Sanlam doing well by doing good
“We’ve been on an empowerment journey for over 20 years, and it’s been a great story. And now, of course, Sanlam finds itself in a totally different scenario. Much more transformed, much more reflective of South Africa, and in 33 countries on the African continent.”
On 1 April 2004, Sanlam brokered a BEE deal with Ubuntu-Botho (UB), led by Patrice Motsepe, who bought 8% shareholding in Sanlam.
UB was established to bring together previously excluded individuals as shareholders in the company, and for them to benefit from the growth of Sanlam over time. In 2008, UB paid out its first dividend, worth R50 million, to over 800 broad-based shareholders, individuals, trade unions, religious organisations, women and youth groups, as well as the Sanlam UB Community Development Trust.
The improvement in people’s lives has been hugely significant. Today, many of these shareholders live in houses paid for by their shares, their children are educated, and they have started their own businesses.
At the end of its 10-year contractual period in 2013, the UB deal created approximately R15-billion in value from an initial investment of R1.3-billion, making it among South Africa’s most successful BEE deals.
The partnership continues to grow and continues to empower an increasing number of South Africans.
These are the stories of just two of the UB beneficiaries:
Nonhlanhla Mkhize (Ncinci) bought her general dealer business in 1987 and beams with pride when she speaks about it. “Business is something you do with your hands, physically. I love it. I love it so much”, she says. The success of her business is a good mix of hard work and passion, along with clever financial management. Ncinci is a UB shareholder and has been using her dividends to increase her stock levels, which in turn, have increased her profits, allowing her business a steady growth.
Lynette Mahlangu, another UB shareholder, sold about half of her shares and bought a townhouse with the profits. The townhouse is being rented out and the bond of another property is subsidised by this rental income. Lynette relishes in the feeling of freedom and power this has afforded her. Patrice Motsepe states that “With a growing middle class comes an improvement in people’s standards of living, better education, a commitment and a stake in the future of the country, but also a growing market”. A growing market which is in itself, helping Sanlam to grow.
Making a difference through the Sanlam Foundation
Sanlam’s Blue Ladder Schools Programme partners with schools, educators, education departments and communities across the country to give children a head start on a brighter future by improving maths tuition. To date, it has sustainably improved 75 schools, advanced 1 936 educators and reached a staggering 71 693 learners. It all forms part of the vision of Sanlam to not only be a world-class, competitive, profitable company, but also to embrace a sense of humanity, compassion, and caring through its commitment to help the people of South Africa, and those on the African continent.
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Improving The Standard of Living in South Africa
“Ubuntu-Botho (UB) was established to bring together individuals to be shareholders in terms of the equity that we bought and we wanted all of them to be part of this investment that we made in Sanlam for the long term and for them to be benefit from the growth and success of Sanlam over many, many years.”
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Highlighting A Sense of Humanity
“Of course we got to run world-class companies and of course we’ve got to be very competitive and we’ve got to be profitable, but side by side with that it’s also important to have a sense of humanity, a sense of compassion, a sense of caring and a commitment to help others.”
Patrice Motsepe says he had a very good appreciation of Sanlam’s history and also the good work that Sanlam has done in terms of its broader upliftment partnership and improvement of the standards of living amongst many South Africans.
Empowering Small Business Growth
The success of Ncinci’s business is a good mix of hard work and passion, along with clever financial management. The Sanlam Ubuntu-Botho partnership has enabled her as a shareholder to use her dividends to increase her stock levels, which in turn, have increased her profits, allowing her business a steady growth.
Freedom Through Financial Empowerment
The Sanlam Ubuntu-Botho partnership also enabled Lynette Mahlangu, another Ubuntu-Botho shareholder, to sell about half of her shares and buy a townhouse with the profits. The townhouse is being rented out and the bond of another property is subsidised by this rental income. Lynette relishes in the feeling of freedom and power this has afforded her.
Doing Well By Doing Good
Sanlam’s Blue Ladder Schools Programme partners with schools, educators, education departments and communities across the country to give children a head start on a brighter future by improving maths tuition. To date, it has sustainably improved 75 schools, advanced 1 936 educators and reached a staggering 71 693 learners.
Empowering Through Education
The Sanlam Blue Ladder Schools Programme takes a more holistic view of education, regarding it as part of a whole-school approach. It’s driven by five pillars around the core maths focus over a five-year period.