A black economic empowerment deal announced by financial services group Sanlam on Wednesday will enable the group to break into new markets, according to Sanlam Financial Director Flip Rademeyer.
He said it would also allow the group to expand access to financial services to a broader market.
Sanlam announced on Wednesday that it had entered into a partnership with Basebenzi Investment, the investment arm of the Food and Allied Workers Union (Fawu), to create a broad-based BEE financial services company, Break-thru Financial Services.
Basebenzi will hold 60% of the total issued share capital of Break-thru in a Union Consortium, with further affinity groups joining the consortium in due course. Sanlam will initially hold 40%, but its shareholding may dilute to a minimum of 25% in favour of the consortium.
The key parties involved in realising the Break-thru vision have included Johan van Zyl, CEO of Sanlam; Flip Rademeyer, Financial Director of Sanlam; Ambassador Chris Dlamini, CEO of Basebenzi; and Patrick Johnson, President of Fawu. Chris Dlamini has been appointed chairman of Break-thru and Ncedo Mlamla has been appointed CEO.
Sanlam will contribute the infrastructure, skills and training required to establish Break-thru in line with a detailed business plan and Fawu will bring its membership base as potential customers.
Break-thru will provide a one-stop financial service that will include employee benefits, group solutions, multi-management, home loans, personal loans, debt solutions and financial knowledge development. Break- thru is a revolutionary business model in that it will be focused on addressing the needs of the workers by developing appropriate solutions and using effective distribution channels to service their needs.
Sanlam will also become Break-thru’s preferred provider in respect of certain products and services, such as actuarial and investment consulting, member education and back-office services.
“Break-thru is in line with our strategy of enhancing Sanlam’s profitability and reach by making investments that provide an appropriate real return on capital invested, as well as improving business volumes. This is a very exciting development and a win-win situation for both parties,” Rademeyer said.
“Break-thru will empower Sanlam to break into new markets, especially in its employee benefits, investments and group solutions businesses, and allow it to expand the access to financial services to a broader market. Break-thru represents effective transformation as people on the shop floor will now be empowered to take charge of their financial futures.” – I-Net Bridge