“Critically low rate of national savings – one of the biggest issues facing the South African economy”, Chairman Liberty
“Critically low rate of national savings – one of the biggest issues facing the South African economy”, Saki Macozoma, Chairman Liberty Group
Liberty Group’s annual report has just been published. Saki Macozoma, Chairman of Liberty Group Limited, comments below on the performance of the Group in the year under review and the issue of South Africa’s low rate of savings.
Overall performance
2007 was a significant year in Liberty Group Limited’s history. Firstly, it marked the group’s 50th anniversary. Secondly, as a fitting tribute to this anniversary, the group delivered an excellent set of results, with record earnings from our core insurance operations and all key indicators reflecting a solid operational performance. STANLIB, our asset manager, delivered outstanding investment performance and received the 2007 Raging Bull award for the best domestic unit trust manager in South Africa.
Facing the challenge of South Africa’s low rate of savings
One of the biggest issues facing the South African economy is the critically low rate of national savings. The group is fully supportive of the government’s efforts to encourage a savings culture among South Africans. It is committed to playing a leading role in collectively finding solutions to the challenges of improving the cost effectiveness and consumer protection provided by contractual savings products and influencing the reshaping of the life assurance industry with National Treasury, the Financial Services Board and the Life Offices Association of South Africa.
Outlook
South Africa’s economy is slowing after robust sustained growth over the past few years. During 2007, economic growth was relatively broad-based with almost all sectors of the economy making a positive contribution. Recent global and local developments suggest that 2008 will be a more challenging year for the group, but we believe that the business is well positioned to manage any slowdown in the economy.
The foundations for the future have been well laid and I am confident that our strong leadership team, under chief executive Bruce Hemphill, will take us into the future as responsible corporate citizens of South Africa, answering to the demands of all our shareholders.
