SEVEN HUNDRED MILLION IBM EQUITY EQUIVALENT INVESTMENT PROGRAMME LAUNCHED

SEVEN HUNDRED MILLION IBM EQUITY EQUIVALENT INVESTMENT PROGRAMME LAUNCHED

Minister Davies launched the seven hundred million rand (R 700 000 000.00) IBMSA Broad- Based Black Economic Empowerment Equity Equivalent Investment Programme. The launch of this Equity Equivalent Investment Programme is in line with the 2007 Codes of Good Practice that require that all entities operating in the South African economy to make a contribution towards the objectives of Broad-Based Black Economic Empowerment (B-BBEE).

Such contributions are referred to as Equity Equivalent (EE) contributions. EE contributions count towards the ownership element of B-BBEE made by Multinationals. The value of these EE contributions may be measured against 25% of the value of the Multinational's South African operations or may be measured against 4% of the Total Revenue from its South African operations annually over the period of continued measurement.

EE Programmes are expected to contribute towards the achievement of Enterprise Creation and Development, Foreign Direct Investment (FDIs), accelerated growth and development of black rural women and youth, sustainable growth and development, human development with focus on education and skills development and infrastructure investment with emphasis on developing the country’s research and development infrastructure.

On the 26 January 2015, I approved IBMSA Broad- Based Black Economic Empowerment Equity Equivalent Investment Programme for an investment amount of seven hundred million rand (R 700 000 000.00) over a period of ten (10) years. The IBMSA programme will comprise three integrated and interdependent components:

·         Enterprise Development Programme (EDP);

·         Academic Programme; and

·         Research Programme.

The Enterprise Development Programme (EDP) is focused on developing  black Owned and black women owned businesses with a particular focus on small and medium enterprises (SME’s) and South African youth, within the Information, Communication and Technology (ICT) domain.

During the ten (10) year period, the EDP aims to develop a total of seventy four (74) beneficiaries that are either individual with aspirations of being entrepreneurs; SME’s or matured enterprises seeking to grow through the acquisition of new skills and capabilities.

IBM will provide funding for 56 students to participate in the Wits curriculum.

• Undergraduate Stream: The objective is to provide disadvantaged black matriculates (from rural/peri-urban areas) a bursary funding of 100% of the total costs for the minimum amount of time allowed to complete a BSc Computer Science Programme.

·         Honours Stream: The honours level is the international standard for a first degree.  For international mobility, and entrance into postgraduate courses at foreign universities, the honours degree is a minimum requirement. The honours degree is an advanced, marketable qualification, recognised internationally.  The course provides improved employment prospects, and opens up increased opportunities for entrepreneurial prospects. It is the degree which provides entry into research and development. The Academic Programme at WITS will look at funding honours students, based on commonality of research interest.

·         Masters Stream: The objective is to provide funding for formalised Internships to Masters and PhD students from all recognised universities within South Africa, based on commonality of Research interest.

• Doctoral Stream: The objectives is to provide funding for formalised internships to Masters and PhD students from all recognised universities within South Africa, based on commonality of Research interest.

Research Programme

The IBMSA Research – Africa will focus on addressing key challenges of South Africa through commercially viable innovations that impact people’s lives.

Lastly, in terms of the company’s commitment, I have granted IBMSA the full twenty (20) points under the Ownership Element of the BBBEE Codes for their participation in the Programme.