BUSINESS NEWS - As South Africa moves from commemorating the courage of the young people of 16 June 1976 to celebrating Mandela Month, the National Financial Ombud (NFO) believes there is a powerful connection between these defining moments in our nation’s history: both challenge us to create a South Africa in which every person has the opportunity not only to be free, but to thrive.

This year’s Mandela Day theme, “It’s still in our hands to combat poverty and inequity”, reminds us that tackling inequality requires more than good intentions. It requires practical action that equips people, particularly young people, with the knowledge, confidence and opportunities to build financially secure futures.

Nearly five decades after the Soweto Uprising, one of the greatest barriers facing South Africa’s youth is no longer access to education alone, but access to meaningful economic participation. 

With approximately 59.9% of economically active young people aged 15 to 24 unemployed in 2025, many young South Africans face an uncertain financial future at precisely the time they are making some of the most important financial decisions of their lives.

Whether applying for student funding, opening a bank account, purchasing a first vehicle, accepting a retail account, accessing credit to start a business or managing digital financial products, today’s young consumers are navigating an increasingly sophisticated financial landscape. 

These opportunities can unlock economic mobility but only when accompanied by financial knowledge, informed decision-making and effective consumer protection.

The NFO believes that financial capability is one of the most powerful tools available to combat poverty, reduce inequality and expand economic participation.

Financial literacy is not simply about understanding money; it is about empowering people to recognise their rights, understand their responsibilities, identify financial risks, avoid unnecessary debt and make informed decisions that improve their long-term financial wellbeing. It also ensures that consumers know where to turn when they require independent, impartial assistance in resolving disputes with financial institutions.

Commenting on the significance of Youth Month and Mandela Month, Nerosha Maseti, Lead Ombud of the Banking and Credit Division, said: “The courage shown by the youth of 1976 secured opportunities that previous generations could only dream of. Nelson Mandela dedicated his life to building a society founded on dignity, equality and justice. 

"Our responsibility today is to ensure that young South Africans have the capability to turn those opportunities into lasting prosperity.

“Financial literacy is not a luxury. It is a foundation for economic freedom. It protects young consumers from financial vulnerability, empowers them to make informed decisions and gives them the confidence to participate meaningfully in the economy. Financial inclusion opens doors, but financial capability enables people to walk through them with confidence.

“Every young South African deserves to participate in the financial system knowing that they have rights, that they have responsibilities, and that an independent Ombud exists to ensure they are treated fairly.”

International evidence reinforces this message. The OECD’s 2024 research found that although most young people already engage with financial products and services, many still lack the financial literacy needed to navigate increasingly complex financial environments confidently.

Recognising this challenge, the NFO has significantly expanded its financial literacy and consumer education programmes through partnerships with universities, community organisations and industry stakeholders.

These initiatives are coordinated through the Office of the Executive Head: Stakeholder Engagement and Communications, led by Priya Rajah, whose team continues to strengthen consumer awareness by bringing practical financial education directly into communities, educational institutions and public engagement platforms across South Africa.

Rajah said: “Financial literacy is one of the greatest investments we can make in South Africa’s future. Every young person who learns how to budget, borrow responsibly, understand a credit agreement or recognise their consumer rights becomes better equipped to build financial security for themselves and future generations.”

“Mandela taught us that overcoming poverty is not an act of charity but an act of justice. Financial education gives practical expression to that principle because knowledge empowers people to create opportunities, exercise informed choice and participate fully in the economy.”

The Banking and Credit Division encourages young consumers to take ownership of their financial futures by:

• Understanding financial agreements before signing them.
• Borrowing only what they can comfortably afford to repay.
• Monitoring their credit records regularly.
• Seeking assistance as soon as financial difficulties arise.
• Learning about their rights and responsibilities as financial consumers.
• Making use of independent dispute resolution mechanisms whenever disputes cannot be resolved directly with a financial institution.

The NFO also calls on educators, parents, employers, financial institutions, policymakers and civil society organisations to continue investing in financial education. Building a financially capable generation is not the responsibility of one institution, it is a shared national responsibility.

As South Africans prepare to dedicate 67 minutes of service on Mandela Day, the NFO encourages organisations to consider financial education as a meaningful contribution towards combating poverty and inequality. 

Equipping a young person with the knowledge to make informed financial decisions may be one of the most enduring investments we can make in building a more inclusive and prosperous South Africa.

The National Financial Ombud remains committed to promoting fairness, resolving disputes free of charge, advancing financial capability and strengthening public confidence to the financial industry through an accessible, independent and impartial dispute resolution framework.

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