Women Hold 74.32% of Business Debt, Yet Own Fewer Assets - Navigating Financial Struggles As Women’s Month Comes To A Close

Despite holding 74.32% of business debt, women own fewer assets. Milaw Legal's Somila Gogoba shares expert tips on managing debt and building financial stability.

25 March 2025: March is International Women’s Month—a time to celebrate the strides women have made, while also acknowledging the financial challenges that persist. Despite their remarkable entrepreneurial spirit, women continue to face significant hurdles in building wealth.

They own fewer key financial assets, such as real estate (43.55%), vehicles (40.83%), and stocks or shares (only 1.1%, compared to 1.7% for men). At the same time, they are disproportionately burdened with business debt, making up 74.32% of the total, a clear reflection of their resilience and drive in the face of economic barriers.

To help women navigate these challenges, Milaw Legal’s Department Manager, Somila Gogoba, shares expert advice on tackling post-holiday debt, preparing for economic shifts, and building a sustainable budget for the year ahead.

“Household debt in South Africa is a financial minefield, and women—who often bear the brunt of family spending—are feeling the pressure. A study by Professors Daniela Casale and Adeola Oyenubi from Wits University found that while 62% of women have bank accounts, only 65% maintain a positive balance, compared to 72% of men,” said Gogoba

She said women face unique financial challenges, including being more likely to be single parents, earning less due to the gender pay gap, and shouldering family-related financial responsibilities.

To effectively manage their debt burden, Gogoba encouraged women to explore debt mediation ensuring fair repayment plans that align with their income.

“Debt mediation can be a game-changer for women struggling with repayments,” Gogoba explains. “It allows them to negotiate better repayment terms with creditors without resorting to costly legal battles.”

With the recent VAT increase announced in the Budget Speech, South Africans are already paying more for everyday essentials.

“For women with loans and credit, rising costs mean higher repayments, increased financing expenses, and less disposable income. To bounce back, women should review their financial agreements, lock in lower interest rates, and avoid new debt unless necessary.”

She offered the tips:

• Plan for Income Fluctuations: Budget based on average income, prioritizing essentials and building a buffer for unexpected expenses.
• Embrace a Flexible Budget: Use the 50/30/20 rule, allocate funds for emergencies, and adjust as needed.
• Track and Review Spending: Monitor expenses monthly to identify savings opportunities and reduce unnecessary costs.
• Prepare for Rising Costs: Cut discretionary spending, reduce high-interest debt, and explore extra income sources in anticipation of price hikes.

“Financial empowerment starts with small, smart decisions,” says Gogoba. “Women must take control, seek professional guidance, and build a future where financial stability is the norm—not the exception.

About Milaw Legal

Milaw Legal is a debt management company committed to empowering South Africans in their battle against debt. With over a decade of expertise in financial services, the organisation offers a range of high-calibre debt relief services tailored to meet each individual's unique needs, including debt review removal, judgment removal, and affordable distribution. Guided by values of integrity, empathy, and innovation, Milaw Legal provides personalised and comprehensive legal services, ensuring clients achieve financial stability and long-term success.