SRD grant, then R350, which has since risen to R370. On its own, R350 is not startup capital. Multiplied by 1,200 people, it became a deposit of about R420,000 on bakery equipment.
The group bought a struggling bakery from its owner and revived it. The property cost over R480,000, and repairs to the equipment, electricity and new solar power cost about R100,000 more. Stokvel contributions covered the first stock, packaging, barcodes and basic systems, so the bakery could start trading quickly.
What it has built
- A community-owned bakery, selling bread at R11 wholesale and R13 over the counter
- A supermarket and a butchery, launched in early May 2026
- About 40 jobs, many of them filled by members who had been unemployed for years
- Dividends for members, on top of the jobs
Members are also asked to buy from their own shops and to promote them. The group’s Sesotho slogan carries the idea: you should support what feeds you.
Why it worked
The Evaton model answers the most common barriers one by one.
Funding. Nobody applied for a loan, so there was no rejection letter and no waiting. The capital came from the community itself.
Knowledge. Ntsele brought financial skill, and the members brought the capital. Each covered the other’s gap.
Risk. The risk was spread across 1,200 people, so no single person carried the whole loss if it failed.
Customers. The members were the first market. A business that already owns its customers starts with demand built in.
This is the stokvel working as what it has always been: informal venture capital, built on pooled trust and monthly discipline. It is not a December savings club.
What this means if you are starting a business
You probably do not have 1,200 members. You may still have the same raw material: people who believe in what you are building and would buy from you. Before you look for funding, ask three questions.
- Who would pay for this today, before it is perfect?
- Who could I build with, so that their strengths cover my gaps?
- What is the smallest version I could start with, and prove?
The Evaton model does not mean funding is not real. It shows that the right structure can lower the cost of entry further than any single founder can on their own.