Old Mutual injects N$35m into economy

OLD Mutual yesterday announced it would invest N$35 million in projects aimed at improving the economic growth of the country.

The money will be channelled into SME development, skills development, financial education and also enhancing savings and funeral policies of low-income earners. Old Mutual Africa Operations Managing Director, Johannes !Gawaxab explained during a presentation to the media that the N$35 million would come from its unclaimed share trust (UST) fund, which was borne after some policyholders failed to claim their free shares following the Group’s demutualisation in 1999.From this fund, N$10,5 million will go into skills, SME and consumer financial education development, N$14,5 million to enhance values of certain policy categories, while the remaining N$10 million will be held back by the company for an additional three years for possible valid claims from policyholders.The implementation of this investment process is scheduled to start in September.!Gawaxab said before reaching a decision on how to invest the money, consultations had been with the relevant stakeholders including Government leaders.”As Namibia’s leading financial services company it remains Old Mutual’s strategic objective to meaningfully contribute to economic transformation and development in our country.”Investment in these initiatives with the surplus UST funds is tangible demonstration of Old Mutual’s commitment to this objective,” said !Gawaxab.He said the same ‘ploughing back’ process by the company, was also being undertaken in South Africa, Zimbabwe, Malawi and Kenya.However, project and sector beneficiaries would depend on the requirements of each individual country.In total, the demutualisation of Old Mutual – apart from individual shareholders – has led to an investment into the Namibian economy of N$44 million, of which N$9 million was paid as tax levy to the Government.The UST Fund was set up so that all untraceable shares would fall back to the holding company.Old Mutual Africa Operations Managing Director, Johannes !Gawaxab explained during a presentation to the media that the N$35 million would come from its unclaimed share trust (UST) fund, which was borne after some policyholders failed to claim their free shares following the Group’s demutualisation in 1999.From this fund, N$10,5 million will go into skills, SME and consumer financial education development, N$14,5 million to enhance values of certain policy categories, while the remaining N$10 million will be held back by the company for an additional three years for possible valid claims from policyholders.The implementation of this investment process is scheduled to start in September.!Gawaxab said before reaching a decision on how to invest the money, consultations had been with the relevant stakeholders including Government leaders.”As Namibia’s leading financial services company it remains Old Mutual’s strategic objective to meaningfully contribute to economic transformation and development in our country.”Investment in these initiatives with the surplus UST funds is tangible demonstration of Old Mutual’s commitment to this objective,” said !Gawaxab.He said the same ‘ploughing back’ process by the company, was also being undertaken in South Africa, Zimbabwe, Malawi and Kenya.However, project and sector beneficiaries would depend on the requirements of each individual country.In total, the demutualisation of Old Mutual – apart from individual shareholders – has led to an investment into the Namibian economy of N$44 million, of which N$9 million was paid as tax levy to the Government.The UST Fund was set up so that all untraceable shares would fall back to the holding company.