Charting the path for a financially empowered South Africa

By Leana de Beer, CEO of WaFunda

South Africans are spending over 75% of their take-home pay on debt, according to the latest figures from the South African Reserve Bank. Car and home repayments already take up more than half of many peoples’ salaries, and on top of that, South Africans commonly have credit cards and several retail accounts.

Consumer insight firm Experian tallied 23.3 million consumers in SA with a total of nearly R2 trillion in formal debt accrued through credit cards, various loans, or retail accounts.

South Africans – especially young South Africans – are drowning in debt. As many South Africans are not making ends meet, the prevalence of illicit loans from illegal micro financers, or amashonisa, is concerningly high. Local loan sharks are notorious for their exorbitant interest rates and brutally coercive extortion for repayments.

Financial literacy should be a cornerstone of education at all levels. One of our key strategies is to embed financial education into the bursary funding environment, targeting the young people who will drive tomorrow’s economy and ensuring that tertiary education equips our young leaders with the knowledge to make wise financial choices.

Blackbullion South Africa is a new digital platform offering financial education for South African students. It was adapted for the local market from an award-winning international platform, used by some 700 000 students, and trusted by over 40 university and college partners across the UK, Australia and New Zealand.

Blackbullion South Africa takes the form of multi-media content streams, convenient lessons, quizzes, videos and articles, all structured into modules across personalised learning pathways. The content covers the fundamentals of financial literacy, such as budgeting, saving, debt, and investing. We have also developed modules that speak to the unique situation of students and youth in South Africa.

An important part of Blackbullion South Africa’s content development and localisation process involves discussions and focus groups with students to ensure the content is accessible and relevant for a local audience.

The platform takes a holistic approach to financial well-being without promoting any specific bank, product or service. Instead it encourages the shifts in behaviour that will drive our future leaders towards financial success.

Through working with the private sector bursary providers, our goal is to bring long-term benefits, arming bursary beneficiaries with the latest tools and best practices for money management. Our view is that while we believe access to education should be democratised, we should also enhance access to financial literacy programs to enable overall improved quality of life for students and youth.

Financial literacy is a crucial life skill with impacts on mental health, tertiary study experience, and long-term quality of life. Financial freedom is a key component to a life of meaning and fulfilment.

Financial literacy will allow young people to access what is important to them and help them gain the courage and confidence to attain professional fulfilment. The private sector is well-positioned to weave financial literacy into their bursary and student funding programmes, leading to better lives for students, better businesses, and – ultimately – economic growth for SA.

WaFunda is a for-profit social impact enterprise focusing on financial literacy and access to education funding for youth and students.