Through our CFE approach, more than 50 000 South Africans have received financial literacy training since 2014.
Read more about each cluster’s contribution.
Consumer financial education (CFE) is a priority in many countries, including countries in Africa, India and Malaysia.
Financial literacy is key to improving individual financial behaviour, preventing over-indebtedness, protecting clients, contributing to market development and ensuring financial resilience and prosperity. It supports responsible financial inclusion and drives broader economic and social development goals.
In the markets in which we operate, the need for financial literacy cannot be over-emphasised. According to a global survey by Standard & Poor’s Financial Services LLC, less than 25% of adults are financially literate in South Asian countries. India is home to 17,5% of the world’s population, however, nearly 76% of its adult population do not understand basic financial concepts.
In the Southern African Development Community (SADC), the proportion of adults who:
Source: The FinScope Survey - a cornerstone project of FinMark Trust, whose primary goal is to promote financial inclusion. Information presented at the SADC Financial Inclusion Indaba, July 2017.
The SADC region includes some of Africa’s more developed markets, such as South Africa, Namibia and Botswana. In many other countries across the continent, the indicators of financial literacy are generally far lower.
While financial inclusion has increased, South African consumers are still struggling with high levels of debt. In addition to limited knowledge of resource mechanisms to help them structure debt better, consumers are susceptible to the economic pressures of rising living costs. This contributes to low saving rates, and is aggravated by associated factors such as predatory lending.
In South Africa, the Sanlam Foundation’s chosen CFE programmes respond to these needs. Programmes are conducted nationwide, in rural and urban areas, with special attention paid to poorer citizens.
The growing complexity of this environment in South Africa, as well as in the markets where we operate, demonstrates an urgent need for enhanced CFE that promotes understanding and awareness.
Our flagship financial literacy projects in South Africa include: