R1 BILLION INJECTED INTO THE EQUITY EQUIVALENT PROGRAMME

R1 BILLION INJECTED INTO THE EQUITY EQUIVALENT PROGRAMME

The launch of the multi-million rand Dell Equity Equivalent in Johannesburg today brings the total investment amount to date of all the approved Equity Equivalent Investment Programmes (EEIP) to just over R1 billion. This is according to the Deputy Director-General of Incentives Administration at the Department of Trade and Industry (the dti), Ms Malebo Mabitje-Thompson.

Mabitje-Thompson was speaking at the announcement ceremony of the Dell Broad-Based Black Economic Empowerment (B-BBEE) Equity Equivalent Programme with the establishment of an Information and Communication Technology (ICT) academy in Bryanston today.

“Today’s event marks another milestone for the evolution of the B-BBEE policy and in particular the EEIP. We are glad that we are launching the seventh B-BBEE Equity Equivalent project in the history of B-BBEE that will be running for the next ten years,” said Mabitje-Thompson.

She added that out of the seven approved Equity Equivalent projects to date, four of them were in the (ICT) sector. She emphasised that it was evident that the ICT sector was important and has a potential to put the country on a global map in terms of technological advancement.

According to Mabitje-Thompson, the EEIP programme was created to enable multinationals that are willing to participate and contribute positively towards BEE to do so under the ownership element.

Mabitje-Thompson congratulated Dell for such an innovative initiative which has an element of both skills development and enterprise development. She reminded delegates that the 1st of May 2015 marks the implementation of the Amended BEE Codes of Good Practices.  

The Managing Director of Dell Enterprise Solutions Group, Mr Stewart van Graan, said the academy would focus on developing leading high performance computing (HPC) skills, complemented by business management and entrepreneurial and life skills.

According to Van Graan, the establishment of the academy has been informed by many interventions.   

“Firstly, Dell’s history of transformation is aligned to the B-BBEE Codes of Good Practice and the organisation’s holistic approach to all elements of the codes has had a meaningful impact on the lives of many in South Africa. Secondly, a strategic partnership with the Council for Scientific and Industrial Research, and particularly the Centre for High Performance Computing, has provided a proven track record of the impact that technology has on the lives of the youth in South Africa,” said Van Graan.

He added that as an equity equivalent investment, the initiative met government objectives on multiple levels with regards to multinational organisations operating in South Africa to actively participate in the economy, fast-track the growth of previously disadvantaged youth, contribute towards new venture creation, as well as skills and infrastructure development.

The Khulisa Academy will be 100% owned by an educational trust and managed as a separate entity to the Dell subsidiary. The academy, which has been approved by the dti as an economic programme, will focus on promoting the inclusion of blacks into mainstream technological economic activity with relevant and critical ICT skills and knowledge, leading-edge skills, centred on HPC, and the design of technology infrastructure solutions.  

Equity Equivalent is a programme that government created to enable multinationals that are willing to participate and contribute positively towards BEE to do so under the ownership element. The programme is not open for all multinational to participate but rather those that are precluded to give out direct equity in the country due to their global practice. The view of government is that all companies operating in country whether foreign owned or local based should be compliant with the 25% ownership target.