Old Mutual still yet to comply with indigenisation policy

Roberta Katunga, Senior Business Reporter
INSURANCE giant Old Mutual Zimbabwe is still yet to fully comply with the country’s indigenisation legislation although they have submitted a ‘‘credible’’ indigenisation plan to the Ministry of Finance.

The legislation requires foreign owned companies to ensure that 51 percent of their shares are owned by indigenous Zimbabweans.

Chief executive Officer Mr John Mushosho said the company had an ongoing dialogue with the relevant stakeholders as part of the process of fully complying with the law.

“We are optimistic that we will reach an amicable position in the near future. We would like to assure all our stakeholders that we will fully comply with the local laws and regulations in Zimbabwe as we do in all the jurisdictions in which we operate,” said Mr Mushosho.

In the first phase of its indigenisation plan, Old Mutual Zimbabwe, in 2011, transferred 25 percent of its shareholding to indigenous groups in a broad-based plan which saw client pensioners getting 10 percent, staff nine percent while 2,5 percent was given to the Kurera/Ukondla Youth Fund and Indigenous strategic partners 3,5 percent.

Financial institutions are set to get up to 31 percent indigenisation credit if they submit to certain conditions laid out by the Finance Ministry that include supporting the agriculture sector and giving out loans to the youth.

Efforts to get a comment from the National Indigenisation Economic Empowerment Board were fruitless although it was established that companies were still submitting applications with a source from the Zimbabwe Investment Authority confirming that the numbers had been increasing.

Speaking on treasury bills and bonds, Mr Mushosho said it was normal for Governments to raise money for projects through treasury bills although he said there was need for more information.

“We however, think there is need for more information about these treasury bills to be made available to the investors including ourselves. Yes, the Old Mutual group holds some Treasury Bills because we believe the private sector has a role to play in public sector developmental initiatives through lending support,” he said.

Meanwhile, he revealed that there had been a slow uptake of the Budiriro houses.

Mr Mushosho said over 600 houses had been sold out of the 2 797 units.

“In response to the slow uptake, we have relaxed mortgage conditions for that scheme, by reducing the deposit from 25 percent to 10 percent to make the houses more accessible to the low income sector,” he said adding that beneficiaries have up to 20 years to service their mortgages.