In 2004 the separatist Afrikaner enclave of Orania in the Northern Cape launched its own monetary unit, the ora, with just more than R1-million worth made available in the first iteration.
The ora functions much the same as gift vouchers. It can be traded for goods where specifically accepted — in this case by retailers and the local bank of Orania.
The idea of using some form of community monetary unit to boost local spending is an old one, but is not commonly used, at least not in South Africa.
In Orania the experimenters are wondering why that is the case, because in their experience it is hugely successful.
“What we get is a substantial amount of money in the bank, at zero cost, on which we can earn interest,” says Frans de Klerk, a community leader. “That interest we can use for community development.”
The community gets back a little more than just the interest. Oras have an expiration date two years from the date of issue. While they are active they are fully backed by cash kept in a bank account, but any not cashed in before expiration are null and void. Because the notes are a collectable item, with some collectors spending in excess of R10 000 for a complete set, the community has raised money for a variety of projects in this way.
Du Toit says adoption was slow, initially, but now local retailers do around half their business in oras.
Orania’s status as a proto-homeland for Afrikaners makes for a particular focus on self-sufficiency and the ora is a function of that focus. But it also serves as an efficient local economic development mechanism.
“The more often we can turn money around inside our community, the longer we keep it in circulation here, the better for all of us,” says Du Toit.