Closing the confidence gap - IFSA Private Equity

Closing the confidence gap: More South African women are taking control of their financial futures

Johannesburg, 13 August 2025: South African women are reshaping the financial landscape, with the finances of nearly 40% of households now led by women. Women are increasingly exploring alternative investments and sophisticated financial strategies that were once considered the preserve of institutional investors.

Frikkie van Loggerenberg, CEO of IFSA, has observed this evolution firsthand. “Our market has seen a notable increase in the number of female investors over the past several years, accessing our funds primarily via linked-investment service providers, living annuities and endowment platforms and wrappers,” he notes.

Yet despite this progress, a significant confidence gap remains that prevents many women from fully realising their financial potential. Research shows that while 42% of male respondents rate themselves as very knowledgeable about investing, only 15% of women make the same claim. This disparity exists despite evidence suggesting that women often achieve better investment outcomes. Studies indicate that women investors typically outperform their male counterparts, with research from Fidelity showing a 40 basis point advantage over ten-year periods.

Van Loggerenberg attributes this advantage partly to behavioural differences. “Although we are careful not to overgeneralise, we have noted that women tend to stay committed to an investment strategy for longer than men – an approach which is more likely to achieve desired returns over time than trying to time the market or maintaining an overactive strategy,” he explains.

The implications of this confidence gap extend beyond individual portfolios. When women gain financial literacy, entire households benefit through better budgeting, stronger emergency preparedness, and reduced financial stress. Data from Experian reveals that women demonstrate lower default rates on credit agreements, suggesting they manage debt more responsibly than their male counterparts, making them less risky borrowers.

The journey towards financial confidence requires education, support, and recognition that different investors have different needs and preferences. Women often prefer investments they feel they understand well, such as property, which 43% of female survey respondents favour compared to 33% of men. Initiatives like the JSE She Invests programme are playing a crucial role in addressing this gap by providing knowledge, inspiration, and peer support. These platforms create spaces where women can learn from experts and each other, building confidence alongside competence.

The rise of accessible investment platforms has also democratised financial participation. Women no longer need substantial capital to begin their investment journey. From traditional equities to alternative investments, the barriers to entry have lowered significantly, allowing more women to build diversified portfolios aligned with their risk profiles and life goals.

For IFSA, supporting women’s financial empowerment means providing comprehensive financial solutions that extend beyond single asset classes. “We have long advocated for the importance of alternative investments in any well-rounded investment portfolio, and we welcome the increased interest in the class from the wider investment community,” van Loggerenberg states. The company’s holistic approach recognises that financial success requires a blend of traditional and alternative strategies, tailored to individual circumstances and objectives.

As South Africa moves forward, the economic participation of women becomes increasingly critical to national prosperity. The financial services industry must continue evolving to meet the needs of women investors, providing not just products but also the education and support necessary to build lasting financial confidence.

Van Loggerenberg concludes: “By making diverse asset classes part of their investment strategy, people, no matter their age or gender, are able to secure the diversified returns that we value, meaning more consistent growth over time is achieved. The key is ensuring that women have the knowledge, tools, and confidence to take full advantage of these opportunities.”