Only 15% of Angola and Somalia’s populations are financially literate – one of the lowest statistics in the world.
Standard & Poor’s Ratings Services Global Financial Literacy Survey – which tested four basic financial concepts: numeracy; interest compounding; inflation and risk diversification – shows that without an understanding of these notions, people are not well equipped to make decisions related to managing their finances. According to a Business Tech report, this can negatively effect the population’s financial choices regarding saving, investing and borrowing.
At 52%, Botswana has the highest rate of financial literacy in sub-Saharan Africa, which is higher than the global average of 33% of adults who are money smart. Furthermore, South Africa’s 42%, while low, is ahead of its BRICS counterparts.
