INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

Role in communities

Enterprise development

> R48 million development fund focused on empowerment in South Africa
> Supports small- and medium-sized black-owned and empowered enterprises
> Focuses on value chain transformation
> Emphasis on linking preferential procurement to enterprise development and increasing support for black-owned and women-owned companies.

Barloworld Siyakhula, the group’s enterprise development vehicle, was launched in 2007 to promote B-BBEE through the financial and non-financial support provided to small- and mediumsized suppliers, contractors and enterprises in Barloworld’s value chain.

Siyakhula invests in black-empowered and black-owned small- and medium-sized enterprises (SMEs) to create joint ventures, enabling these companies to align themselves with Barloworld’s B-BBEE strategies for preferential procurement, enterprise development and corporate social investment.

Siyakhula has invested in seven companies and works closely with them to ensure their success. This includes strengthening their own B-BBEE scorecards to enhance their competitive advantage. Four enterprises have already reached Level 1 with valued-added status. One enterprise is at Level 2 and the remainder have achieved Level 3.

The fund was established with initial capital of R20 million and committed funds at present are approximately R48 million.

The enterprises currently supported are:

Avis Van Rental Pretoria
Avis Van Rental Western Cape
Moe Logistics, a driver-owner scheme covering 198 drivers
Nathi Africa, a materials handling business in South African ports
Machas Electrical, providers of electrical installation and maintenance services
20/20 insight which aids Barloworld Siyakhula in the development of small- and medium-enterprises by providing valuable assistance in the planning and evaluation of their businesses
Rishi Rahaman Consulting which assists Barloworld Siyakhula with risk profiling, contractual and litigation work for several of Barloworld’s enterprise development beneficiaries
Powertel Engineers, a specialised electrical contracting company, providing turnkey solutions for the power and telecommunications industries.

Some 540 jobs are provided in these businesses.

Reaching up and reaching out
Na-ame Ismail, empowerment shareholder of Western Cape Van Rental trading as Avis Van Rental CapeTown, acknowledges that the past year has been a tough one , but it hasn’t stood in the way of the business chalking up some outstanding achievements, such as a 26% increase in turnover and a 15% growth of its fleet while its staff complement increased by 10%.

Business is by no means easy as many companies are still operating with tight budgets. However, the company’s attainment of consistent Level 1 B-BBEE contributor and value-added enterprise status has unlocked many future business opportunities.

“Barloworld Siyakhula’s assistance in helping us achieve this status has opened doors for us and, as we are now a Level 1 contributor, many more companies are prepared to deal with us.”

 
Empowerment partner Na-ame Ismail, CEO, Johan Stigling, and Staff of Western Cape Van Rental (Pty) Ltd t/a Avis Van Rental

Barloworld empowers its value chain
Nathi Thusi, founder and managing director of Nathi Africa, reports that the company has seen considerable growth over the past year, increasing its staff count by more than 25% as well as expanding its geographical footprint.  
Nathi Thusi
Through committed support, including financial assistance, Barloworld Siyakhula works to empower its supply chain and create employment opportunities. Beneficiaries include: Machas Electrical, owned by Enoch Sithole, is structured around the provision of high-quality electrical installation, maintenance and repair work and has as its main customer Barloworld Equipment.  
Enoch Sithole, Managing Director of Machas Electrical (centre), with Jeffrey Sibanda and Lassie Mokansi

Unearthing a wealth of diversity
Barloworld is a founding member of the South African Supplier Diversity Council (SASDC) dedicated to promoting sustainable supplier diversity through targeted procurement and enterprise development.

Supplier diversity is the active business process of sourcing products and services from previously under-used suppliers. For Barloworld, it helps to sustainably and progressively transform its supply chain. Supplier diversity development involves the integration of a growing pool of competitive black suppliers into our supply chains through targeted procurement and enterprise development initiatives.

Barloworld, a founding member, has joined forces with like-minded private sector corporations, state-owned enterprises and universities which believe in the social and economic importance of supplier diversity.

 
Barloworld Siyakhula recently hosted a supplier development workshop with some 24 of its BEE suppliers

Socio-economic development

> Social investment of R64 million made across the group over past five years
> SED spend in South Africa over four years is R26.7 million
> Responsive to the needs of local communities
> Alignment with leadership philosophy
> Focus on creation of social compacts and shared value

Barloworld is committed to responsible corporate citizenship, including careful custodianship of the environment and efforts to address climate change. The group approaches all these objectives from the foundation of sound business acumen.

In the course of its business, through extensive, ongoing interactions, Barloworld engages with a wide range of stakeholders to understand their interests and concerns and to construct its value propositions. We seek to provide leadership in society by encouraging our own leaders to contribute constructively to South Africa’s development challenges and to act as role models, and by helping to create responsible leaders of the future.

Through our social investment initiatives, the group has over many years sought strategic partnerships, synergies and innovations in public-service delivery that can be developed to scale by the public sector. Through grants, networking, referrals and insistence on sound management practices, responsible governance and accountability, Barloworld endeavours to build capacity and sustainability in its development partners, where necessary. The group has invested R64 million in related initiatives over the past five years.

The main focus of the Barloworld Trust is improving standards and facilitating access to education. In the current milieu, the trust has found value in working with schools that provide centres of excellence and reach out to underperforming schools nearby to strengthen school management and upgrade the quality of teaching and learning, thus facilitating the transition of students from disadvantaged circumstances to tertiary education.

In addressing the social and development needs of society’s most vulnerable citizens, Barloworld favours a community-centred approach, supporting its NGO and empowerment partners in providing or facilitating access to essential social services and empowering vulnerable children, families at risk, aged and disabled people in their communities. Efforts continue to bolster the sustainability of these initiatives through skills development and commercially viable enterprise development.

Understanding that our natural environment sustains every form of human endeavour, the group has supported the research, advocacy and conservation work of the Endangered Wildlife Trust and the WWF SA for many years.

GROUP CSI SPEND
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Barloworld helps to realise Mandela’s dream of a Gauteng-based Children’s Hospital

Driven by his love for children and a desire to end their suffering, former President Mandela established the Nelson Mandela Children’s Fund (NMCF) in 1995.

Joint efforts are underway by the NMCF, the South African Department for Women, Children and People with Disabilities and funders such as Barloworld to champion the establishment of a hospital that focuses on child-centred healthcare.

The Nelson Mandela Children’s Hospital will be a state-of-the-art specialist healthcare institution where no child will be turned away because of inability to pay – making Mr Mandela’s dream a reality, as well as being the epitome of how society views the health issues of its children, including those who are vulnerable, in a serious light.

Barloworld non-executive director, Mrs Sibongile Mkhabela, is CEO of the NMCF.


SIFE (Students in Free Enterprise): heads for business, hearts for the world
SIFE (Students in Free Enterprise) utilises the energy, enthusiasm and idealism of university students to effect positive change by teaching others that business and free markets are the answer for long-term economic growth and improvement in quality of life.

Thanks to support provided by Barloworld, throughout 2012 SIFE SA will be encouraging teams from tertiary education institutions around South Africa to implement enterprise and local economic development projects in their communities. These projects will focus on empowering people in need by considering relevant economic, social and environmental issues, applied business and economic concepts and an entrepreneurial approach.

Teams from 26 higher education institutions took part in the 2011 SIFE SA National Competition, at which Matthew Govender, CEO of Barloworld Siyakhula, the group’s enterprise development arm, was invited to act as an opening and semi-final round judge.

The SIFE University of KwaZulu-Natal team won the South Africa National Competition in July 2011. During the 2011 academic year, this team organised 18 educational outreach projects in their surrounding communities. They then went on to compete in the 2011 SIFE World Cup competition, and made it through to the semi-finals