The benefits of empowering women in the workforce

South Africa is ranked fourth in the world with one of five directors being female, but the country lags with regards to women-owned businesses and entrepreneurs. Picture: Supplied

South Africa is ranked fourth in the world with one of five directors being female, but the country lags with regards to women-owned businesses and entrepreneurs. Picture: Supplied

Published Apr 7, 2016

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Women make up 50 percent of the total global population and 40 percent of the global workforce, yet own only 1 percent of the world’s total wealth. According to global statistics, female unemployment levels remain higher both in educated and less educated categories.

A recent upsurge in the participation rate of women in the workforce, however, indicates that almost 150 million more women will join the global workforce by 2025. This number will potentially rise to 210 million as opportunities for female employment increase and educational opportunities improve.

The Asia Pacific region is expected to lead, with the largest female workforce and millennials representing the largest portion of female employees by 2025. In Europe and North America, the ratio of females to males in the workforce will become more balanced.

In Africa, more than half of the population will be under the age of 30 by 2025. The continent is anticipated to have the largest workforce pool in the coming decade. As a result, it has become evident that providing women with equal opportunities within the labour force will play a significant role in improving economic growth.

Board representation

Despite the fact that only one in every 26 African women is hired in a senior management position, compared with one in every six men, South Africa is making significant progress and is appointing a number of females into board and chairwoman positions.

The country currently ranks fourth highest in the world with one in five directors being female. Statistics show that only 19 percent of South African companies are without a woman on the board. South Africa, however, is still lagging with regards to developing female-owned businesses and entrepreneurs.

According to the Global Entrepreneurship Monitor 2014 Women’s Report, the total entrepreneurship activity rate in South Africa is low when compared with neighbouring African economies such as Botswana, Uganda and Malawi.

Despite the prevalence of a gender pay disparity in South Africa, females now have increased spending power, with 92 percent of all purchasing decisions made by women. This is predominantly as a result of the fact that African and South African women are becoming more independent and are breaking up their traditional stereotypical roles.

More and more women are earning their own money and supporting families and so affluent, single women have become a significant consumer segment in South Africa.

Growth opportunity

Women are emerging as decision-makers when it comes to the procurement of most consumer products.

Women from emerging nations, such as South Africa, represent one of the highest growth opportunities for an investor today.

Key sectors that present investment opportunities include: agriculture, health care, beauty and lifestyle, retail, financial services, telecoms services, automobiles and real estate.

We are seeing an ever-growing female talent pool emerging from schools and universities, an increase in women in the workforce, a rise in women in leadership and managerial positions, and consumer spending power now shifting over into the hands of women.

How is your organisation addressing this shift? Is your business ready to capture the world’s largest future potential consumer base?

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Malabika Mandal is a senior research analyst at the Visionary Innovation Group, Frost & Sullivan.

** The views expressed here do not necessarily reflect those of Independent Media.

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