Old Mutual and Umsobomvu launch R200m Women’s Fund
Deputy President Phumzile Mlambo-Ngcuka today commended Old Mutual’s Masisizane Fund and Umsobomvu Youth Fund for creating a R200m development finance fund aimed at supporting the development of women-owned enterprises.
The fund - Masisizane Women’s Enterprise Fund – marks the third partnership that Old Mutual’s Masisizane Fund has entered into with like-minded organisations that share its vision and passion for poverty alleviation through job creation and the economic empowerment of women.
The Masisizane Fund is a Section 21 company that was created following the closure of the Old Mutual Unclaimed Shares Trust with a purpose of contributing powerfully to the economic transformation of South Africa.
The target market for the Masisizane Women’s Enterprise Fund is women-owned close corporations and companies in peri-urban and poor areas (but not limited therein) that have an annual turnover of less than R5m, have been operating for five years or less and have an economically viable business. The size of the loans to women-owned enterprises will range from R100 000 to R5m.
Mlambo-Ngcuka congratulated Umsobomvu and Old Mutual for having the foresight to establish a fund of this nature.
“The focus on women will ensure that women play their rightful role in the country as responsible citizens. Furthermore this fund is about grooming young women in South Africa who won’t be looking for jobs but will be the creators of companies and employing others in their own businesses,” said Mlambo-Ngcuka.
“We have to address the inequalities in our society by going to where people are at a grassroots level in order to liberate our women –one woman at a time – while gathering momentum and building hundreds and thousands of seeds and flowers that must blossom.”
Paul Hanratty, Managing Director of Old Mutual (SA), said: “This initiative seeks to narrow the gap between the first and second economies.” As a custodian of the nation’s savings and investments, we believe that what is good for South Africa is good for Old Mutual.”
Rojie Kisten, who is responsible for the implementation of the Masisizane initiative at Old Mutual, said: “By partnering with Umsobomvu, we are creating a R200m fund for financing enterprises that empower women.”
Kisten explained that Old Mutual identified Umsobomvu as its preferred partner because the fund matched the financial services group rand-for-rand by contributing R100m to the fund while Masisizane contributed the other R100m.
“In addition,” said Kisten, “Umsobomvu has the national footprint and business support programmes, such as mentoring and technical skills capacity, that are prerequisite to ensuring the viability and sustainability of the enterprises that the fund will invest in.”
Old Mutual will also provide procurement opportunities for the entities that the combined fund will finance.
Malose Kekana, CEO of Umsobomvu Youth Fund, said the women’s fund would enhance Umsobomvu’s existing funding activities and allow for even greater impact.
“The confidence shown by Old Mutual in development funding, especially in the peri-urban and rural areas, is remarkable,” said Kekana.
He added that Umsobomvu’s Business Development Services Voucher Programme, Business Opportunities Support Services and the Mentorship Programme compliment funding of small enterprises. Old Mutual will provide the entrepreneurs with free financial education. This will allow for an all-encompassing funding product that goes a long way toward ensuring sustainable youth and women-owned enterprises.
“The advantage of funding women is that it avoids the distortion of family power relations, which is likely to be caused in an event where youth are empowered whilst their parents are not getting the same development support,” said Kekana.
