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Economy
Sunday, February 1, 2009
Remote development

Old Mutual says it has sponsored R1.5million to the NEPAD Business Foundation (NBF), of which it is one of the founding partners.

“In line with our strategic objectives, Old Mutual remains committed to investing in the success of the countries where we operate,” explains Johannes Gawaxab, Managing Director of Old Mutual Africa Operations.
“We recognise the NBF’s objective to utilise all of Africa’s resources to generate innovative economic growth to stimulate socio-political stability and sustainable development. In support of our commitment to economic transformation, Old Mutual also remains a firm believer in establishing and maintaining partnerships.”
The company operates in six countries in Africa: South Africa, Namibia, Kenya, Malawi, Swaziland and Zimbabwe. Its domicile (and there its headquarters) is, however, now in London.
The company has a decentralised management structure, which enables the respective country heads to get on with business. Old Mutual’s vision for Africa is to dominate financial services, enrich the lives of their employees and customers and enhance stakeholder value by providing best-value financial services. It strives to achieve this objective by optimising its current operations and expanding opportunistically throughout countries in Africa.This includes increasing Old Mutual’s reach and access to customers, as well as investing in and the developing of its staff. In addition to the six African countries in which the company currently operates, Old Mutual plans to continue to expand selectively and opportunistically to ensure that it provides the best possible value to staff, clients and shareholders. Most importantly, it has positioned its organisation to make tangible and sustainable contributions to the continent’s long-term economic success.
Old Mutual considers Africa a highly attractive area for future growth for the following reasons:
GDP growth in Africa is growing rapidly, ahead of the global average;
Foreign Direct investments have increased significantly and appear set to continue to do so;
Current penetration rates in the financial sector are low (particularly insurance);
Premium growth over the past three years has been phenomenal; and,
There is a large young population that has a demonstrable need for the savings and investment products.
Old Mutual is confident that the NBF can add value to its Africa strategy, being committed to supporting economic growth and the development of a sustainable market in Africa for the group. In addition to its involvement with the NBF, Old Mutual has entered into numerous partnerships, such as various Black Economic Empowerment transactions with key organisations in Namibia and South Africa.
Gawaxab adds, “These deals reflect our quest to become leaders in corporate transformation, as well as our commitment to matching the demographic profile of our markets. We have also partnered with Old Mutual South Africa’s sister company, Nedbank, to ensure that we are in a position to offer our clients access to a comprehensive range of financial services and products.”

Note
The NEPAD Business Foundation (NBF) is endorsed by the NEPAD Secretariat and represents companies seeking an opportunity to explore networking and business development in Africa and sub-saharan Africa. The NBF encourages business development in the 16 industry sectors in which it operates and hosts regular cross-sector meetings to facilitate trade between all realms of business. The organisation aims to bring about continual skills and infrastructural development through flagship programmes such as the educational programme, and the African Leadership Programme (ALP). The NBF’s Business Guide, launched at the 2007 Africa World Economic Forum and the NBF’s Project Management Office are two key drivers that help deliver the NBF’s overall objectives by facilitating platforms to encourage trade and development at a regional, continental and global level.

Copyright © Insurance Times and Investments® Vol:22.2 1st February, 2009
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