According to recent research by Deloitte, only 0.3 percent of South Africans have been able to save. The level of financial literacy in South Africa is alarmingly low, with just 42% of the adult population being financially literate, according to a 2021 survey conducted by the Organisation for Economic Co-operation and Development (OECD). This means that more than half of South Africa’s adult population lacks a fundamental understanding of basic financial concepts, including interest rates, inflation, and savings. This issue is particularly acute in rural areas and among low-income groups, where access to financial education is severely limited.
One of the major hurdles to improving financial literacy in South Africa is the limited access to financial education. Many schools do not offer comprehensive financial education, and when they do, it often falls short of equipping individuals with the essential skills needed to effectively manage their finances. Despite Avo’s commendable efforts in providing financial education for over two decades, and training over half a million people, it remains a drop in the ocean for a country with a population exceeding 60 million.
A recent partnership with Aluwani has been instrumental in imparting financial knowledge to an additional 600 participants. When consumers become financially literate, they acquire crucial life skills such as budgeting, saving, investing, and planning. These skills are vital for achieving financial stability and overall well-being, and Avo’s various Consumer Financial Education (CFE) programmes comprehensively cover all the necessary knowledge components and skills.
Aluwani and Avo Vision have embarked on collaborative mission to empower as many communities as possible with the essential financial skills required to build a better life for themselves and their families. The programme was rolled out in Gauteng and the Eastern Cape, featuring 21 themed financial skills workshops held between July and August 2023. Modules covered a range of topics, including My Budget, Money Safety, Scams and Fraud, Managing Debt and Credit, Boosting Income, Money and Beliefs, Young People and Money, and Funding a Funeral.
This initiative proves especially beneficial for unemployed youth, as it encourages them to explore entrepreneurship as an alternative path. It also benefits employed youth by fostering wise income management and steering them away from irresponsible credit decisions. Here are some comments from programme participants:
“Thank you for the training. I would like to bring my family to the sessions next time.”
“The training has really changed the way I see money; there’s a lot I hope to implement. Thank you so much.” – Angelique Vernon
“Thank you for the opportunity to learn something new. I will be drawing up my budget.” – Aisha Turoune
“The trainer was very motivational, and she engaged us at an individual level to make sure we were comfortable with the content.” – Zanele Kwetana
“I learned the importance of funeral cover in the event something happens to me or my loved ones.” – Hlumelo Baba
In a remarkably short time, Avo and Aluwani have positively impacted the lives of hundreds of individuals. It is both a privilege and a pleasure to engage in this meaningful work, and we extend our heartfelt thanks to Aluwani for their invaluable contribution. We firmly believe that financial literacy is the key to unlocking economic participation, fostering active citizenship, and promoting wealth creation. By reaching and educating consumers on financial matters before they make life-altering decisions, we can substantially improve their lives.
To be a part of this impact and contribute to positive change for community members, their families, and the organisations they belong to, please connect with us at firstname.lastname@example.org.