Background

In 2004, a broad-based black empowerment consortium led by businessman Patrice Motsepe bought a 10% shareholding in Sanlam in what was to become one of the most far-reaching black empowerment transactions to date.

The Ubuntu-Botho* deal brought together various stakeholders that would empower small businesses at even the most rural level through access to capital, business expertise, and helping them grow their businesses through a network of cross-selling opportunities.

The success of the venture has been remarkable – while the Ubuntu-Botho deal has contributed to the significant increase in Sanlam's share price, this far-sighted venture has helped Sanlam fast-track its transformation into a truly representative South African company.

Sanlam Group CEO Johan van Zyl said of the transaction that it represents Sanlam's firm commitment to meaningful transformation. "It represents the opportunity to service new and growing markets and to harness the full economic power of our diverse society."

Patrice Motsepe, Ubuntu-Botho chairman, says the value of the transaction is that it provides an opportunity for Ubuntu-Botho to participate in and contribute to making Sanlam the leading financial services group in South Africa. "Poor and unemployed South Africans will also benefit from the transaction through the Sanlam Ubuntu-Botho Community Development Trust."

*Ubuntu and Botho are the Nguni and Sotho words, respectively, which loosely translated, means "I am, because you are", meaning that one is inextricably part of his community and hence has a responsibility to that community.