Old Mutual calls on financial services industry to step up

Old Mutual calls on financial services industry to step up its role in accelerating economic transformation of SA

Following the significant progress made by many financial services companies in reaching the financial sector charters (FSC) 'internal' transformation targets, it is time for the industry to focus its attention on the role it must play in accelerating economic transformation in South Africa.

That is the view of Paul Hanratty, MD of Old Mutual South Africa, who says that because of its unique position, the financial services sector has a responsibility to drive the country forward economically and socially.

"While several initiatives are already underway, the industry must continuously seek innovative ways to tackle areas such as skills development, empowerment financing, infrastructure development and access to financial services. 

"From an Old Mutual perspective, with our internal initiatives such as employment equity, ownership and skills development well on track, the group is set to leverage its stature to play a vital role in the countrys economic empowerment."

He says the group's funding of BEE deals and investments in infrastructure have already given it a head-start in this regard. "We are close to the maximum FSC score for BEE transaction funding and we have over R5bn invested in local infrastructure."

Earlier this year, the Development Bank of Southern Africa (DBSA) and Old Mutual announced the launch of the Hluma Development Local Investment Agency (Hluma) - a multi million Rand Local Investment Agency - aimed at facilitating investment projects in marginalised areas with economic potential.

As a demonstration of their commitment to this initiative, the two organisations committed R250 million each over the next five years to projects that will be identified by Hluma during this time period.

Along with subsidiaries Nedbank and Mutual & Federal, Old Mutual is also working closely with provincial and local government to address infrastructure, skills and financing needs of various municipalities.

Hanratty comments that skills development is an area in which financial services companies can play a huge role. "For example, Old Mutual, through the Old Mutual Business School, is involved in a programme to fast track project management skills in the public sector. This is in support of the governments economic growth plan, the Accelerated and Shared Growth Initiative for South Africa (ASGI-SA) and particularly, the Joint Initiative on Priority Skills Acquisition (JIPSA)." 

"We also have other groundbreaking initiatives planned for next year, which we believe will play a big role in addressing the skills shortages in South Africa."

Hanratty says that despite these achievements, there is still a long way to go. "The group is working hard to improve in crucial areas such as providing access to financial services and improving the nations savings."

In this regard, Old Mutual is working closely with its Black Business Partners (BBPs), Wiphold and Brimstone, to find solutions to these challenges. "During 2006, together with Wiphold we participated in a number of Imbizos in rural areas around the country to ascertain the financial needs of people in these areas. We have taken these lessons on board in our thinking around products and distribution as well as our approach to consumer education initiatives.

"I am confident that together with our BBP's, we will be successful in meeting the remaining challenges."