IBM launches R700m BEE initiative
CAPE TOWN — Information technology group IBM South Africa is to invest R700m over the next 10 years in academic, research and entrepreneurial projects to enhance its broad-based black economic empowerment ranking.
The projects are “equity equivalents”, which the codes say can take the place of the ownership requirements provided they equal 25% of the value of the group’s South African operations or 4% of its annual revenue.
The Department of Trade and Industry approves and monitors equity equivalent projects.
Launching the IBMSA programme yesterday, Trade and Industry Minister Rob Davies said he had granted the company the full 20 points under the ownership element of the codes for its programme, which IBMSA GM Abraham Thomas said would enhance the group’s competitiveness in government tenders.
A better empowerment ranking establishes IBM’s eligibility not only for government contracts that have empowerment requirements but also for contracts with privatesector companies that increasingly have to ensure suppliers comply with empowerment requirements.
IBMSA’s executive for the equity equivalency investment programme, Gavin Pieterse, said pressure from clients had made an enhanced ranking a commercial necessity. He believed the impact of the programme would be “enormous” and could provide a platform for other companies to join.
IBM president and CEO Ginni Rometty emphasised the importance of SA for the group when she met President Jacob Zuma on a recent visit to SA.
The enterprise development component (29%) will focus on 74 beneficiaries with emphasis on small and medium enterprises, and youth. The academic programme will fund 56 students to study computer science at the University of the Witwatersrand. Funding for postgraduate degrees will also be available. A local research laboratory is planned for entrepreneurs to develop new ideas.
Global engineering company Siemens yesterday launched its supplier development programme to help 50 small and medium-sized suppliers become globally competitive. They were selected from the group’s 3,500 suppliers.