In the past few weeks WhatsApp Stokvel/WhatsApp money clubs have taken over in both South Africa and Zimbabwe.
Head of Savana Investment Group Runyararo Mherekumombe has issued a warning against these money clubs. According to Runyararo Mherekumombe, all WhatsApp Clubs are fraud and get rich schemes that will leave many worse off.
SIG group believes more in Stock Markets investments than Ponzi Schemes, ‘there is no real difference between MMM and WhatsApp Stockvel as all rely on a system of recruitment in order for the one at the top to make money’. MMM was a hit in 2016 with many jumping on the train after promises of 30% monthly returns. The scheme which was run by Russian thug Sergey Mavrodi, later collapsed but the damage had already been done.
Ponzi schemes always attract many takers as the promise of huge returns makes the financial illiterate jump on them only to lose thousands in the process. By definition a Ponzi Scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors .
SIG is trying to encourage Africans to be partakers of Stock markets as Runyararo puts it
‘These companies in Zimbabwe are available for next to nothing. But just like when Rhodes arrived in Africa, poor people walk on these companies oblivious of the value: