Posted: February 20, 2015
Minister Davies Launches Seven Hundred Million IBM Equity Equivalent Investment Programme
|Country General Manager for IBM South Africa Mr Abraham Thomas
IBM Executive for the Equity Equivalency Investment Programme (EEIP), Mr Gavin Pieterse
Members of the media, ladies and gentlemen
Today we are launching 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
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.
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.