In honour of women during the Women’s Month, MEC for Finance, Ina Cronjé, today confirmed the need for women empowerment by sharing financial literacy lessons with emerging rural business women from Elandskop, just outside Pietermarizburg.
Cronje started the day with a business breakfast sponsored by Absa Bank which was attended by over 200 rural business women at Golden Horse casino in Pietermaritzburg before moving on to KwaMncane Community Hall, Elandskop where thousands of rural business women had gathered to hear how they could better manage their budgets in order to grow their small businesses.
She said it is important for women to understand their role in growing the economy. “If China and India each represent 1 billion emerging participants in the global marketplace, then a third billion is made up of women around the world whose economic lives have been stunted, underleveraged or suppressed,” she said.
Explaining why countries should invest in women, Cronje said women form the largest growing economic force in the world, they play an important role in reshaping industries like financial services. And that the female propensity to save may fuel growth in countries such as India, where about 50% of all household assets are currently held in land and machinery.
She further said that in the developing countries, the economic empowerment of women is a prerequisite for sustainable development, pro-poor growth and the achievement of all the Millennium Development Goals (MDGs).
“Women have lower levels of knowledge and confidence on financial issues. They have to manage greater financial risks: they typically live longer than men, and often have lower life-time earnings and most mothers in South Africa are single breadwinners, said Cronjé.
She said that in order to address low levels of financial education for women, quality financial education should start in the foundation phase and that differences in financial literacy and behaviour by gender should be explored further, to gain a deeper understanding of the specific aspects of financial literacy that might negatively affect the financial well-being of women and design better targeted policy interventions.
Cronjé said women have to manage greater financial risks and it therefore important for them to be well-equipped to make long-term financial plans, including retirement planning. Explaining why businesses should save, Cronjé said saving plays an important role in fighting poverty and the rising food prices.
“Keep part of profit to finance your businesses so that they can grow further and create more job opportunities. Training programmes will also help female entrepreneurs gain the skills needed to better design and present their financial plans,” said Cronjé.
Cronjé encouraged women to start saving now for the always financially demanding festive season. Duduzile Nzimande, one of the aspiring business women, said MEC Cronjé brought them the information and encouragement that they have always been lacking.
“I am involved in agriculture business. I have a plot where I grow potatoes, beetroot, cabbage and spinach. My aim is to grow these vegetables in order to feed my family and also to sell some of it. I have also been empowered with ideas on saving money. I now know that I need to use my money very wisely and save some of it,” said Nzimande.
She said that she has also been warned against using loan sharks as that only serves to impoverish her.“It is amazing to get such information during women’s month where we as women need information to develop ourselves and start own businesses,” she said.
