7 Top JSE Companies - Their Transformation Journeys

Great Strides Have Been Made

By Sinazo Mkoko

In South Africa the government has made headway towards economic transformation through black economic empowerment legislation, affirmative action programmes, and budget redistribution. This article takes a look at standout companies in the private sector that continue to make great strides in realising the vision of the Constitution, paving a path to inclusive economic growth and development. Impumelelo, Top Empowerment lists 7 of the top companies in a range of t sectors that have shown commitment to economic transformation in South Africa.

Sector: Financials

Firstrand Group

Level 1 BBBEE

The FirstRand Group states that they view transformation as a crucial strategic priority for their business and the communities they serve. It bases its strategy on the following six pillars:

A Better Macroenvironment

The financial institution states that they aim to improve the macroenvironment by fostering positive attitudes and confidence in South Africa. The FirstRand Foundation distributes 1% of its after-tax profits to selected socio-economic development programmes. FirstRand provides volunteer opportunities with matched funding. “FirstRand’s philosophy embraces the concept of diversity,” they say.

Investment Imbalances

FirstRand shares that they contribute to the redress of investment imbalances by financing development infrastructure, affordable housing, and agriculture, as well as providing previously disadvantaged people with costeffective and innovative access to financial services in previously inaccessible areas.

Employment Equity

They aspire to increase the representation of black people and provide them with an empowered and diverse environment and they have started several funding initiatives to achieve this.

“The Group encourages employees to develop their skills, and we offer leadership and women development initiatives to build future leaders. Supporting the studies of unemployed black people will have a positive effect on society.”

Development of Black Business

FirstRand states that they procure from BEE-rated enterprises, with a special emphasis on black-owned and black women-owned businesses. “There is also support for black fund managers. Mentoring is provided through the group’s enterprise development initiatives. The supplier development initiative was implemented at a Group level.”

Equitable Ownership

According to the Group, they handed considerable ownership of the company to black partners. “FirstRand’s direct black economic interest is 28.96% and black female economic interest is 12.83%. The Group continues to facilitate the financing and ownership transfer of other companies through BEE transactions through RMB. Over the past decade, RMB has been known as one of the leaders in both financing and advising on BEE deals,” they said.

Scorecard

The generic FSC BEE scorecard has the following components:

• Ownership;

• Management and control;

• Skills development;

• Preferential procurement;

• Empowerment financing, supplier and enterprise development, including black business growth financing (BBGF);

• SED and consumer financial education; and

• Access to financial services.

Nedbank Group

Level 1 BBBEE

The Nedbank Group says it prioritises transformation as a moral and corporate imperative to promote inclusivity, equality, and sustainability for all. Nedbank Boardmember and Chairperson of the Nedbank Group Transformation, Social, and Ethics Committee, Linda Makalima, said the Group recognises the importance of banks in fostering a more inclusive economy that benefits society.

“We remain committed to living our purpose of using our financial expertise to do good by investing in projects and programmes that create jobs, enable structural reform, and facilitate a just transition that will safeguard the future and sustainability of our country. We continuously embrace our responsibility to contribute towards economic growth since impactful change and transformation require collective, practical action,” said Linda.

The Group has achieved level 1 BBBEE contributor status for the fifth consecutive year since the amended FSC was gazetted in 2017, demonstrating the effectiveness of our approach to transformation.

“We have made a long-term commitment to South Africa’s future, and we go beyond the numbers to fund innovative solutions and create lasting change.

“We continue to support SA’s national agenda while also embracing and contributing to the amended FSC’s regulatory framework, which guides the transformation commitments and efforts of the financial services sector.”

Sector: Life Insurance

Discovery Limited Group

Level 1 BBBEE

Discovery Limited Group states that they comply with the legislative regulations that govern their business operations. They support regulators’ commitment to protecting stakeholders’ interests and promoting economic and social progress.

A Level 1 BBBEE contributor, the Group shares that they also measure the perception of the workforce on the inclusivity of our culture and environment through the annual Employee Experience Survey and at the executive level with 360 reviews. “The inclusivity score from the Employee Experience Survey is included in our management incentive system.”

Several initiatives are underway to advance their transformation objectives, including:

• Developing and rolling out a diversity and inclusion programme to communicate Discovery’s transformation vision and mandate and embed transformation into business processes.

• Unconscious bias training to create awareness of systemic biases that negate diversity and inclusion efforts.

• Working with business units to formulate developmental plans for high-potential employees

• Collaborate with organisations that focus on the recruitment of scarce skill roles.

• Amplifying employees’ voices to enhance inclusivity through, for example, focus groups and employee resource groups.

Sector: Telecommunications Service Providers

MTN Group

Level 1 BBBEE

In 2023, MTN Group Limited retained its Level 1 B-BBEE contributor status for the fourth year in a row. This, they said, is evidence of MTN Group’s commitment to transformation in South Africa.

The B-BBEE contributor status considers both the MTN South Africa operating entity and the MTN Group’s South African operating entities. MTN Group President and Chief Executive Officer, Ralph Mupita, said in their work to create the MTN of tomorrow, they are committed to fulfilling their strategic priority to create shared value.

“This incorporates a focus on increased localisation across our markets, including in South Africa, where we were established at the dawn of democracy in 1994 as a leader in transformation.”

“Retaining our Level 1 B-BBEE Contributor status is critical. We intend to take steps not only to retain this status in the future but also to put more emphasis on our preferential procurement and localisation efforts,” he said.

According to the Group, notable improvements for 2022 were in their ‘Management Control’ and ‘Preferential Procurement’ scores. “The ‘Management Control’ improvement was a result of the consistent alignment of MTN’s recruitment practices to the targets related to the economically active population (EAP) in South Africa. The improvement in the ‘Preferential Procurement’ score was mainly due to an increase in procurement spending with exempt micro enterprises (EMEs), qualifying small enterprises (QSEs), and ‘Designated Groups’,” the group said.

Vodacom (PTY) LTD.

Level 1 BBBEE

Over the years, Vodacom has had an impressive BEE trajectory. Between 2010 and 2019, the company was between BEE Levels 4, 3, and 2, and from 2020 until present, the company has maintained BEE Level 1.

Group CEO Shameel Joosub said that as a company with deep local roots, they fully embrace transformation and “its ideals, which, among other things, aim to provide women with equal work opportunities so they can contribute meaningfully in the mainstream economy.

“We are serious about the transformation agenda and the development of South Africa, and we won’t be deterred in our resolve to play an active role in moving South Africa forward.”

In a letter published by Business Day, Vodacom’s head of external communications, Byron Kennedy, stated that Vodacom is one of the most transformed companies on the JSE, with 76% of its employees being black.

“Importantly, as evidence of our commitment to transformation, in June 2018 we introduced the largest black economic empowerment (BEE) transaction in the telecommunications industry to date, at R16.4-bn. The transaction resulted in YeboYethu (RF) becoming the third largest shareholder in Vodacom Group. YeboYethu shareholders comprise RBH, Mineworkers Investment Company, Vodacom Siyanda Employee Trust, and more than 85 000 ordinary black South Africans,” he said.

Sector: Construction

VEA Road Maintenance and Civils (PTY) Ltd

Level 1 BBBEE

Passionate about inclusivity, VEA believes in uplifting individuals and communities to shape a brighter future for our country. A proud Level 1 BBBEE contributor with 51% black ownership, the company is committed to bringing about positive change through empowering activities. The company states: “Our pledge to achieve our employment equity objectives is fueled by our genuine commitment to fostering an inclusive work environment where everyone has the chance to thrive and succeed.”

The company’s journey dates back to 2008, when Johannes Mogola, who is now the Director of Logistics and Telecommunications, set out on a quest to make a difference in his community by increasing road quality, reliability, and safety. He was joined by like minded individuals who also had the same calling.

In the beginning, VEA Roads served only a handful of clients, but their commitment and excellence soon caught the attention of many more clients. “Today, our team has grown exponentially and has completed road maintenance contracts worth over R4-billion. This growth not only reflects our success, but it also speaks to the team’s ability to create meaningful opportunities for others,” the company said.

The company shares that they have directly employed over 2000 individuals and empowered more than 600 Small Medium and Micro Enterprises (SMMEs) and Exempted Micro Enterprises (EMEs). “We take pride in knowing that our success is not just about our business; it is also about our commitment to our people and communities. We are proud to say that our relentless pursuit of excellence has created a brighter future not only for our business but for all those who partner with us.”

Raubex Group Limited

Level 1 BBBEE

Established in 1974, Raubex was listed on the JSE in March 2007 and is one of the country’s top infrastructure development and building materials suppliers. The Group is a level 1 B-BBEE company with over 7 000 employees that are committed to guaranteeing high levels of ethics, professionalism, and quality in all of their operations. "We support transformation in the construction industry and are committed to conducting business in a socially responsible and ethical manner, promoting interdependence of performance and transformation, and supporting the communities in which we operate. The group’s employment equity, together with its skills development strategy and enterprise development initiatives, are aligned to South Africa’s economic transformation agenda,” they said.

In their 2021 integrated report, the Group shared that they are proud of their empowerment credentials and the progress they have made with regard to transformation. “The Group scores highly in equity ownership, skills development, enterprise and supplier development, and social economic development elements of the scorecard. The management control element of the scorecard is an area for improvement. The increased focus that the group has placed on training in recent years and moving forward is expected to address this over the medium term.”

Sources: First Rand Group| Discovery Limited |MTN|Vodacom||BD|Raubex Group Limited|VEA|Nedbank