The Momentum Metropolitan Health Group has announced a BBBEE deal that brings in the investment arms of the National Education, Health and Allied Workers' Union (Nehawu) and the Police and Prisons Civil Rights Union (Popcru) as shareholders in the business.
The revised shareholding in the health division of JSE-listed Momentum will see Nehawu Investment Holdings, the Popcru Group of Companies (PGC) as well as a number of black business leaders in the healthcare sector take up a 32% stake in the business. Momentum Metropolitan Health will retain the remaining 68%.
The black business leaders who will participate in the deal include Dr Gil Mahlati, Prof Lucky Mathebula, Dr Ntombi Mutshekwane, Mogologolo Phasha, Dr Sello Rathete and Dr David Sekete.
“We are bringing together an exciting set of stakeholders who have the same positive intent and required skills to uniquely solve for a better future for our society by improving our healthcare industry,” said Hannes Viljoen, CEO of Momentum Metropolitan Health.
“The partnership between major labour unions, exceptionally credible black industry leaders and our company’s capabilities and management competence, gives us the ability to work together to create more health for more people for less,” he said.
“Essentially, we are gearing up to enable universal access to healthcare for all South Africans.”
Momentum Metropolitan Health Group, which comprises Momentum Health Solutions and Metropolitan Health, provides medical insurance to more than 3.2-million people, including individual consumers and employee groups in the retail, corporate and public sectors.
The deal comes against a backdrop of increased pressure from government on financial services groups to transform in an effort to bring in more black people into the mainstream economy, particularly at the ownership and management level.
Medical insurance providers are also grappling with exactly how their businesses might be affected by the planned introduction of a National Health Insurance (NHI) scheme, which is meant to provide universal health insurance for all people in SA and which is expected to be compulsory.
Makgane Thobejane, CEO of Nehawu Investment Holdings, said the transaction acknowledged the role of labour groups in the healthcare sector and would be a “positive force” in ensuring more equitable access to healthcare.
“PGC has been working with Momentum for a number of years, so with the new stakeholders, we are confident that the vision that has been in development for quite some time can be realised,” said Tshaka Mdiya, PGC Group CEO.
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