Investing in gender equality and empowerment

Throughout the year, we celebrate women on occasions such as Women’s Month, Mother’s Day, and International Women’s Day. These days focus on honouring their contributions and highlighting the ongoing fight for gender equality and empowerment. However, it’s important to consistently go beyond these moments to truly support the rights and potential of every woman and girl, but to also recognise the broader advantages of investing in gender equality.

Beyond the moral need to advance gender equality and empowerment, there is a wealth of data that highlights the economic advantages too. For example, did you know that by acting now to advance gender equality we could add $13 trillion to global gross domestic product (GDP) by 2050? Or that improving gender equality in the EU could lead to a 9.6% increase in EU GDP per capita? This is equivalent to €3.15 trillion, and an additional 10.5 million jobs by 2050. The endless number of stats speak for themselves¹.

The difference between gender equality and empowerment
Gender equality is all about ensuring that individuals, regardless of gender, have equal rights, opportunities, and treatment in every aspect of life. This includes areas such as education, employment, healthcare, politics, and beyond. It involves breaking down stereotypes and biases that hold people back based on their gender.

Empowerment goes beyond equality. It involves equipping women and girls with the tools, resources, and support needed to make informed decisions and seize control of their lives. It’s about enabling them to pursue their aspirations and contribute meaningfully to society. When women and girls are empowered, societies thrive. Remember, they represent half of the world’s population and therefore also half of its potential. In fact, according to research by Goldman Sachs, even just cutting gender inequality in half could raise GDP across economies by 5-6%² .

The reality of gender equality in 2024
You may be forgiven for thinking, we’re a quarter of the way into the 21st century and yet, why does gender equality remain an elusive goal? Unfortunately, women still face significant disparities in the labour market, earning 23% less than men globally on average³. They spend about three times as many hours on unpaid domestic and care work as men; and at the current rate, it is estimated that it will still take a staggering 300 years to end child marriage, 286 years to close gaps in legal protection and remove discriminatory laws, 140 years for women to be represented equally in positions of power and leadership in the workplace, and 47 years to achieve equal representation in national parliaments⁴.

Whilst there still remains quite a journey ahead, there are signs of progress and optimism. The past decades have seen remarkable strides in advancing gender equality and empowering women and girls. From the adoption of international conventions and agreements to the implementation of targeted policies and programmes. From just 2.4% of CEOs being women in Fortune 500 companies in 2008 to now hitting 10.6%⁵ – progress has been made and should be celebrated.

The growing financial power of women
As we continue to celebrate women, it’s important to recognise the growing financial power of women and the valuable role wealth planning plays in securing their future. Women’s wealth is on the rise, and by 2030, it’s projected that women will control a significant portion of global wealth⁶. Investment trends show that women are increasingly seeking ways to grow their assets, with a preference for sustainable and socially responsible investments. Taking control of their finances is vital not only for individual empowerment but also for broader economic stability. Financial independence allows women to make informed choices, invest in their future, and pass down wealth to future generations too. Whether through savings, investments, or long-term wealth management strategies, women have the potential to drive significant economic growth. By prioritising wealth planning, women can protect their assets, build legacies, and contribute to the global economy on an even greater scale.

Nedbank Private Wealth has investment portfolios that align with UN Sustainable Development Goal 5: Gender Equality⁷. This means that the companies we invest in provide support for women’s leadership, advocate for policy reforms, and challenge systemic inequalities wherever they exist. And this isn’t mere corporate rhetoric; these companies back up their statements with actions, ensuring that an equal and fair percentage of women are in the workforce, including seats on the boards. They have diversity and inclusion policies such as those covering menopause and transitioning at work, as well as implementing equal pay practices/disclosing pay gaps, and offering family-friendly policies such as shared maternal/paternal leave and subsidised childcare.

Investing in gender equality is not just a moral need that helps us all to take concrete steps towards a fair and equal future, it’s also a smart investment strategy that recognises the value of diversity and inclusion in driving innovation and growth – ultimately leading to greater financial returns for us all.

¹Gender Overview 2024 (eib.org)
²Global Strategy Paper: Women (Still) Hold Up Half the Sky (goldmansachs.com)
³United Nations: Gender equality and women’s empowerment
⁴Sustainable Development Goals: 17 Goals to Transform our World | United Nations
⁵Women CEOs in Fortune 500 companies, 1995-2023 | Pew Research Center
⁶Women-as-the-next-wave-of-growth-in-US-wealth-management.pdf (mckinsey.com)
⁷Goal 5 | Department of Economic and Social Affairs (un.org)