Should finding the perfect BEE partner be so tough?

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Through the Intombazane Development Trust, aided by BEE consulting firm Gestalt, your business can reach the highest possible empowerment score for the lowest investment.

 

When it comes to BEE and your business, finding the right partner is a challenge. Gestalt, an expert in broad-based BEE (BBBEE) consultation, says there are a number of important criteria that have to be met to fit the bill as a BEE shareholder.

“A well-structured BEE shareholder should ensure its company meets all critical considerations such as empowerment, BEE points, business benefits, costs, risk, shareholder value, sustainability and its share purchase model is structured to provide the optimum balance for the company,” says Anathi Swazi, lead transformation consultant at Gestalt.

“This criteria is important and finding a partner who benefits your business ensures you can strategically carry on with a partner that adds value.”

Deon Oberholzer, group CEO of Gestalt, says business owners typically pose three tough questions when the subject of introducing a new partner to the business is raised: Will the new partner try to tell them how to run their business? Will they have the expectation they will get rich without adding any value? If for any reason the relationship does not work out, can the company be held to ransom?

“These and other comments and concerns were factored into the thinking behind Intombazane’s approach, a 100% black women-owned entity, and it has allowed us to access opportunities on behalf of the beneficiaries that may have not been accessible,” says Oberholzer.

Finding a BEE partner that works for your bottom line

Gestalt has been delivering profitable growth through applying original BBBEE strategies since 1998 and began their journey of finding a BEE partner in 2007. This is how Intombazane came to life.

“We created Intombazane as a shareholder for ourselves, and felt it was suitable for other companies,” says Mannie Hirsch, trustee of Intombazane Development Trust.

Intombazane aims to go above and beyond transforming society.

Margie Kriel, beneficiary and bursary programme co-ordinator at Gestalt

As a BEE partner, Intombazane’s understanding of the complex requirements of BEE codes (governed by the BBBEE Act of 2003) is able to provide solutions for businesses to reach the highest possible empowerment score for the lowest investment.

There are three buy-in levels available through Intombazane:

For the sale of:

  1. Just over 10% of equity ensures the company meets the minimum requirements of the ownership priority element in the BEE scorecard. This ensures the company will not drop by a BEE level and gains between 14 and 16 points on its scorecard.
  2. The full 25% + 1 share of company equity secures the full 25 ownership points for the company.
  3. More than 30% of equity secures the full points and qualifies the company to be recognised as black-women owned.

To date, Intombazane has a track record of more than five years with more than 10 companies.

“Intombazane also aims to help strengthen the skills within businesses,” says Bert Van Zyl, group sales manager at Gestalt.

This is achieved by giving companies the space to prescribe their preference of young black beneficiaries to the organisation. Intombazane then ensures new recruits for any business can be targeted from the right demographic groups.

This adds additional value to being a partner to Intombazane. Prescribing each shareholder’s preferred beneficiaries builds alignment and relevance to industry and businesses.

“While your business is building its BEE levels, you are also building your business with the relevant skills,” says Van Zyl.

Intombazane, aided by Gestalt, has guided and provided organisations with key insights into BEE and how it can be made simple and cost effective. This is possible, in part, by Gestalt’s 22-year track record in marketing, promoting and representing organisations as a transactional adviser and facilitator to identify and implement new investment opportunities.

This partnership also guarantees that Intombazane provides a level of performance for companies to achieve excellence as they span all parameters for a fully transformed economy.

Invested in young black SA women 

Intombazane is also paving the way for companies to operate with impact. The organisation achieves this by investing in the success of young black South African women.

Margie Kriel, beneficiary and bursary programme co-ordinator at Gestalt, says: “Intombazane aims to go above and beyond transforming society and ensures black South African women are represented in business and positions of power.”

Intombazane, whose beneficiaries are young black women under the age of 29, also provides a platform for genuine transformation. This is achieved by maximising the use of its capital and investing in the education of these beneficiaries.

By investing in the education of young black women, Intombazane is able to unlock relevant impact for each shareholder and ensure the tangible progression of women’s empowerment through business. This guarantees the advancement of pragmatic shifts in gender equality in the country and the socioeconomic development of SA.

This article was paid for by Gestalt. 

https://www.businesslive.co.za/companies/2022-11-10-native-should-finding-the-perfect-bee-partner-be-so-tough/