Implementing broad-based black economic empowerment

In 1999/2000, Old Mutual (SA) developed its “10-Point Framework for Black Economic Empowerment”, a framework that described how the company would implement empowerment throughout its own operations. In so doing, Old Mutual (SA) aimed to support transformation and economic growth in South Africa by implementing broad-based black economic empowerment. The Framework focused on:

  • Broadening black ownership and control of the economy;
     
  • Making the Old Mutual Board of Directors more representative of the national demography;
     
  • Changing the Old Mutual (SA) employee profile also to become more representative of the national demography;
     
  • Focusing on changing the Old Mutual (SA) client base to become more inclusive of all the people of South Africa;
     
  • Making black economic empowerment investments;
     
  • Creating and entering into black economic empowerment partnerships;
     
  • Developing relevant products and a service culture that was more inclusive of all South Africans;
     
  • Making infrastructural investments that stimulate economic growth;
     
  • Engaging in small business development and grassroots empowerment through a sustainable corporate social investment programme;
     
  • Placing skills development and education – both within Old Mutual (SA) and in society – high on the agenda.

The Framework formed the background to Old Mutual (SA)’s contribution to the drafting of the Financial Sector Charter (FSC). The signatories to the Charter described, after working on the drafting for almost two years, a number of principles that they believed would change the sector to become a powerhouse of growth and transformation. These were encapsulated in a scorecard to measure the progress of each institution and the sector. The scores captured on the scorecard would therefore be a demonstration of the organisation’s contribution to empowerment. According to the scorecard, organisations would score their progress against:

  • Their inclusion of a significant black shareholding and executive management in their organisations, thereby ensuring increased black control of South African financial services companies;
     
  • The creation of workforces that represent South African society;
     
  • Investments in South African infrastructure, low-cost housing, agriculture, black small and medium enterprises and empowerment transactions;
     
  • Supporting black businesses, and small- and medium-sized enterprises through targeted procurement and enterprise development strategies;
     
  • Enabling South Africans who were previously unable to enjoy financial services to enter the mainstream economy by developing products that are affordable, accessible and relevant;
     
  • Making direct investments in community developmental programmes and projects;
     
  • Investing in skills development and education to create the critical skills necessary to support economic development; and
     
  • Creating non-discriminatory workplaces that embrace diversity.

The key principles of both the 10-Point Framework and the Charter are similar, which has ensured that Old Mutual (SA) has developed its black economic empowerment strategies and programmes and seen them mature over a significant period.

The Charter and the 10-Point Framework already enjoy significant alignment with the Codes of Good Practice developed by the Department of Trade and Industry (dti). This means that Old Mutual (SA) is well placed to meet the requirements of each benchmark of best practice regarding black economic empowerment.


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During the year more than R140 million made up of some 23 000 invoices was paid to black small- and medium-sized enterprises (SMEs). To assist these suppliers with their cash-flow requirements, Old Mutual (SA) endeavoured to pay them within 14 days.
From left to right: Marius Meiring, Heidi Kincaid, Brian Wilkinson and Mughtar Parker who lead the procurement and enterprise development team.