Creating shared value and sustainable transformation is at the core of how we do business at Old Mutual. We recognise that the success of our business is integrally linked to the wellbeing of the communities we form part of and operate in. We remain committed to driving positive change in practical and impactful ways that can transform the economy and create opportunities to truly empower and uplift ordinary South Africans.
In a demonstration of this commitment Old Mutual launched its transformative Broad-Based Black Economic Empowerment (B-BBEE) ownership transaction, aptly named Old Mutual Bula Tsela (pave the way in Sesotho) in 2022. The R2.8 billion B-BBEE Old Mutual Bula Tsela transaction entailed an issue of 205.3 million new Old Mutual Limited shares for the benefit of the community; employees and members of the public.
Bula Tsela recipients can be divided into three recipient groups:
- Retail Scheme which benefits Black South African individuals and groups – 63.6 million shares allocated.
- Community Trust Scheme for eligible Black South African community members – 63.6 million shares allocated
- Employee Scheme designed for Old Mutual employees – 78.1 million shares allocated.
This demonstration of our commitment to empowerment has resulted in an estimated 4% increase in the Black shareholding in Old Mutual, bringing the total shareholding to over 30%. We are also proudly the first financial services provider in South Africa to facilitate an offer of shares directly to the Black South African public, including lower-income earners.
The scheme is running for a ten-year period and reflects Old Mutual’s commitment to real and tangible transformation, underpinned by a belief that real transformation is necessary to sustain business growth and serve the best interests of all South Africans.
The Retail Scheme has declared a dividend each year since inception. To further enhance the opportunities and understanding of the retail scheme, financial education roadshows specifically tailored for Bula Tsela shareholders are conducted throughout the year.
Learn more about Bula Tsela
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We've answered some questions you might have about the retail scheme and your shares.
- As a responsible business, Old Mutual remains committed to supporting the Transformation agenda domestically and in the countries in which we operate on the African continent.
- We are embedding the principles of economic ownership transformation into our DNA.
- We are ensuring that our empowerment activities add value and contribute sustainably to the transformation agenda of our organisation and our society.
- Good corporate citizenship obliges us to do more to help improve financial inclusion. It is in all our interests that we work harder to broaden and diversify our economy by providing more opportunities for more people. Transformation should therefore not be a buzzword, or tick-box exercise, but needs to permeate everything we do.
- This scheme builds on the immense successes Old Mutual is achieving in driving broad-based transformation. Old Mutual Bula Tsela now adds and accelerates the changes we are making to drive transformation. It adds to initiatives like:
- The Imfundo Trust, Old Mutual Investment Group scholarship initiative that aims to provide funding for students with a particular interest in the investments industry thereby supporting its transformation.
- The Education Trust, which was a legacy from our 2005 B-BBEE deal, drives education bursaries for children of union member partners and they can study anything they want to (it is not industry specific). This programme is doing very good work to pay for hundreds of children to go through tertiary education or higher-level education.
- The community component is another significant way we are transforming communities, that already benefit from our informal housing and businesses through our Masisizane Fund, which provides customised funding solutions either for asset finance, working capital or both.
- We are continuing to find new ways to drive tangible change and greater financial inclusion. For instance, our Black Distributors Trust is aimed at providing millions of Rands annually in financing to qualified Black financial advisors, who are starting out in business.
- This deal is a major milestone in SA’s B-BBEE history - Old Mutual is the first insurer in South Africa to offer shares to the Black South African public (through a retail scheme) and is the first in the country to include those who may have previously been excluded from these opportunities.
- While Old Mutual already has many products promoting a savings culture, Old Mutual Bula Tsela does something difficult to do in the current JSE listed space – providing shares at a reduced price to people who do not normally get to own shares. Our broad-based share ownership scheme – directly to staff and indirectly to retail investors – is putting ownership directly in the hands of poorer Black South Africans and thereby broadening SA’s economy and improving the lives of ordinary people today, and for future generations.
- Our scheme is very broad to achieve maximum reach – it is tailored for employees, the Black South African public as well as women and small businesses serving South Africa’s communities.
- Applicants were notified if they have been successful in applying for Retail Scheme Company shares.
- Unsuccessful applicants were refunded any cash paid, subject to FICA and scheme rules. If you are owed a refund, please contact Singular at 011 321 5400
- For further information, please contact Singular Financial Services:
- Website: https://www.singularfs.co.za/
- Email: helpdesk@singular.co.za
- Telephone: 011 321 5400
Please contact Singular Financial Services:
- Website: https://www.singularfs.co.za/
- Email: bulatsela@singular.co.za
- Telephone: 087 015 0395
Please contact Singular Financial Services:
- Website: https://www.singularfs.co.za/
- Email: bulatsela@singular.co.za
- Telephone: 087 015 0395
