Old Mutual donates R5m to Women’s Development Bank

- Leading investment and savings group Old Mutual (SA) today announced a donation of R5m to Women’s Development Bank (WDB) Microfinance - an NGO whose principal business is the provision of credit and development resources to women in business.

The announcement marks the fourth 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 the purpose of contributing powerfully to the economic transformation of South Africa.

Rojie Kisten, who is responsible for the implementation of the Masisizane initiative at Old Mutual, said the objective of the donation is to enable WDB to roll out its micro-finance model in KwaZulu-Natal.

“It is acknowledged that WDB has the experience and expertise to alleviate poverty through micro enterprise lending. Masisizane is engaging WDB because of its acknowledged expertise and its presence in KwaZulu-Natal,” she explained.

The beneficiaries of the donation are women in rural KwaZulu-Natal and Old Mutual will provide them with free financial education, while WDB will provide training on how to run a business, business support and mentorship, and encourage them to open savings accounts.

According to Kisten, the type of enterprises that would be supported are mainly small-scale farming, poultry, vegetable gardens, sewing and baking businesses.

In terms of the agreement between Old Mutual and WDB, credit will be provided to:

• Groups each consisting of five women for poverty alleviation and the funds range from R300 to R4000 per woman;
• Individual entrepreneurs with loans ranging from R4,000 to R10,000 offered to select recipient clients; and
• Loan repayment periods range from four to nine months.

“WDB is delighted to be part of the Masisizane initiative. The initiative came at the right time when WDB is on its expansion path and the funds will add to more outreach. The funds will also add to the positive impact on lives of poor families, women in particular” says Ben Nkuna, programme manager for WBD.