Old Mutual, NEPAD Business Foundation invest in Africa

Old Mutual has sponsored R1.5 million to the NEPAD Business Foundation (NBF) and is one of the NBF's main founding partners. Old Mutual operates in six countries in Africa including, South Africa, Namibia, Kenya, Malawi, Swaziland and Zimbabwe and is headquartered and domiciled in London, UK.

“In line with our strategic objectives, Old Mutual continues to be a socially responsible organisation, committed to investing in the success of the countries where we operate. We recognise the NBF's objective to utilise all of Africa's resources to generate innovative economic growth in order 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 and this is another example of collaboration with a key partner in order to achieve a wider objective than mere bottom line results,” says Johannes Gawaxab, managing director of Old Mutual Africa Operations.

Old Mutual has a decentralised management structure, which enables the respective country heads to get on with the business. In addition to the six African countries that the company currently operates in, Old Mutual plans to continue to expand selectively and opportunistically.

The company consideres Africa a highly attractive area for future growth, as:

GDP growth in Africa is growing rapidly, ahead of world GDP growth
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
There is a large young population that has a demonstrated need for the savings and investment products they offer.

Old Mutual believes NBF can add value to its Africa strategy as the NBF is committed to proactively drive economic growth and contribute to developing a sustainable market in Africa for Old Mutual to penetrate and partner with. In addition to their involvement with the NBF, Old Mutual has entered into numerous partnerships, such as their Black Economic Empowerment transactions with key organisations in Namibia and South Africa.