Old Mutual complies

Bank had its indigenisation proposal rejected on the grounds that it fell short of requirements.
According to the agreement signed between Old Mutual and the Ministry of Youth Development, Indigenisation and Economic Empowerment, the largest insurer will release a grant to pensioners equivalent to 10 percent of the company.

Employees will also receive free nine percent of Old Mutual shareholding.
The group has also allocated 3,5 percent that can be acquired, on a commercial basis, by strategic local partners.
A grant to the Youth Development Fund equivalent to 2,5 percent and valued at US$10 million and an additional US$1 million will be made available from the Old Mutual Fund.

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The fund, to be disbursed through CABS, will be jointly administered by the ministry and Old Mutual. Every province will benefit from the US$11 million fund.
Government will continue engaging Old Mutual on how it intends to localise the remaining 26 percent. Under the laws, foreign-owned firms are compelled to localise at least 51 percent ownership to indigenous Zimbabweans.

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Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said it was encouraging that foreign-owned companies were beginning to comply.
“When companies start complying, like Old Mutual, it is very encouraging,” he said.
“In terms of the five-year horizon (that companies were given to comply two years ago), they are on course. We will review the progress at the end of November and also discuss the remaining 26 percent.”

Old Mutual has also committed itself to set up a fund to support agriculture through the framework of the National Indigenisation policy and legislation.
A US$15 million fund has been set to raise finance for the construction of 1 500 houses in Budiriro, a high-density suburb in Harare in addition to participating in a US$40 million National Housing Fund.
Furthermore, there would be a US$20 million liquidity fund to support the private sector and disbursed through CABS. Old Mutual has also committed itself to support the development of infrastructure.

Old Mutual chief executive Mr Ralph Mapita said it was in the best interests of the group to comply with the country’s empowerment laws.
“Old Mutual has been operating in Zimbabwe since 1902 and it is important that people in areas in which we operate are successful,” he said. “We are fully behind supporting Zimbabwe.
Minister Kasukuwere rejected the indigenisation proposal by Standard Chartered Bank. The bank had proposed to release only 10 percent to locals, including its employees.
Minister Kasukuwere yesterday met the Standard Chartered chief executive (Africa Region) Ms Diana Layfield.