ECONOMY

Saab Grintek Defence takes a ‘creative’ approach to achieve B-BBEE goals

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When the South African government introduced Broad-Based Black Economic Empowerment, (B-BBEE) its ultimate objective was to grow the economy of the country. The growth included development of small enterprises as one means of job creation and eventually improving the quality of life of previously marginalised individuals.

Saab Grintek Defence (SGD) took the call seriously and committed itself - like it is expected from all companies operating within South Africa - to help the government overcome barriers which caused exclusion in the past.

Says Charlotte Moagi, Vice President and Head of Transformation at SGD: “‘Inclusive development’ is not a new concept and yet few companies have succeeded to achieve this goal internally and many still struggle to implement the B-BBEE Codes with the inclusion of external clients’’.

This is in line with the declaration by the South African Government to promote social, economic and political inclusiveness. “As a company the way to contribute to this goal is by finding creative interventions to promote and develop enterprises to become self-sustaining and income generating businesses,” elaborates Moagi.

Moagi is tasked with the responsibility of streamlining and overseeing the company’s commitment and compliance to B-BBEE Codes and together with her team have stepped up efforts to ensure that Saab contributes in a meaningful way to among others, achieving sustainable enterprise and supplier development – which goes a long way in improving economic development in the country as a whole. She admits that there aren’t many black owned suppliers, especially black female owned companies on Saab’s database; hence her department is on a drive to identify relevant suppliers and, subsequently, offer assistance to such suppliers by means of mentoring, skilling and possibly financing.

Moagi explains that SGD, is a 28.75% black owned (by South Africans) and 71.25% Swedish owned company which invests heavily in skills development in South Africa and that it has prioritised and taken a “creative and dedicated approach” in identifying and developing enterprises and suppliers.

“We actively go out and scout for possible suppliers that we can incorporate and grow according to our 3-Step program. Having identified the beneficiary company we determine gaps and growth opportunities within their business, and then develop goals together with the company putting together a sustainable plan which will see the enterprise reach a fully empowered level in three years, or less where possible. We eventually expect the businesses to be financially independent with an increased client base and sooner or later employ more people.” says Moagi.

The empowered enterprises remain on SGD’s books and become preferred suppliers for relevant company needs.

Some of the enterprises that have been empowered include:

Chebo-Pele Logistics Support

Company background
CHEBO-PELE Logistic Support is a 100% black owned company. The business was founded in 2006 by Mr Molapo Tsotsotso, who has a BComm degree in Economics, qualifications in Marketing Management, Supply Chain Management. The company has a team of young and vibrant individuals who have a vast amount of experience in International Freight Forwarding, Supply Chain Management and Logistics in general. The business has an Armament Registration with Armscor, it is also registered with the SA Council for the Non-Proliferation of Weapons of Mass Destruction.
Services offered:

Warehousing, International Forwarding, Customs Clearing, Export, Import, Road freight, Airfreight, Sea freight and Consultation

Development
- So far, the company was provided with orientation on the operations and regulations of SGD’s Shipping Department to ensure that the necessary alignment is established between SGD’s requirements and the beneficiary capabilities.
- Office Computers and LED screen TV for the boardroom were bought to improve working conditions at the company
- A Nissan NP200 was bought to help the beneficiary with its domestic courier of goods.

Koena Engineering and IT Solutions

Company background

Koena Engineering & IT Solutions CC (Koena) is an accredited 100% black woman owned business that was established in 2009. The company is directed by Ms. Kagiso K Mokena who has university qualifications in Electrical (Heavy Current) and Mechanical Engineering, as well as other post graduate qualifications in this field. The business is classified as a “Designated Group supplier” as per the B-BBEE codes criteria, it is managed by youth as defined in the National Youth Commission Act of 1996.
Company accreditations and registration with Eskom as an authorised energy efficiency service provider (ESCO), registered with the Construction Industry Development Board (CIDB) as well as the Sustainable Energy Society Southern Africa (SESSA), Water Institute of Southern Africa (WISA) and the Wildlife and Environment Society of SA (WESSA)

Services offered:
Energy management, Security systems, electricity related Construction, Water management, and Environmental management

Development
- SGD has intervened by buying audit tools and equipment to improve business operations, ie bought tablets for easy and quicker communication on projects between Ms. Mokoena and her project managers who are out in the field. Audit analysis reports and diagnosis can be delivered to clients on the spot. Previously the company rented equipment to capture audit information and revert back later to clients; which increased their operational costs and delayed delivery as well.
- Mentoring & coaching on marketing skills (profiling and advertising), financial skills (analysing of financials, invoicing and accounts management) and business support (tender processing, quality, health & safety and complying with certain technical standards)
- Provision of early payment on orders and a once-off cash donation to assist with cash flow

Madlaitshwarela Garden Services
Company background
Madlaitshwarela Garden Services is a 100% black owned and 50% black woman owned company recently registered. The founder of the company is Mr Johannes Molefi and Ms Ivy Chauke. The business is a “Designated Group supplier” as per the B-BBEE codes criteria; it is managed by young people from a rural and underdeveloped area.
Service Offered:
Garden services, waste removal, cleaning and all related projects.
Development
Saab Grintek Defence gave support and assistance to the company by applying for registration at the Department of Trade & Industry under the name of Madlaitshwarela Garden Service 24. The following were implemented during registration:
- Assistance with company registration
- VAT registration
- Opening of bank account

The company will be assisted throughout to become an established and well-managed business. Development in various business management skills will be provided to ensure that after three years the company is financially independent and has an increased client base.
An ongoing process

Furthermore, there are lots of success stories when it comes to transformation at Saab since the department was established a few years ago. These success stories are mainly through procurement opportunities, enterprise development of ordinary enterprises, and unlocking opportunities for most aspiring and emerging black enterprises.
Comments Moagi: “There is a need to continuously re-asses this progress from time-to time, in order to ensure that stakeholders and other role players converge to assess the progress of the implementation of B-BBEE, hence the establishment of various forums within Saab to deal with the BBBEE codes as prescribed by the South African government.
The magnitude of B-BBEE demands that the progress be assessed from time to time, and while acknowledging that Saab has already made progress, a lot still has to be done to reach our desired levels. We will continue with efforts to ensure true and meaningful transformation and distribution of wealth and resources to the majority of South Africans.”

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