FINANCE
RESPONSIBLE CREDIT CAN LIBERATE A NATION’S WOMEN At least 40% of mothers in South Africa are single parents, and only 25% of children in this country are part of a nuclear family.
T
he reality of these statistics is that many women have to make ends meet on their own, often without any contribution from the fathers of their children. Government grants, help from family members and working more than one job help to fill the gap, but so can credit – a resource that is often overlooked.
“Woman puts her daughter through university by using credit cleverly.” This is not a headline we have seen before, and more’s the pity, as this real-life story illustrates. When 18-year-old Pumzile Ndlovu announced that she wanted to go to university – and had achieved the marks to secure a place – her mother despaired. Without a husband and living a simple life in Eastern Cape, her options for funding her daughter’s studies were limited. Soon, however, Ms Ndlovu’s innate resourcefulness suggested a solution. Over the next three years, Ms Ndlovu took out a series of loans from her trusted credit provider
28
www.transformsa.co.za
“Ms Ndlovu secured a future for her daughter and gave her a further head start by enabling her to start her career. She could do this, because she understood that when credit is geared towards a specific goal and managed well, it can change lives.” to pay for tuition, books and accommodation. “I remember how cleverly she managed those loans,” says Phumzile, “always making sure that she paid
her dues so that she would not lose her line of credit. That’s how I got through varsity.” According to Alfred Ramosedi, CEO of Bayport South Africa, stories like these highlight the power of responsible credit combined with financial literacy. “Ms Ndlovu secured a future for her daughter and gave her a further head start by enabling her to start her career. She could do this, because she understood that when credit is geared towards a specific goal and managed well, it can change lives.” Sadly, in the context of South Africa’s overindebtedness crisis, credit is more often painted as the cause of the problem, than a potentially powerful solution. “When people understand how to leverage credit to achieve their ambitions, the impact is immense,” says Ramosedi. “For women in particular, the right credit at the right time can bring about a step change and liberate them from the limits imposed by single parenthood.” Given South Africa’s family statistics, such liberation is also an act of nation building.
