How Old Mutual Supports SMEs to Boost Jobs in South Africa

What happened

Old Mutual, one of South Africa’s leading financial institutions, has taken proactive steps to empower small and medium enterprises (SMEs) by not only providing investment capital but also ongoing support and mentorship. Ndumiso Zulu, CEO of Group Social Investments at Old Mutual, explains that their approach goes beyond merely giving money — they closely monitor and assist businesses to ensure growth and sustainability.

Why it matters

SMEs play a crucial role in South Africa’s economy, contributing significantly to GDP and providing much-needed employment opportunities. However, many small businesses struggle to access finance or fail due to lack of experience, poor management, or limited market access. Financial support without guidance often falls short in helping these businesses to thrive.

Old Mutual's combined funding and mentorship approach helps address common SME challenges. By offering expertise, monitoring progress, and providing strategic advice, they increase the chances of business survival and growth. This is vital for an economy battling high unemployment and economic inequality.

What this means for South Africans

For job seekers and entrepreneurs in South Africa, Old Mutual’s model offers a hopeful pathway out of economic hardship. Increased support for SMEs can lead to more jobs and better business sustainability. When small businesses succeed, they hire more staff, contribute to local economies, and build a stronger entrepreneurial culture.

Old Mutual’s involvement signals that investing in local businesses is not just about charity but about creating long-term value for the market and communities. It demonstrates a shift in mindset among financial institutions towards more inclusive development.

Impact on consumers, jobs and small businesses

Consumers stand to benefit as successful SMEs can deliver diverse goods and services, often tailored to local needs, improving market competitiveness and driving innovation. For workers, more stable SMEs mean more job opportunities and potentially improved wages and working conditions.

Small business owners gain not only access to capital but also practical advice on operations, marketing, and financial planning. This helps reduce failure rates common to new or under-supported businesses. Furthermore, ongoing monitoring ensures that investments are effectively utilised and that businesses remain aligned with growth objectives.

In the South African context, where many small enterprises operate informally or without proper access to financial products, Old Mutual’s backing could encourage more formalisation and compliance, leading to better economic integration and benefits.

Risks and limitations

While Old Mutual’s approach is promising, challenges remain. Not all SMEs will automatically succeed even with support, as market dynamics, economic downturns, and infrastructural issues also play a role. Moreover, the scale of investment and support must be sufficient to meet the volume of struggling SMEs.

There is also the risk that financial support might not reach the most vulnerable entrepreneurs due to stringent eligibility criteria or regional disparities. Additionally, the monitoring and mentorship process requires skilled professionals who understand diverse business needs, which can strain the resources of financial institutions.

Finally, SMEs still have to navigate broader issues such as electricity instability, regulatory hurdles, and skills shortages, which no amount of investment alone can fully solve. Hence, while Old Mutual’s strategy is a key piece of the puzzle, coordinated efforts across government, private sector, and communities are essential for fostering a sustainable SME ecosystem in South Africa.

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