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JIMMY MOYAHA: Welcome to Personal Finance this Monday. Today, we are diving into a rising trend that isn’t really surprising—especially following the International Women’s Day celebrations over the weekend. Our discussion will center around ‘Women in Investing’.
Numerous statistics show that women are becoming more interested in investments. If I recall correctly, a study I conducted years ago indicated that female investors typically outperform their male counterparts. We’ll explore that in more detail shortly.
I’m joined by Ms. Fikile Mbhokota, CEO of Satrix, to discuss this subject. Good evening, Fikile. Thanks for joining us. Let’s start with the situation in South Africa. Satrix is a local enterprise, and your data reveals that 46% of SatrixNOW registrants in 2024 are women. That’s quite a remarkable figure.
FIKILE MBHOKOTA: Good evening, Jimmy, and to everyone listening. Yes, in South Africa, 46% of our registrants are women, up from 37% in 2016, which represents a nearly 10% increase.
Interestingly, South Africa reflects global trends; a 2023 Fidelity study found that 60% of women worldwide surveyed are investing in stocks, especially younger women. This demographic, including Gen Z and millennials, has risen from 40% nearly two decades ago.
This indicates a clear pattern: women are starting to invest, with the younger generation leading the charge.
As the largest index fund manager, this presents promising news, as our SatrixNOW platform facilitates investments starting from just R10.
However, we must also address the disparity in the amounts women can invest compared to men due to persistent gender equality issues.
JIMMY MOYAHA: Right, Fikile. Even with the growing interest among women, there’s always the question of whether they have the same level of disposable income for investments.
Moreover, data shows that women often take a different approach to risk when investing. In my experience, I’ve noticed that men can sometimes take unnecessary risks, while women tend to be more thoughtful in their investment decisions. Do your findings support this idea, suggesting that women’s decision-making is generally more cautious or at different risk levels?
FIKILE MBHOKOTA: Absolutely. Research from BrandMapp demonstrates that women are generally more risk-averse than men, leading to lower exposure to growth-oriented assets in their portfolios.
This gap may arise from traditional household roles, where women often manage short-term expenses like groceries and children’s activities, while men typically deal with stable responsibilities such as mortgages and school fees, which gives them a greater capacity for long-term investment.
Nonetheless, I always encourage women to maintain two funds: one for short-term savings and another for long-term investments. It’s vital for women to be bold and pursue growth while utilizing their natural caution.
JIMMY MOYAHA: Indeed, the data indicates that women can often be superior investors. Fikile, you mentioned that younger women are increasingly making investment decisions and engaging with platforms like Satrix. Can we conclude that they are taking control of their financial futures independently of potential partnerships?
FIKILE MBHOKOTA: Definitely. This is very encouraging. On our SatrixNOW platform, the average age of female registrants has decreased to 33 from 41 just last year.
This shift could signify significant demographic changes across the nation.
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For example, a study by Eighty20 indicated that there are nearly half a million more women than men holding tertiary degrees in South Africa, with more than 200,000 additional women achieving higher education compared to men.
This is a positive change, reflecting women taking charge of their futures, starting to invest, and prioritizing their long-term financial well-being.
JIMMY MOYAHA: Fikile, we cannot overlook the gender pay gap. The World Bank estimates that closing this gap could add a potential 2.5 trillion US dollars to Africa’s GDP.
What role do institutions like Satrix play in promoting this positive behavior? We often talk about saving and building that nest egg, as you mentioned, along with making financially sound choices. How can we foster the investment culture that appears to be emerging?
FIKILE MBHOKOTA: That 2.5 trillion US dollars is almost ten times our current GDP in dollars—an astonishing figure. Thus, enhancing access and opportunity is crucial. The challenge is to reach more women.
Financial education is key; bridging the financial literacy gap is vital, and platforms like this radio station that discuss personal finance are invaluable in motivating women.
Print media is also significant. On our website, www.satrix.co.za, we offer a variety of podcasts aimed at inspiring women.
Moreover, significant organizations, like the JSE, host important programs, such as the ‘She Invests Event’ annually and provide podcasts on their site.
Education is essential; the World Bank reports that over a billion women globally lack access to financial resources.
Bringing it closer to home, millions of women in South Africa remain unbanked, let alone invested. This is a critical issue.
On our SatrixNOW platform, when examining the geographical distribution, the majority of female registrants come from Gauteng (45%). This is followed by the Western Cape at 18%, KwaZulu-Natal at 13%, North West at 4%, Free State at 3%, and the Northern Province at just 1%. Hence, promoting financial education is essential.
JIMMY MOYAHA: Absolutely, financial education is fundamental, especially as we consider investments and strive to improve the lives of South Africans.
Let’s wrap up our discussion here. Thank you for those insights, Fikile. Fikile Mbhokota, CEO of Satrix, has been with us in this week’s personal finance segment, exploring whether more women are indeed investing.
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