Old Mutual Malawi has this year clocked 70 years of doing business in Malawi. Throughout the past seven decades, the firm has sailed through economic ups and downs, demonstrating stability and proven experience as it pursues its long-term vision and purpose. In this interview, our Business Editor CHIKONDI CHIYEMBEKEZA engaged Old Mutual Limited group chief executive officer EDITH JIYA to shed more light on the company’s performance and other issues. Excerpts:
PHOTOGRAPH: COURTESY OF EDITH JIYA
Q. What does clocking 70 years mean to your customers and stakeholders?
A.It signifies a significant milestone for Old Mutual Malawi and our valued customers and stakeholders. Our vision is to help our customers thrive by enabling them to achieve their lifetime financial goals while investing their funds in ways that will create a positive future for them, their families, their communities and broader society. This stability translates to peace of mind for our customers, knowing they can rely on us to honour our promise to them today and for years to come. We are a business that was there before Malawi attained its independence in 1964, before the Malawi kwacha was the trading currency.
Q. Over the past 70 years, how do you think Old Mutual has contributed to transforming communities and growing the country’s economy?
A. For the past seven decades, Old Mutual has actively contributed to the economic development of our nation and fostered positive societal change. Our commitment has resulted in significant employment generation, with thousands of individuals directly and indirectly benefitting from opportunities within our organisation over the years. Currently, we proudly support a workforce of over 700 individuals. Old Mutual has been so empowering to its employees. We have a history where employees were provided the opportunity to become part-owners of the company. For instance, during demutualisation in 1999 when Old Mutual’s structure legally changed to become a public-traded company, staff were offered shares to become part-owners and these staff still enjoy dividends to this day. As a business, we are also quick when responding to various emerging national priorities. During the Covid-19 pandemic, Old Mutual provided free life cover to all health workers, constructed a Covid-19 isolation centre in Mzuzu and sponsored the oxygen piping of Ward 1A at Queen Elizabeth Central Hospital. We further assisted during the unprecedented cholera outbreak, with our response targeting the worst-hit areas through district health offices in Lilongwe and Blantyre.
Q. With the ever-evolving customer needs and market demands, how does Old Mutual plan to stay ahead of time in the next 70 years?
A. As a business that started operating in 1954, it is evident that we have accumulated ample experience in our trade. We attain this by constantly championing the customer. This goes beyond meeting their evolving needs and aspirations, but also making sure that they are satisfied with our service to them and building confidence that they continue to trust us with their needs. We started as a retail life insurance business servicing a few affluent customers, but over the years, we have been growing and diversifying to meet our customers’ needs.
Q. What values and principles have guided the business throughout the 70-year journey?
A. We are a business guided by principles and values and throughout the years, we have strictly adhered to these to guide our conduct. These include championing the customer, diversity, where we celebrate and embrace the power of diversity and inclusion. Furthermore, we also value innovation, integrity, respect, and trust. Our success is inclined to adherence to these values.
Q. What do you see as biggest challenges and opportunities facing the group in the years ahead?
A. Some of the challenges we foresee in the years coming ahead mainly is the financial instability facing our country. For example, recently our economy has been characterised by fluctuations due to factors such as inflation and currency depreciation. Therefore, managing a business of our kind in such an environment requires careful planning and risk mitigation strategies. The other challenge, more particularly on insurance is the low penetration which currently stands at less than three percent. This, however, provides us with an opportunity to raise awareness of finance products. You may wish to know that, as a business, we are already on top of this through our free financial education programme. We educate Malawians at no cost to them on the importance of being in charge of their finances in a bid to improve the uptake of finance products.
Q. How does Old Mutual plan to take advantage of emerging trends such as environmental, social and governance (ESG) investing to drive both financial returns and positive societal impact in the coming years? A.Old Mutual is conscious of how ESG issues can positively impact financial returns and societal impact. This was demonstrated when we publicly launched our Responsible Investment approach in 2015. ESG issues, as you know are specific to each region. Our commitment to ESG issues is evident in our alternative investments section where our focus areas are infrastructure, agriculture and private equity ventures. In agriculture, for instance, we have the Ulimi Fund where currently we have invested in export-focused Macadamia farming, which is supporting foreign exchange generation and creating employment for over 1 900 Malawians. In Lilongwe, we built hostels for 154 university students using sustainable building methods. Furthermore, we are exploring opportunities to expand our investment footprint in renewable energy.
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