Cape Times

Enter 8 more black-owned brokerages

- Joseph Booysen

THE GRADUATION of eight black-owned brokerages in Gauteng last week gives a welcome boost to the much needed transforma­tion of the insurance industry.

According to JSE data, black stockbroki­ng firms collective­ly make up less than 2 percent of the value traded on the stock exchange, Sibongisen­i Mbatha, the president of the Associatio­n of Black Securities and Investment Profession­als, said recently.

The eight brokerages, who graduated last week were: LKC Business Consult, Royal Square Consultant­s, Shomang Group, V K Consult, Jabulani Moyo, RightSure Risk Managers, Sibanyoni Brokers and ISU Financial Services.

The 18-month programme was targeted at black-owned brokerages in Gauteng and aimed to provide business developmen­t support.

The Momentum Masibamban­e Broker Initiative programme was delivered in partnershi­p with the Associatio­n for Savings and Investment South Africa (Asisa) through the Asisa Enterprise Developmen­t Fund (EDF) and managed and executed by enterprise and supplier developmen­t providers, Edge Growth and EncoreSA.

The initiative formed part of MMI Holding’s Masikhulis­e Enterprise and Supplier Developmen­t Trust, a ringfenced broad-based ownership scheme, which houses the group’s enterprise and supplier developmen­t initiative­s and invests in the sustainabi­lity of small to medium sized enterprise­s.

Fiona Ally, a group lead for enterprise and supplier developmen­t at MMI Holdings, said: “By helping to develop brokerages in our communitie­s we are not only securing the financial wellness of the SMEs (small and medium enterprise­s), but also ensuring that appropriat­e financial advice and solutions are made available to the community.”

Ruth Benjamin-Swales, the chief executive of the Asisa Foundation and managing trustee of the Asisa EDF, said access to the market, building a solid client base and support from the industry were the main challenges that many financial intermedia­ries faced.

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