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Posted: 15 Feb 2016

Invest in Education

Why does Old Mutual invest in education?

Education makes sustainable economic growth and inclusive financial wellbeing possible. It plays a critical role in building and transforming societies, helping to reduce unemployment, poverty and inequality. Education is one of the fundamental drivers of long-term development of South Africa and the African continent.

Development, in turn, is integral to delivering successful long-term investment returns.

Put simply, people are a nation’s greatest asset, and education is the tool with which we create positive futures for individuals, communities, the country, the continent and the world at large. As Nelson Mandela said: ‘Education is the most powerful weapon which you can use to change the world.’

How does Old Mutual contribute to education in South Africa?

We contribute to education in various ways, ranging from infrastructure such as building schools, facilities and equipping educators, to providing scholarships and bursaries.

  • The Old Mutual Investment Group contributes to education infrastructure in line with the vision of the National Development Plan. The largest single contribution is the R1.2 billion Schools and Education Investment Impact Fund South Africa, which invests in affordable independent schools across South Africa. We provide bursaries to actuarial and accounting students, amounting to about R8 million.
  • Our Imfundo Trust, an Old Mutual Investment Group initiative, provides scholarships totalling about R5 million a year to tertiary students, focusing on developmental economics, finance, law and agriculture. Since its launch in 2011, 44 students have graduated and 36 more are working towards their degree.
  • We set up an Education Flagship fund a few years ago, which is investing R350 million over seven years towards improving high school maths and science education. The current shortage of mathematics and science skills is a major impediment to growth. These skills are central to the development of South Africa as a competitive player in the global market.
  • The Old Mutual Foundation supports initiatives that build excellence in mathematics and science at secondary school level. Over the last decade almost 200 disadvantaged students, studying in 12 different fields, have graduated with the support of the Old Mutual Education Trust. The Old Mutual Education Trust was set up as part of our big B-BBEE deal 10 years ago, to benefit the children of black trade union members.
  • We are also involved in the funding of affordable student residential accommodation at institutions throughout South Africa.
  • Old Mutual Insure contributes to education in South Africa through their Youth Development Programme.
    • University of Johannesburg Metropolitan Academy (UJMA) - in light of Employment Equity challenges and high youth unemployment rate, a need arose for Old Mutual Insure to partner with a well-known and reputable education institution to create a talent pipeline for as early as secondary school level.
    • City Year - Old Mutual Insure also partnered with City Year, a programme that focuses on the recruitment, training & support of young leaders, who then take part in an after school programme supporting children in selected schools.

There is still much more to be done of course and we are keen to engage further with all stakeholders to explore how we can build on this.

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