|
|
Like this article? PLEASE +1 it! |  |
|
Old Mutual (OM) Supports Expansion of Women’s Development Bank (WDB) Microfinance into KwaZulu-Natal, South Africa with USD 710,000
| Guest post by: David Satterthwaite |
Article Overview: Old Mutual (OM), the largest financial services provider in South Africa, recently released a press release announcing a donation of ZAR 5 million (USD 710,000) to the Women’s Development Bank (WDB) Microfinance, a South African non-governmental organization (NGO) that provides micro-loans and training for poor, rural women.
 |
Free Download - Ugandan Government to Set up Laws for Regulating its Microfinance Sector By David Satterthwaite |
Old Mutual (OM) Supports Expansion of Women’s Development Bank (WDB) Microfinance into KwaZulu-Natal, South Africa with USD 710,000
Old Mutual (OM), the largest financial services provider in South Africa, recently released a press release announcing a donation of ZAR 5 million (USD 710,000) to the Women’s Development Bank (WDB) Microfinance, a South African non-governmental organization (NGO) that provides micro-loans and training for poor, rural women.
The donation stems from OM’s Masisizane Fund, a nonprofit company created following the closure of OM’s Unclaimed Shares Trust, and represents the fourth partnership it has formed with like-minded organizations. Old Mutual has set aside ZAR 300 million (USD 42.7 million) of the Fund’s total ZAR 400 million (USD 57 million) exclusively for the development of women-owned enterprises.
The main purpose of the donation is to enable WDB to expand microfinance into rural KwaZulu-Natal, where Old Mutual will provide women with free financial education and WDB will provide them business training and support while encouraging them to open savings accounts. According to Rojie Kisten, director of the Masisizane initiative, supported enterprises will include small-scale farming, poultry, vegetable gardens, and sewing and baking businesses.
Per agreement between OM and WDB, loans of ZAR 300 to 4000 (USD 43 to 570) will be made to groups of five women, and individual loans ranging from ZAR 4000 to 10,000 (USD 570 1,424) to select clients, both with repayment periods of four to nine months.
Old Mutual has a history of more than 150 years as a South African mutual society prior to its public listing in 1999. Its international services and products include investment, insurance, asset management, banking, and healthcare, and are available to individuals, businesses, and corporations. According to its 2005 year-end financial report, OM had total assets of USD 160 billion, net profits of USD 2.2 billion, and basic earnings per share of USD .50. Old Mutual currently has operations in India, China, Western Europe, South America, United Kingdom, United States, and other parts of Africa. It is led by CEO Jim Sutclifee, CFO Jonathan Nicolls, and Managing Director of South Africa Paul Hanratty.
WDB began operations in 1991 as a small microfinance organization. The Group is currently comprised of WDB Microfinance (WDBMF), WDB Trust, and WDB Investment Holdings (WDBIH). WDBMF was established in 1992 and follows the Grameen Bank model of group lending. It offers two types of loan programs, namely the Livelihoods program, which targets the poorest of the poor (less than 50 percent of the South African poverty standard of ZAR 132 (USD 18.7) monthly per capita; and the Enterprise program, which enables women to advance from basic income generation to business operation. Since its inception, WDBMF has trained more than 12,000 women in financial and business education. Financial information and ratings are not available as WDB does not currently report to a third-party performance evaluator.
II. How Can MicroFinance Succeed In Africa?
6.0 References: Microfinance in Africa - Experience and Lessons from Selected African Countries
Introduction: Human Capital and Economic Development
Lonrho to Acquire 51% Stake and Control of Mozambican Microfinance Bank, Socremo Banco de Microfinancas
Comparison with other developing countries: Africa’s human development
|
About the Author: David Satterthwaite RSS for David's articles - Visit David's website Click here to visit David's website   Citi Foundation Creates $112m Program with SEEP Network to Strengthen Trade Associations South African Microfinance Institution MFI Blue Financial Services and Nigerias Intercontinental Bank to Launch $259m Microfinance Bank Kinnevik Invests $14m in African Microfinance Institution Bayport Financial Services International Finance Corporation IFC and Blue Financial Services Group to Integrate HIVAIDS Prevention with Microfinance Another Microfinance Institution MFI Closes in Uganda as Chaos Continues in the Sector |
Related Forum Posts
Re: need advice
- Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering.
MichelleJ
BDC
- [quote="IWDCanada":jib6tqt9]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:jib6tqt9]
On that note, does anybody have any experiences with the Business Development Bank of Canada that they would like to share? I have been considering approaching them for a business loan.
Re: Join an inventor's group
- [quote="ideasuniversity":1cd2fidx]Thanks for this list, will check out if we have this kind of Group in South Africa. I will be glad to be part of them since I am passionate about creating ideas and implementing them.[/quote:1cd2fidx]
I would also be very interested in knowing if there was such a group in South Africa, because I am
sure that some of the laws etc. surrounding patents might be a bit different here.
MichelleJ
Re: BDC
- [quote="Jones":255lkmrn][quote="IWDCanada":255lkmrn]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:255lkmrn]
On that note, does anybody have any experiences with the Business Development Bank of Canada that they would like to share? I have been considering approaching them for a business loan.[/quote:255lkmrn]
I'll be working with the BDC later this month on a few projects. From what i've been told they are really great when it comes to small business. Their loans have a little higher interest but their payment terms are a lot easier to swallow. I can give you a contact if you need.
Re: Newbie from Africa
- Hello Biiyke
Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa.
MichelleJ
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
10 Golden rules to survive the Global Crisis
Live To Work Or Work To Live?
A New Year in the Pharmaceutical Industry
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.