Why Old Wealth Models Fail Women and What SA Can Do

What happened

Growing evidence shows that traditional ways of building and managing wealth no longer work for many groups, especially women. Older models often relied on assumptions that do not fit today’s reality—such as stable lifelong employment or inheritance patterns that favor men. As a result, women worldwide face obstacles to accumulating wealth and financial security.

A recent global report highlights how these outdated wealth models are breaking down, urging businesses and policy makers to rethink how wealth is created and shared. This is especially important for economies like South Africa’s, where gender inequality remains a significant challenge.

Why it matters

In South Africa, women make up nearly half the population but are disproportionately affected by poverty, unemployment, and limited access to financial services. The traditional wealth-building paths—property ownership, formal employment in high-paying jobs, or inheritance—have historically favoured men. This leaves many women without a strong financial foundation.

Failure to adapt wealth models not only harms women but affects the broader economy. Studies suggest that when women are empowered economically, their communities benefit through increased spending, improved education for children, and better health outcomes. Conversely, ignoring women’s financial inclusion limits economic growth and widens inequality.

What this means for South Africans

For everyday South Africans, recognizing that older wealth models do not serve women well is key to fostering economic equity. This includes understanding barriers women face, such as limited access to credit, lower participation in formal job markets, and cultural norms that restrict financial decision-making.

South African policymakers and financial institutions need to create inclusive solutions. This can mean offering more flexible loan products tailored to small-scale women entrepreneurs, investing in female-led businesses, and promoting financial literacy programs that specifically address women’s needs.

Additionally, informal businesses, often run by women in townships and rural areas, are crucial to the SA economy. Supporting these enterprises with better access to energy, technology, and markets can help women build sustainable wealth.

Impact on consumers, jobs and small businesses

Small businesses, many owned by women, form the backbone of South Africa’s economy. When wealth models exclude women, female-led enterprises struggle to grow due to lack of capital and support. This limits job creation in communities where unemployment is high.

Consumers benefit when a diverse group of entrepreneurs thrive. Female entrepreneurs often bring different products and services to market that better meet local needs. Empowering women can expand consumer choice and stimulate innovation.

For job seekers, especially young women, outdated employment models mean fewer opportunities for stable, well-paying jobs. South Africa's high youth unemployment rate (around 40% in mid-2023) highlights the urgent need for new approaches that include flexible work options, skills development, and support for entrepreneurial ventures.

Risks and limitations

Recognizing the need for change is a start, but shifting wealth models is complex and slow. Deep-rooted cultural and systemic issues exist, such as gender biases in lending, workplace discrimination, and unequal domestic responsibilities that limit women's economic participation.

Moreover, economic volatility or policy changes can sometimes disproportionately impact women. For example, rising costs or energy shortages may burden informal traders more, as many female entrepreneurs operate in small-scale, resource-constrained settings.

Efforts to modernize wealth creation must also guard against excluding other marginalized groups. A focus solely on gender without addressing race, disability, or rural-urban divides may miss key barriers.

South Africa’s path forward requires coordinated action from government, business, and civil society. Investing in gender-responsive policies, improving financial services access, and supporting female entrepreneurship can build a more inclusive economy that benefits all.

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Source: Outdated wealth models no longer work for women — original report on global economic trends and the need for new financial models

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