Closing the Gender-Gaps

We saw the Washington Post dub 2023 the “Year of the Woman”. We see and hear about fierce female powerhouses stepping up to the plate in pop-culture, business and politics. Researchers, from the UK to the US to Japan, have illustrated that in the next 5 to 10 years, most of the wealth, at least in developed nations, will be in the hands of women. Shifting demographics, an ageing population and the relative longevity of females versus males will see women control more than 70% of the wealth of the US’s “Baby Boomers” by 2030. The result is that many industries are putting serious elbow-grease into figuring out “what women want”. From mainstream media to big pharma to the automotive industry, there has been a realization that tapping into the female market, and its market-power, is crucial to ensure continued profitability. 

In South Africa, the focus on women and wealth is not so much driven by demographic shifts. Women in South Africa tend to outlive their male counterparts, but an imminent gender-based wealth-transfer is unlikely – our population is still relatively young after all. To be frank, the focus on women’s wealth in South Africa is not yet nearly as commercially driven as it is elsewhere. Instead, our primary driver for putting women’s wealth in the spotlight is, as it should be, our intention to make meaningful progress toward achieving UNSDG 5 – Gender Equality. In some respects, both our youthful democracy and our youthful population are a bonus in this regard. We don’t need to follow in the sometimes-dodgy footsteps of arguably more developed peers. And we have the democratic principles in place to prevent us from straying down the wayward path of some of our less progressive peers. We can chart our own path to more equitable outcomes when it comes to gender and the distribution of wealth. 

What might some of the milestones on South Africa’s path look like when it comes to the financial health and well-being of South African women? How can we empower women when it comes to financial matters? Education is one of the most powerful tools in promoting equal access and equal opportunities for South African women. Starting in the foundation phases, and the every-day, and finally rippling out to the broader workforce and the opportunity for and ability to participate effectively in a rapidly evolving global economy. 

A focus on education – milestones to work toward.

Alleviating period poverty: 

Our education system, while far from perfect, is not strictly speaking exclusionary. Young girls can, in theory, have the same access to at least basic education as their male counterparts can. Something that we don’t often talk about, however, is “period poverty”. Studies suggest that 30% of young girls in South Africa suffer from period poverty, and up to 7 million girls are missing nearly 25% of their school year – simply because they do not have secure access to basic menstrual products. 

Hearteningly, by available measures, South Africa’s female population has similar access to financial institutions as males do (at the level of the broader population of course, with rates differing in rural areas, as an example). According to the World Bank’s Gender Statistics (last available survey in 2021), 84% of South African women have access to a financial account (slightly higher than male counterparts, at 83%), 19% have borrowed using a financial institution/mobile money account (vs 18%) and 36% have saved using a financial institution/mobile money account (44% of men). Potentially more interesting, is that the proportion of women who had saved any money (via formal or informal mechanisms) was higher for women than for men, with 64% of women, versus 60% of men. One of the implications is that women are saving outside the formal financial economy – either using stokvels or neighbourhood groups. The reasons may include lack of trust, or (speaking to the second point) lack of credible information. Financial literacy extends beyond knowing what saving is, it should extend to knowing what the “best” ways to save are, and being able to make informed decisions as to what makes sense for your own situation. Financial literacy needs to be a core focus area, not only for young people, but also for an older generation of women, who often find themselves largely responsible for managing households’ money.

Gearing women to the new economy – including the transition to STEM 

According to research conducted by LinkedIn, relative to their male counterparts, women remain underrepresented in STEM employment across industries. As an example, in the Financial Services Industry, only 13.4% of women are in STEM occupations (versus 24.6% of men). Simultaneously, they remain overrepresented in non-STEM occupations. 

This is effectively a double-whammy when it comes to technological and workforce transitions. Not only are women more likely to be employed in non-STEM industries, but they are also likely to remain in the lower-growth jobs which are more likely to become obsolete in the technological transition. Partly as a vestige of traditional gender roles, women often find that they don’t have the same type of opportunities when it comes to upskilling themselves. 

This is changing, albeit slowly. Industry initiatives are focusing on getting young females into graduate/training programmes which will help them remain relevant in their chosen occupations.

The IEEE (Institute of Electrical and Electronic Engineers) is described as one of the world’s largest technical professional organizations dedicated to advancing technology for the benefit of the human race. The IEEE Women in Engineering (WIE) aims to facilitate the recruitment and retention of women in technical disciplines. In line with this mission, the South African chapter has launched the STAR (Student Teacher and Research Scientist/Engineer) programme. The programme currently reaches disadvantaged schools primarily in Gauteng, but the hope is that it will expand in the coming years. The programme connects young women to tutors and mentors in the engineering and science professions, facilitates visits to companies and engagements with management, and provides support for female students in applying for their chosen field of study. In a similar vein, the Financial Services industry has the Fezeka programme, which enables young female graduates to gain practical exposure to the working world of finance. 

From seemingly simple steps – such as sanitary pad drives and financial literacy workshops – to those which may seem more complex – ensuring that women are educated to be future-fit for an evolving economic landscape – these are examples of initiatives that are already gaining ground. These are boots-on-the-ground, money-where-your-mouth-is initiatives which we can and should, in our personal and professional capacity, nurture and grow. As one of the most meaningful ways to ensure Gender Equality, education and financial inclusion must take centre stage.