Empowering South African women through responsible credit

Credit has long had a bad reputation. For years, it’s been associated with financial distress, risky decisions, and debt traps. But South African women are rewriting that narrative. Through careful, deliberate borrowing, many are using credit as a tool for resilience – enabling education, covering unexpected emergencies, and building a more financially secure future for their families.

More than 50% of credit granted in South Africa today goes to women. This was not the case thirty or forty years ago. A woman working in a bank couldn’t even apply for a home loan without her manager’s approval. Thankfully, that’s no longer the case. Today, credit access follows income and responsibility, not gender, and women have become a significant credit demographic.

The country’s persistent gender pay gap, compounded by often unequal caregiving responsibilities, has made access to credit critical for many women-led households. Stats SA’s latest General Household Survey reveals that 42.4% of households in South Africa are headed by women. Meanwhile, the World Economic Forum’s Global Gender Gap Report shows that women typically earn between 23% and 35% less than men.

For these women, many of whom manage their household on a single income, credit is not a crutch, but a vital tool to help navigate life’s pressures.

Responsible vs. irresponsible credit use

Responsible credit isn’t about borrowing for the sake of it. It’s a strategic tool to improve the long-term trajectory of one’s life. When used wisely, credit can create sustainable value, better education, safer living conditions, and a more stable future. But that starts with understanding your own affordability and only taking on debt you know you can repay.

Irresponsible credit, by contrast, often funds non-essential spending: travel, superficial lifestyle upgrades, or luxury items. Credit should never be used to finance a life you can’t afford. Save for that bucket-list trip if it’s beyond your means. That’s when people get into trouble, and the bad reputation follows.

Technology, accessibility, and changing consumer expectations

Technology has played a pivotal role in making credit more accessible. Consumers now expect to apply, engage, and manage their loans online, often without any face-to-face contact. In response to this, we’re working with TymeBank to develop a joint venture focused on responsible lending through unassisted digital channels. The partnership has received Competition Commission approval but is still subject to final regulatory sign-off.

That said, not everyone is ready to go it alone. While many people prefer a quick digital journey, others still want help. We will offer both options, assisted and unassisted, so customers can engage in the way that suits them.

In an environment like this, consumers need more than just access; they need guidance on how and when to use credit, and when not to.

1. Use credit to improve your life: Borrow for education, healthcare, or other investments that offer long-term benefits or when the need is urgent
2. Don’t borrow for luxury expenses: Whether it’s your dream holiday or a much-needed pamper session – if you can’t afford it, don’t borrow for it, save for it.
3. Know your limits: Only take on what you know you can realistically repay, even if you're offered more.
4. Take ownership of your financial decisions: Just because a lender approves you doesn’t mean the credit is right for you. Make the decision based on your own situation, not what’s on offer.

Being a responsible lender isn’t enough if consumers are using credit irresponsibly. But when both sides get it right, the outcome can be life-changing, especially in households where every rand counts.

* Griesel is the CEO at Sanlam Credit Partnerships.

PERSONAL FINANCE