- Mzwakazi Grocery Scheme issued funeral policies without a licensed insurer for over a year, collecting nearly R1 million in premiums.
- 205 claims were paid out to local families, demonstrating the scheme’s commitment despite legal non-compliance.
- The FSCA has accepted an enforceable undertaking, prioritising future compliance and registration over immediate penalties.
In the heart of Bekkersdal, a township where formal financial services rarely reach, a story has unfolded that speaks to both the strength and vulnerability of the community.
For over a year, the Mzwakazi Grocery Scheme, run by Mzwakazi General Dealers CC and its director, Morongoe Emily Sititi, quietly offered funeral cover to hundreds of residents.
In a place where the cost of a funeral can be overwhelming, neighbours pooled their resources, paying monthly premiums and finding comfort in a system built on trust.
Between November 2023 and January 2025, the scheme advised 450 clients, collected nearly R1 million in premiums, and paid out 205 claims totalling R856 200. For many, Mzwakazi was not just a financial service; it was a local safety net, a promise that, in times of grief, the community would stand together.
However, beneath this well-intentioned system lay a serious flaw. Mzwakazi operated without a licensed insurer, contravening South Africa’s financial regulations. When the Financial Sector Conduct Authority (FSCA) launched its investigation in November 2024, it found that the scheme was issuing funeral policies and operating as a financial services provider without the proper authorisation.
Accountability and a path forward
Sititi took responsibility for the oversight, admitting to the breaches and agreeing to a formal undertaking with the FSCA, signed in September 2025. Instead of levying immediate penalties, the FSCA accepted this enforceable undertaking, recognising both the scheme’s cooperation and the absence of consumer harm.
Mzwakazi and Sititi have now committed to working only with licensed insurers going forward and ensuring all representatives are registered with authorised financial service providers. The FSCA has reserved the right to impose penalties or take further action if the undertaking is not upheld.
The FSCA’s approach was pragmatic, opting to bring Mzwakazi into compliance while acknowledging the essential role such schemes play in communities like Bekkersdal. The decision reflects a delicate balance of upholding the law without undermining informal systems that, although unregulated, often step in where formal institutions do not.
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