The 27four Lobolo Saver allows individuals and their families to save towards lobolo in a low risk fund and earn competitive returns. Save from as little as R250 per month and get immediate access to your money when that special moment arrives.
Here’s what you’ll need to get started:

South African ID

Proof of banking details

Proof of residence

In the case of a minor, a birth certificate

With the 27four Lobolo Saver your money is invested in the 27four Money Market Fund which is a cautious, local money market portfolio that focuses on capital preservation through investment in a diversified blend of money market investment managers. The fund is designed to outperform the Short Term Fixed Interest Index (STeFI).

 

The investment is a unit trust.

The monthly minimum you can invest is R250.00 or a R5 000.00 lump sum.

People save for lobolo because the price of lobolo is often too high and out of their regular budget. Some are charged a price that is low enough to fit into their monthly budgets, but often means using savings meant for other important life goals. Most people agree that debt is an inacceptable way of paying lobolo, and most people avoid taking out loans or other credit for lobolo. Unfortunately, it should be noted that many couples do fall into debt after the lobolo negotiations or the wedding. The high price of lobolo is often a deterrent of getting married.

Saving for lobolo is tricky because there is no fixed price and is difficult to predict. The price is dependent on the negotiations between various parties, often the elders, on the day of the ceremony. People tend to discuss the price with their partners beforehand to have an estimated price. The estimate then guides the savings plan and usually includes a surplus in case the price goes up on the day.

 

According to a survey of 51 respondents conducted by Mail & Guardian on social media, the prices of lobolo are as follows:

  • Smallest amount paid- R10 000
  • Largest amount paid- R100 000
  • Average- R61 540

 

The South African Wedding Website conducted a survey of 1809 respondents who gave the following price ranges:

  • 62% said R10 000 is a reasonable amount
  • 21% said R10 000 – R25 000
  • 11% said R25 000 – R50 000
  • 8% said > R50 000

A financial planning consultant recommends the following four ways: tax-free savings account, unit trust, money market account or a stokvel. Financial journalist Maya Fisher French (MayaMoney) reckons that people should not take any risk on lobolo money. She recommends savings plans with less costs.

 

Participants were interviewed (with consent) about how they save for lobolo. These participants include people who have already gone through the lobolo negotiations, those who are in the processes and those who are planning for the next year or two. One participant said they would have a very low risk appetite on lobolo, and he would rather put the money in a money market account.

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