GENDERED FINANCIAL EXCLUSION IN SOUTH AFRICA:
Structural Barriers, Historical Legacies, And Policy Pathways For Inclusive Development
WORDS BY Dr Loyiso Maciko who holds PhD in economics
Financial inclusion refers to ensuring that individuals and businesses traditionally excluded from the formal financial system can access affordable financial services, while financial exclusion denotes the absence of such access, a challenge widespread across developing economies.
Women are disproportionately affected, as social, cultural, and economic barriers limit their ability to engage with formal financial institutions. Although financial inclusion is essential for poverty reduction, economic empowerment, and broader social gains such as improved financial literacy, gender equality, and reduced corruption, progress in South Africa has been uneven. Persistent discriminatory norms and structural inequalities continue to impede women’s access to credit, savings, insurance, and other financial products.
These realities raise important questions about how financial institutions and societal structures reproduce gendered patterns of exclusion, and what ethical implications these inequalities have for women, their households, and society at large. They also highlight the need for more nuanced ways of conceptualising and measuring inclusion that reflect women’s diverse experiences.
Addressing these issues requires drawing on feminist theories, social justice frameworks, and critical development perspectives. Despite various initiatives, gender gaps in access to financial services remain pronounced, particularly in rural and low-income households where women bear primary caregiving responsibilities and have limited economic autonomy.
Understanding the drivers and consequences of these inequalities is essential for designing evidence-based policies that strengthen women’s financial inclusion and improve their overall economic wellbeing.
In a country where women constitute 32.2 million people, representing 51% of the population, the persistence of gendered financial exclusion remains a critical concern. Although women have made significant progress in digital connectivity—83.1% of female-headed households have internet access, and 77% use mobile internet—these gains have not translated into equitable financial participation.
Women continue to face substantial barriers in the formal financial sector, with only 7% holding credit cards and a mere 4.9% possessing mortgages, compared with 9.1% of men respectively. Compounding these disparities, women experience a disproportionately high unemployment rate of 35.9%, well above that of men (31.0%), further limiting their financial independence and asset-building capacity.
This pattern of exclusion underscores the need for more targeted, gender-responsive, and capability-enhancing financial inclusion policies. Without interventions that address the structural, economic, and social barriers faced by women, digital access alone will be insufficient to close South Africa’s gendered financial divide and advance substantive economic equality.
Historical Legacy of Apartheid
During the apartheid era, systemic policies severely constrained the economic participation of Black women in South Africa. Limited access to land for farming and income-generating activities entrenched poverty among Black households.
Education under Bantu Education further deepened exclusion, as Black women were channelled into curricula focused on domestic labour, cooking, cleaning, and childcare while being denied technical or business skills. These restrictions curtailed their access to skilled employment and reinforced economic dependence on men.
Apartheid laws also denied Black women meaningful property rights, preventing land ownership and restricting their ability to accumulate assets or access credit. As a result, many were excluded from formal financial institutions and unable to secure loans or savings instruments needed for housing, entrepreneurship, or economic mobility.
This institutionalised exclusion produced long-term patterns of inequality, poverty, and class stratification. In the post-apartheid period, neoliberal economic reforms further shifted responsibility to individuals to navigate financial systems independently, inadvertently reinforcing structural disparities.
Consequently, African women continue to face marginalisation within a financial system shaped by historically unequal power relations. The government has arguably abdicated its role in shaping economic structures under the influence of a neoliberal macroeconomic policy framework. This notion has reinforced existing disparities because capitalist principles continue to govern the economic environment, leaving African women marginalised according to existing social and economic hierarchies.
Cultural and Social Barriers
Cultural norms and longstanding patriarchal beliefs in parts of South Africa continue to hinder women’s financial inclusion. In some communities, women are still discouraged from owning property or working outside the home, echoing constraints entrenched during apartheid.
Such norms limit women’s ability to save, invest, and participate meaningfully in formal financial systems. These gendered restrictions are particularly evident in agriculture, where women form the backbone of subsistence farming yet remain largely excluded from land ownership, equipment, and capital.
Without title deeds or collateral, many women are unable to access loans or other financial products needed to expand production or enter commercial value chains. As a result, they remain confined to low-income subsistence farming, while commercial agriculture continues to be perceived as the domain of men.
Additional barriers such as requirements for spousal consent to access credit reinforce structural inequalities and deepen the gender divide. Addressing these constraints is essential for enabling women to engage in financially rewarding agricultural activities, build assets, and participate fully in South Africa’s economic development.
Policy Responses and Challenges
South Africa has introduced several initiatives to address gender disparities in financial inclusion, including the Women’s Financial Inclusion Programme and the Financial Sector Charter (FSC).
However, the FSC’s effectiveness has been limited by the absence of gender-specific targets and measurable indicators, resulting in weak accountability and insufficient resource allocation. Limited financial literacy among women further constrains participation in these initiatives.
The Financial Sector Regulation Act (FSRA) represents an important regulatory milestone with the potential to promote a more inclusive financial sector. Yet its impact has been undermined by the lack of a gender lens in its design and implementation.
The FSRA does not articulate gender-specific provisions or mechanisms to address the unique barriers women face, including restricted access to credit, savings, and insurance. Nor does it include measures to promote gender diversity within financial institutions, thereby limiting opportunities for women’s economic participation.
Complementing these frameworks, South Africa’s National Financial Inclusion Strategy (NFIS) aims to expand access to affordable and accessible financial services, particularly for underserved communities, including women. Through funding and capacity-building support for women-owned businesses, the NFIS has contributed to the growth of women entrepreneurs and supported broader economic development.
Nonetheless, sustained progress requires regulatory instruments that explicitly incorporate gender-responsive provisions, strengthen women’s financial capabilities, and ensure equitable access across the financial system.
Conclusion
Despite the introduction of financial inclusion and women’s empowerment policies, many women in South Africa continue to experience severe poverty, inequality, and economic insecurity. This persistent marginalisation reflects deeper structural issues and underscores the need to critically assess whether financial inclusion has effectively functioned as a tool for women’s empowerment.
Gender disparities remain deeply entrenched in the sociopolitical and economic spheres, making meaningful development impossible where inequality prevails. Financial inclusion strategies must therefore deliberately confront and dismantle gendered barriers.
Stronger, gender-responsive policies are required to safeguard women’s financial security and ensure that financial systems contribute to inclusive and sustainable development. For South Africa to progress toward a more equitable society, financial policies must be explicitly designed to protect, empower, and prioritise women within the broader inclusion agenda.
The persistence of gender inequality and women’s financial exclusion in South Africa raises fundamental questions about cultural norms, social justice, and inclusive economic development. Achieving meaningful progress requires more than policy reform and institutional restructuring—it demands long-term cultural change that challenges discriminatory norms and stereotypes.
While financial inclusion alone cannot eliminate gender inequality, it is a critical foundation for broader improvements in education, health, political participation, and economic security. Only through comprehensive efforts that address both structural barriers and cultural norms can South Africa build a more equitable society in which all individuals are empowered to participate fully, regardless of gender or economic status.