Despite their critical role, women continue to experience higher financial stress than men. According to the 2024 OMSIM, women's financial stress levels stand at 39%, compared to 34% for men.
“The digital realm offers a unique opportunity to address the challenges faced by women entrepreneurs,” says Shakira Nursoo, strategy executive at Old Mutual.
She emphasises that digitalisation can create a more inclusive environment for women entrepreneurs, thereby contributing to broader economic growth and enhancing their financial stability.
The International Finance Corporation reports that closing gender gaps in the e-commerce sector could add nearly $15 billion to the value of Africa’s e-commerce industry between 2025-2030 alone —putting billions in the hands of women entrepreneurs.
Benefits of digital for women entrepreneurs
“Building a digital business offers lower barriers to entry. For example, women can make items to sell, receive money safely through mobile wallets, and get online guidance on tax implications as well as how to best save what they have earned,” says Nursoo.
Internationally, digital businesses have proven to be successful in helping women earn an income, she adds. A recent study by Business Fights Poverty found that 25% of the women it surveyed, 1,100 women entrepreneurs across 81 low and middle income countries, credited increased digital inclusion as being vital in business success, while 32.8% said they were being successful thanks to improved access to business networks, which included those online.
The World Bank has also highlighted that women are increasingly benefiting from online opportunities, with nearly half of women earning most of their income online, compared to 37% of men.
There is no doubt that the digital world provides women with numerous opportunities to earn an income while also offering the flexibility to manage family responsibilities
Old Mutual supports digital inclusion through tools like Moneyversity and On the Money, available online and via WhatsApp, which aim to enhance financial education. More than 60% of users are female, demonstrating a growing interest in digital financial education among women.
“At the same time, we're building a digital ecosystem for entrepreneurs through SMEgo, designed to streamline operations and address the daily challenges faced by SME owners. The platform offers access to funding, insurance, business tools, and cashflow management with financial insights," Nursoo notes.
Currently, 60% of SMEgo users are women.
Overcoming barriers
“While studies show that women still earn less online, it's important to recognise that overall income across all women on average will increase because more women than men use online platforms to either find work or start their own businesses,” says Nursoo.
However, she points out that there are still challenges to be overcome to allow more women to work online. The pay gap in South Africa according to SA-TIED, is an average of 14%. Consider the fact that less women are employed than men, and the income gap widens.
Globally, more than half of women do not have access to the internet according to the UN. In South Africa, only 51% of women have internet access compared to men. Additionally, smartphone penetration in South Africa is just 27%, with a 15% gender gap in mobile device ownership across sub-Saharan Africa, compounded by a similar gap in internet access, as reported by GSMA.
She notes that the only way to close this gap is for all stakeholders across the public and private sector to work together to focus and scale efforts to support women entrepreneurs.
We need to ensure that these obstacles do not translate into missed opportunities in our digital transformation journey, to empower women in all aspects of financial freedom and in doing so bolster our economic growth
