Boost to economy

THE Federation of Unions of SA (Fedusa) and our affiliate, Old Mutual Representative Employee Body, Insurance Banking Staff Association (Omreb/Ibsa), have welcomed the listing of Old Mutual Limited on the JSE as a great vote of confidence in South Africa and the African continent.

This is at a time when the economy is facing serious challenges relating to low growth, high employment and the need to eliminate poverty and reduce inequality by 2030, according to the National Development Plan.

Old Mutual Limited announced that there would be no involuntary job losses as a result of the corporate restructuring, which Omreb/Ibsa president Vicus Kammies and acting general secretary Luke Bradley welcomed on behalf their members, the employees as a body, as well as in the interests of the industry and the economy as a whole.

“This listing will boost confidence in the South African economy, strengthen the investment goal that was set by President Ramaphosa and contribute greatly to job creation. Fedusa demands that Old Mutual play a more meaningful role in human capital development by assisting unemployed graduates to gain workplace experience through the Youth Employment Service (YES),” said Fedusa general secretary Dennis George.

It was announced that the listing was expected to contribute about $10 billion (R136 bn) to the South African economy.

Fedusa also supports the condition that Old Mutual Limited allocates R500 million to a new, ring-fenced Enterprise Supplier Development Fund black economic empowerment ownership, decent employment creation and enterprise supplier development.

The listing of Old Mutual Limited is important for the economy because shares can be traded on the stock exchange.

The fundamental role of the stock exchange is to bring together in one marketplace providers of capital and companies that require capital.

Providers of capital such as worker pension funds earn a return on their investments through dividends and capital growth, thereby increasing the overall wealth of South Africans, while the companies in which they invest provide jobs and propel the achievement of higher economic development of the country, George concluded. Frank Nxumalo Fedusa media officer