Financial crisis deepens for South African women, 40% being single mothers

As Women's Month draws to a close in South Africa, the fiscal load that women shoulder in silence and often alone, have been revealed in the insights from the latest Debt Rescue survey.

While people across the country brace themselves for job losses in the wake of the US Tariff hike, with households already stretched by record levels of debt, more and more South African women, of whom 40% are single mothers, bravely carry the baton of financial responsibility for themselves and their families. 

Debt Rescue's recent survey revealed some disturbing results and painted a grim scenario where women from all walks of life are being forced to make difficult financial decisions just to keep going, with 54% of those polled attributing their failing physical health to financial stress, and 43% saying they sometimes go without food or electricity to repay their debt, while 44% struggle to make their minimum debt repayments.

This concurred with the latest survey data released by FinMark Trust, which showed that 75% of adults who borrowed in 2024 did so to cover essentials like food, with 43% relying on credit just to put meals on the table. Rising arrears and defaults point to households walking a terrifying financial tightrope.

“The fiscal load that women shoulder in silence and often alone, came through loud and clear in the insights from our survey, which we conducted in July and early August, Women’s Month, to shine a spotlight on the real plight of women in South Africa right now,” CEO of Debt Rescue, Neil Roets said. 

“With more single mothers in South Africa managing household finances, often as the primary or sole income earners, the financial burden on them is especially significant. As the financial decision makers in their households, many are not just supporting their biological children but are also financially responsible for extended family members. This places them under tremendous stress and impacts their mental well-being. Something has got to change,” Roets added.

Data released this past week in the Household Affordability Index for August 2025 compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), showed that while the cost of a basic food basic price decreased month on month by R62.10 (-1,1%), but a year-on-year increase of R153.48 (2,9%).

The average cost of the Household Food Basket stood at R5 380.62 in August.

Among the steepest increases were beef tripe (6%), peanut butter (6%), and soup (5%), while items such as potatoes (-9%), onions (-15%), tomatoes (-12%), and carrots (-16%) provided some relief.

The National Minimum Wage (NMW) is R28.79 per hour, translating to R4 836.72 per month for a general worker.

However, PMBEJD’s calculations show that once electricity and transport costs are covered – amounting to 59.2% of the wage, workers are left with just R1 974.87 for food and all other expenses.

This means households are underspending on food by at least 46.6%.

In real terms, this leaves just R493.72 per person per month, far below the food poverty line of R796.

“Workers’ wages are not enough to support their families with nutritious food, particularly when transport and electricity absorb most of the income,” the report stated.

The August Affordability Index makes it clear: structural reforms in wages, transport costs, and social protection are urgently needed to ease the daily struggle for survival faced by working-class households.

According to a recent research survey undertaken by 1Life Insurance, who offer insurance specifically designed for women, the findings indicate that women are under intense pressure to make ends meet, with insufficient income (43%) and debt or high living expenses (21%) limiting them from becoming financially secure, while groceries and essentials (32%), rent (17%) and school fees or child related (17%) expenses make up the top 3 monthly expenses. 

“From this, you can see that with 63% of their money going to essentials, women are not splurging but rather focusing on what matters most to simply make ends meet,” 1Life Communications Manager, Andiswa Nyembe said.

“Most worrying is that 60% of the Debt Rescue survey respondents confirmed that they don’t have an emergency savings fund of any kind. It’s important to note that this is not for lack of trying, but rather because there is simply no money left at the end of the month to put away. This can really be likened to hanging on to the edge of a cliff. That is the reality that millions of South Africans across the country face.  It is no wonder that their mental and physical health is at risk,” Roets said.

CPI increase was no help 

Meanwhile, South Africa's consumer price inflation rose to 3.5% year-on-year in July, driven to its highest level since September 2024 by higher food and fuel prices.

“This will undoubtedly impact the deepening cost of living and national consumer debt crisis, as households, and particularly single mothers, struggle to field increased costs for essential goods like food, particularly meat and vegetables, and higher municipal tariffs for rates and utilities. This will decrease disposable income, reduce purchasing power, and place greater pressure on household budgets,” Roets said.

While South Africans struggle to stay afloat, with interest rates being one of the key factors affecting disposable household income, there will be no relief on this front, according to Johann Els, chief economist at Old Mutual.

Els said he expected rates to remain unchanged while the central bank focuses on guiding inflation towards its preferred 3% target in the months to come.

The latest Quarterly Labour Force Survey (QLFS) from Stats SA for Q2 2025 showed South Africa jumping past the 33% mark as the joblessness crisis deepens.

Significantly, the latest figures show that women continue to carry a heavier share of this burden, with the unemployment rate for women at 35,9%, compared to 31,0% for men, a gap of 4,9 percentage points.

“South Africans are under immense financial pressure, and the country risks a deepening financial and social crisis as rising living costs push many to rely more heavily on credit just to survive. This growing dependence on debt is unsustainable and places households on a dangerous path of long-term hardship,” Roets said.

“My advice to those who cannot break free from their debt spiral is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” Roets further said.

BUSINESS REPORT