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South Africa: Swaziland Grants Old Mutual a Licence to Operate
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Business Day (Johannesburg)
18 April 2008
Posted to the web 18 April 2008
Regis Nyamakanga
Manzini
Old Mutual had been granted a licence to operate in Swaziland, bringing to two the number of South African life companies operating in the kingdom, with a retirement fund market estimated at R11bn , Swazi Prime Minister Themba Dlamini said yesterday.
This brings to six the number of African countries where Old Mutual (OML) operates, including home base SA, Malawi, Namibia, Kenya and Zimbabwe. The company had also opened a representative office in Angola , Old Mutual's MD for African operations, Johannes !Gawaxab, said.
Old Mutual Swaziland was expected to start operating next month alongside state-owned Swazi Royal Insurance Corporation and South African life company Metropolitan, !Gawaxab said.
Old Mutual was already in talks with three Swazi companies vying to acquire a 25% stake in its Swazi unit in line with the country's legislation that requires foreign companies operating to partner locals.
Old Mutual has been operating in the Swaziland market from SA for years, but !Gawaxab said the company had decided to establish a fully fledged business to tap into Swaziland's potential market of 48000 individuals.
Nicolette Hendricks is MD of Old Mutual Swaziland and the company has seconded a core of 10 South African staff members to train and develop local staff.
Old Mutual invested about R50m in setting up its Swazi operation, where it had more than 6000 individuals on its life book, Hendricks said.
"Old Mutual's contribution to the Swazi economy will include ploughing back a portion of income from the Swazi operation into infrastructure development . A quarter of the revenue from client premiums in Swaziland will be reinvested to help finance projects such as Swaziland's first hospital and a dam to meet the country's water needs," she said.
Dlamini said Old Mutual was the largest savings and investment company in Swaziland , and urged the company to consider listing on the Swazi Stock Exchange to help spur activity on the country's bourse.
Old Mutual is listed on the JSE, and on the Zimbabwe and London stock exchanges.
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SA's second-largest life company Sanlam is also selling life policies in Swaziland from its Cape Town base, but was expected to also acquire a licence soon, ahead of opening a fully fledged operation in the country.
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