Black Economic Empowerment Status

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Sakhumnotho as Empowerment partner

Distinguishing Key Factors

Sakhumnotho Black Economic Empowerment Status

BEE Score Card

We see the role of an empowerment partner as three-fold:

Playing a role as the link between the investee and the communities in which it operates by identifying grass-root issues and how these can be addressed by the company.

Furthermore the Company strongly believes that the secret of a sustainable and successful empowerment transaction lies in choosing the right partner. Not only must the partner contribute and gel with the culture of the organisation but it must also add value to the organisation with regards to the following:

•  The BEE partner must be accepted by the market;

•  It must contribute to business development of the organisation; and

•  Must be operationally involved.

The following keynote address by Sakhumnotho's Chairman, Mr. Sipho Mseleku, sheds further light on the Groups view on the role of empowerment:

"Empowerment is not about taking from the white business and giving to black business but is about expanding the playing field and bring about new shareholders with new ideas, values, networks and resources so as to increase the productivity and profitability of the enterprise. Empowerment is about creating wealth for all involved in the enterprise both black and white. Let us work together both black and white business to transform the economy of this country and make Black Economic Empowerment a reality. As socially responsible corporate citizens let us ensure that we create an environment where the economy grows and develops, where jobs are created, where poverty is alleviated and where the future and security of our children is guaranteed."

Empowerment is a short term business imperative, the introduction of the sector charters will see all serious businesses comply with these targets by no later than 2010 which will negate the value that most BEE partners bring. The Groups' long term focus therefore is Africa. We believe and is committed to the current International African development initiative. Sakhumnotho aims to involve all its stakeholders on this African development path.

Distinguishing key factors

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Some of the key factors that distinguish Sakhumnotho from other BEE players are as follows:

• Hands on approach :   We believe in operational involvement and utilize our expertise and relationships to add value to the business by taking up meaningful management and board positions.

• Strong relationships :   Sakhumnotho's Chairman Sipho Mseleku is in a privileged position being Chief Executive Officer of CHAMSA and the SADC Chamber. This has enabled him to form strong relationships with private and public sector players, some of whom are stakeholders of the investee. Other individuals such as Aaron Molefe also have very strong relationships within the governing party and business. Furthermore do entities such as the Vulindlela Development Trust provide the Company with a national reach in the communities and stakeholders within the previously disadvantaged communities.

• Relevant Broad Base : The group has a substantial broad base including youth, retailers, women, disabled and community bodies.

• Certainty and Stability : The Company is operationally active and well established with a track record:

• Experience :   The Company's officers have considerable work experience and are familiar with the corporate decision making processes and can effectively participate in board and management discussions. The Company compromises of various individuals that each has in excess of ten years of managerial experience.