As South Africa marks Women’s Month this August — a time to celebrate the achievements and rights of women — it is crucial to also acknowledge the heavy toll that gender-based violence (GBV) takes on women and the economy. While the nation grapples with the immediate horrors of violence against women and girls, the economic crisis that reverberates through every facet of society remains a story less often told.
As South Africa confronts this scourge, it is increasingly evident that financial empowerment could serve as a potent weapon in the fight against GBV. GBV encompasses a wide range of offences against individuals, including women, children, men and members of the LGBTQ+ community. However, the most prevalent form is violence inflicted by men on women and girls, a reflection of the unequal distribution of power in society.
The statistics are staggering: according to the South African Police Service, 11 women were murdered daily in 2023, positioning South Africa among the countries with the highest rates of GBV. The economic consequences of GBV are most evident in health-care costs. Victims frequently require medical treatment, counselling and long-term rehabilitation. These resources, which could otherwise bolster developmental projects or educational initiatives, are diverted to address the aftermath of violence.
Beyond health care, the economic impact of GBV extends to lost productivity. Women who experience violence often find themselves unable to work due to physical injuries or psychological trauma. This absenteeism affects not only the individual but also businesses and the broader economy. Companies face diminished productivity, higher employee turnover and increased costs associated with recruiting and training new employees. For an economy such as South Africa’s, already grappling with high unemployment and sluggish growth, the loss of productive labour exacerbates existing economic challenges.
The economic dependency that often accompanies GBV traps women in abusive relationships, perpetuating a cycle of poverty and violence that is difficult to break. A Unicef report from 2020 highlights the associated second-generation costs of GBV, as children who witness violence are more likely to engage in delinquent behaviour and criminal activity in adulthood.
A 2014 study by KPMG calculates the price tag of GBV, estimating that it costs victims, the government, businesses and civil society between R28.4bn and R42.4bn a year, equivalent to 0.9%-1.3% of GDP annually. These costs are particularly pronounced during economic downturns, complicating recovery efforts.
Earnings can decline by as much as 35% for women who experience violence over their lifetimes
Addressing GBV requires more than legal and social interventions; it demands an economic approach that empowers women. Gender discrimination and lower socioeconomic status limit women’s options and resources to escape abusive situations. Financial independence is crucial for enabling women to assert their rights. Yet, in South Africa, economic inequality remains a significant barrier to such independence.
The KPMG report further illustrates the link between violence and economic outcomes, revealing that earnings can decline by as much as 35% for women who experience violence over their lifetimes. This financial strain may force them into exploitative work, trapping them in a cycle of dependence.
In 2021, the International Monetary Fund noted that if Sub-Saharan African countries could reduce GBV to the global average of 23% of women experiencing abuse, it could yield long-term GDP gains of about 30%. Such improvements would also have a positive impact on government finances through increased tax revenues and a reduced financial burden on public systems.
Empowering women
One of the most effective strategies to combat GBV is through financial empowerment, particularly by encouraging savings and budgeting. Studies by the University of Cambridge in 2019 found that women are more likely to save regularly and manage household budgets effectively, contributing to more stable financial outcomes for families. By equipping women with the tools and knowledge to manage their finances, society can lay the groundwork for economic independence.
Savings programmes targeted at women, especially in rural and low-income areas, could play a pivotal role in reducing GBV. Microfinance initiatives, savings groups and community banking models have proved successful in developing countries, providing women with access to financial resources and communal support. An effective example of this approach is seen in the village savings and loan associations implemented by SaveAct, focusing on rural women in South Africa. Such programmes highlight a promising pathway for improving financial literacy and economic resilience among vulnerable populations.
Despite South Africa’s robust legal framework aimed at combating GBV, the prevalence of violence remains alarmingly high. This paradox can be attributed to weak law enforcement and a complex interplay of cultural, social and systemic factors that undermine the effectiveness of these laws.
Eliminating GBV is not only a social imperative; it also presents a significant opportunity for economic growth. By strengthening law enforcement, promoting cultural change, empowering women economically, improving access to support services and involving communities, South Africa can take significant strides towards reducing violence and advancing social equity.
* Packirisamy is chief economist at Momentum Investments Group
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.