Are More Women Investing, Really?

This International Women’s Day (8 March), Fikile Mbhokota, CEO of Satrix, poses the question, ‘Are more women investing, really?’ It’s tough to answer. In 2023, Fidelity found that globally, 60% of surveyed women were investing in stocks, with younger women, especially, leading the charge. 71% of polled Gen Zs and 63% of millennials were investing. The CFA Institute had historically reported that just 40% of women were investing, so it seems progress is being made. However, it is not equal worldwide; and progress still doesn’t mean gender financial parity.  
 

What’s the South African Story?

Mbhokota says that 46% of all SatrixNOW registrants in 2024 were women. When it came to registrants who went on to fund their accounts, women investors showed more commitment and took the lead at 53%. Additionally, only 44% of all withdrawals last year were made by women. 

Mbhokota says, “In 2016, 63% of all SatrixNOW registrants were men. We’ve really focused a lot of energy and resources towards democratising investing and opening financial markets to everyone. As the CEO of the largest index-tracking business in the country, I feel an immense responsibility to empower the women of our nation, especially through our platform, SatrixNOW, where you can invest for as little as R10.

The average age for female registrants - in 2024 - who have funded their accounts on SatrixNOW is currently 33. In terms of where women registrants’ funds were flowing: 33% of deposits into the standard SatrixNOW accounts were made by women, 44% of deposits into Satrix Tax-Free Savings Accounts were made by women, and women accounted for 33% of deposits into Satrix retirement accounts. Interestingly, most SatrixNOW deposits were made in July and October; TFSA deposits were mostly made in March. 

“My story is rooted in my desire for everyone to be able to build financial security for successive generations. I’ve changed my family’s story; I want all women to have that chance. Stats SA found that nearly 43% of all South African homes are headed by women. Imagine if we helped all these women change from savers to investors. If you educate a woman to invest, you can change a nation’s story for generations to come.”  
 

Some Good News

Mbhokota adds that it’s extremely encouraging that the average age of SatrixNOW’s female registrants has dropped to 33 (from 41 in 2023). “That’s a big shift and shows positive momentum in our younger generations to start the process of wealth building early on.”

This could reflect some fundamental demographic shifts in the country; Eighty20 reported that there are close to half a million more women with tertiary degrees than men in South Africa, with over 200 000 more women currently in higher education. 

The wave of women investors on SatrixNOW is making a positive shift. Fast forward to 2024 where the number increased to 46%, from just 37% back in 2016.  

SatrixNOW data for retired investors also painted a positive picture, given the traditional narrative that women are not saving or investing sufficiently for retirement. Women accounted for 58% of all retired investors. The average age of retired women investors was 70. 
 

Much More To Be Done

Mbhokota says that in 2024, third-party contributors (family members or friends) were contributing funds to more women’s SatrixNOW accounts than men’s, while more men (29%) were funding their investments with their salaries than women (22%).  This trend is even more evident the higher the income band. 

Globally, UN data shows that women’s labour force participation sits at 50%, while men’s is at 80%. Women also still earn 80% of what men earn, with the gap even wider in emerging economies. The 'motherhood penalty' means the wage gap widens with each child a woman has. The World Bank reports that over a billion women worldwide still don’t have any access to finance at all.

It's critical to be cognisant of the bigger picture when answering the question of whether more women are investing. Many millions of women remain unbanked, let alone invested. A provincial breakdown of Satrix’s women registrants in 2024 is telling of this global story. 

Gauteng is over-represented, with 45% of all SatrixNOW female registrants. The Western Cape has 18%, and KwaZulu-Natal has 13%. The Northwest Province has just 4% of Satrix women registrants, the Free State has 3% and Northern Province has 1%. Mbhokota adds, “There are many reasons behind this, and we would expect some of these skews. But how do we change the picture? How do we reach the single mom in the smaller cities and towns and help her start her investing journey? How do we show her that this is for her and that she can get going with contributions of just R10 a month?”

Crucially, Mbhokota says we are moving forward. “More women are investing. We’re seeing this in SatrixNOW statistics and from data worldwide. However, there’s also a question of how much women can invest, and how frequently compared to men. We must continue to push for parity in terms of labour force inclusion and fair pay. The World Bank estimates that closing Africa’s gender gap could add another US$2.5 trillion to the continent’s GDP by 2025. 

“A big part of this also means closing the gap in financial education and opportunity. BrandMapp found women still tend to be more risk averse than men, with fewer growth-oriented assets in their portfolios. Let’s encourage each other to be bold and go for growth, while still drawing on our gift of considered caution. Women need to lift each other by sharing conversations around money and investing. We need to lean on and learn from each other.”

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