Empowering women’s financial independence – a global and African perspective
5 min read
As we approach a significant global generational wealth transfer, women are set to inherit a substantial portion of the estimated $30 trillion from baby boomers by 2030. This shift in how we obtain wealth presents an unparalleled opportunity for women to gain financial independence and reshape wealth management practices.
As the number of women primary wealth holders increases, so does the need for tailored financial advice and services.
Global wealth transfer and professional advice
The wealth transfer necessitates tailored wealth management strategies. Unlike their male counterparts, women show a greater demand for professional financial advice, focusing on achieving life goals and ensuring financial security. This includes a comprehensive understanding of risk tolerance, investment diversification and estate planning.
Economic contribution in Africa
Women’s economic empowerment could contribute up to $28 trillion globally. In Africa, women are significant contributors to the economy and play a crucial role in community development and social stability.
Female entrepreneurs in Africa face a $42-billion credit gap, which limits their business growth potential. Addressing this gap is essential for developing an inclusive financial environment that supports women-led businesses.
Risk tolerance and investment strategies
Women generally exhibit a lower risk tolerance or are more risk-conscious, preferring conservative investment strategies that align with their life goals. This conservative or risk-conscious approach often leads to better long-term investment outcomes, as women are less likely to make impulsive decisions based on market fluctuations. According to research, women save more of their income and maintain diversified portfolios, leading to better long-term performance.
Gender-lens investing
A movement like the 2X Challenge has mobilised $16.3 billion in gender-smart investments, providing critical financial resources to women entrepreneurs. The 2X Challenge is an initiative by development finance institutions and international financial institutions to promote gender-smart investments that support women’s economic empowerment.
As women continue to gain financial independence, the wealth management industry must evolve to meet their unique needs. With the right advice and services, women can confidently navigate their financial futures and secure their legacies. Economically empowering women in Africa is essential for the continent’s sustainable development. We can bridge the credit gap through targeted investments and support and unlock vast economic potential.
By focusing on the interconnected aspects of wealth management, we give personal and objective advice and services that women entrepreneurs in Africa want, thereby leading the way in economic transformation.
“Women tend to be more conservative or risk-conscious investors, which aligns well with a long-term, goal-oriented approach to wealth management,” reiterates Precious Mulambo, wealth manager at Nedbank Private Wealth. “This trend underscores the importance of personalised advice to meet their unique financial needs. By obtaining professional well-structured wealth plans, women can ensure steady wealth growth, which is crucial for long-term financial security.”
The importance of connected wealth becomes crucial, as it encompasses every aspect of women’s financial decision-making, helping them connect their financial decisions with their life goals and aspirations.
In the table below is a short summary of the 5 pillars of wealth management with which we can help women take advantage of the opportunities to grow and protect their wealth and leverage opportunities:
Nedbank Private Wealth emphasises the importance of connected wealth, offering personalised globally integrated advice that aligns with women’s goals and life circumstances. This holistic approach ensures each financial decision made supports the overall well-being of women and their families.
Whether through tailored investment strategies, structured wealth planning or optimised banking solutions, the goal is to empower women to achieve financial independence and security by helping them protect what is important to them and achieve their life goals and aspirations.
Tracy Muller
Head: Advice and Philanthropy
Want to know more? Contact your wealth manager. If you’re not a client yet and want to find out more about how we can help you, call us on +27 860 111 263 or complete the online contact form.
Image credit: Freepik
