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O N L I N E
SEKUNJALO INVESTMENTS LTD
C O R P O R AT E B R O C H U R E
www.sekunjalo.com
Invest for
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Sekunjalo Investments ha companies under its umbr South Africa’s key industr alliances with global brand Saab has helped the comp of its founder and executi
Sekunjalo Investments Ltd
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hen it was incorporated in 1997, just three years after the first democratic elections to be held in that country, Sekunjalo was able to ride the wave of euphoria and optimism that was infusing South Africans. Its founder, Dr Mohammed Iqbal Survé, was already well known as the ‘Struggle Doctor,’ a reference to his medical work with victims of apartheid and provision of medical care to a number of prominent South Africans after their release from Robben Island. Two years later, the company listed on the Johannesburg Stock Exchange, making 36-year-old Survé the youngest CEO of a listed diversified conglomerate. It was definitely a moment of opportunity, an historic moment, and Sekunjalo’s name reflected that—it translates as ‘now is the time’. And its mission—to make strategic investments in growing South African businesses and bring real influence to the communities that were so scandalously held back under the apartheid regime—was definitely of its time. It was in 1997 that the BEE (Black Economic Empowerment) codes of practice came into being and with them, the requirement for new companies and overseas investors to ensure among other things that the equity in South African businesses was fairly distributed. Since then the South African economy has flourished, proving that this policy, far from being restrictive, has encouraged entrepreneurship and achievement among groups that previously wouldn’t have had a look-in. All of Sekunjalo’s directors have their origins in these communities, including Survé, who grew up in poverty in the repressive climate of the 1960s and 70s. So when Survé and three fellow activist co-founders started the company they did not have the advantage of traditional business experience. They saw the company as a platform for empowering people, not a means of enriching themselves individually. They wanted to create a company that would employ black people and nurture them so that they could become successful managers and future business leaders. Sekunjalo’s motto was and still is ‘people before profits’; and the primary commitment was to grow black people and the economy of the country.
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Sekunjalo’s investment philosophy is to follow sound business principles and practices in its quest to create wealth for all its shareholders. “We identify and promote entrepreneurs with potential and flair in our prospective business ventures. At the same time, Sekunjalo’s investment philosophy is value-driven and we are always aware of the need to maintain and strengthen corporate governance,” CEO Khalid Abdulla has said. A cornerstone of Sekunjalo’s philosophy is to boost previously marginalised groups by creating employment and transferring skills. In short, it has become an investment holding company that seeks to empower individuals and communities through profitable investments. Ideally it likes to acquire a controlling interest in the companies it helps, but it is happy to acquire strategic noncontrolling stakes, just as long as Sekunjalo is able to influence the business processes and add value to create wealth for stakeholders and, above all, achieve transformation. Over the years, the company has inevitably gravitated into a number of vertical markets, and currently has investments in healthcare, marine, ICT and biotechnology. Telecoms is one of South Africa’s most vibrant sectors, in which Sekunjalo has secured an important stake with investments in Nokia Siemens and BT. In 2007 Sekunjalo made its first foray into the telecoms space by taking a 26 per cent stake in network services group Nokia Siemens Networks Holdings RSA. The BT deal in 2008 saw the investment company gain a 30 per
cent stake in BT Communications Services SA (BTSA) for more than R27 million. BT sees South Africa as an attractive, growing ICT market and is focusing on serving the increasing requirements of the local multinational and global companies that are expanding their presence into South Africa and the rest of Africa. It is an interesting illustration of the twin motivators for overseas investors—market capture and compliance. “When we started looking for a BEE partner two years ago, we wanted someone who could complement our business strategy,” said Stephan Grant, BTSA’s business manager for IT services and finance in South Africa. “Sekunjalo has access to a number of multinational corporations and government contracts which are BTSA’s target markets.” However, Grant admitted that BT couldn’t enter the market without developing a credible BEE scorecard. “South Africa is a fast growing telecoms market and we saw it as imperative that we get a BEE partner to expand our reach and also to meet government regulations.” In a further boost to its involvement with high powered global companies working in South Africa, Sekunjalo announced in June that it had taken a significant share in the defence company Saab South Africa, in a deal that will give it 25 per cent voting rights and five per cent of profits, as well as the right to two boardroom seats. Saab CEO and president Åke Svensson commented that: “With Sekunjalo as a strategic partner Saab will further strengthen its position in the South
Sekunjalo Investments Ltd
Cliffe Dekker Hofmeyr As a full-service business law firm, Cliffe Dekker Hofmeyr is able to assist Sekunjalo with the full range of business legal services to support its strategic and operational needs. We offer clients the advantage of one law firm with the depth of resources, capabilities and experience tailored to their specific needs, wherever they do business—in South Africa, across Africa and globally.
African market.” Saab has been present in South Africa for more than 10 years and has grown the South African business to serve an impressive list of clients specifically within government and the public sector, both of which are expected to grow further with this partnership. Now, the 13 year old company has turned its
early vision into reality. On June 10 2010, Sekunjalo was named the country’s most empowered company in the Financial Mail/Empowerdex Top Companies Awards for 2010. While the award considers empowerment factors (such as black ownership, black management and employment equity) when deciding its scores for companies, additional factors such as employment equity, skills development, preferential procurement, enterprise development and socio-economic development are also taken into account. When he heard about the award, Survé responded by saying he was mainly pleased by the high ranking that Sekunjalo received for the areas of enterprise development and socio-economic development, which recognises the company’s efforts in working towards finding solutions to poverty and unemployment in South Africa. www.sekunjalo.com
SEKUNJALO INVESTMENTS LTD
www.sekunjalo.com