We see the role of an empowerment partner as three-fold:
1. Operational Involvement
Providing a skills pool from which the investee companies can draw on for HDSA employees and thereby meet employment equity needs.
Opening up new markets and securing new prospects for the business including but not limited to public sector opportunities.
Playing a liaison role between the investee and regulatory authorities, workforce and other stakeholders.
The Company is confident that we have suitable qualified individuals with sufficient networks and skills to assist the investee successfully in this regard.Sakhumnotho has a buy and hold investment philosophy due to the fact that it prefers to be operationally involved as a BEE partner. Sakhumnotho therefore has no short-term or "Private-Equity" approach towards the partnership.
2. Charter fulfilment
Enabling the investee company to meet various charter requirements including equity participation requirements.
3. Corporate Social Responsibility
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.
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