East London IDZ realises BEE objectives

Target of 60% BEE in all its contracts set for 2004/2005 financial year Kevin Mayhew THE EAST London Industrial Development Zone (ELIDZ) has recorded impressive results in piloting black economic empowerment and introducing employment equity programmes to address racial and gender imbalances. According to its latest on-line newsletter for October, reorganisation to meet future challenges has achieved gains both in terms of ethnicity and gender. A comparison of pre- and post restructuring employment profiles in the organisation shows gains for both African males and females, which today comprise 36% and 26% respectively of its employees. It further notes that the company has been able to strengthen its capability in a number of areas which include the key functions of finance and business development. Critical to its future growth, it has also extended its capability to enhance zone operational product delivery through the development of dedicated Investor Services. Regarding Black Economic Empowerment (BEE), the company reports that between May 2003 and March 2004 it awarded contracts valued at R164m for the construction of bulk infrastructure, installation of walling and fencing and the construction of a major electrical substation. All companies awarded contract business had a BEE component. Forty percent of these were fully black owned and the balance had a BEE element of 30% or more. The ELIDZ has set a target of 60% BEE in all its contracts for the 2004/2005 financial year. Of those contracts 30% will go to small and medium enterprises. “This is our way to say that we do not just want to talk about BEE and SMME development, we want to do something about it,” said ELIDZ chief executive officer, Simphiwe Kondlo. To this end the company’s social investment policy now focuses on SMME development and education and training as the means to creating maximum impact and rewards from the social investments. “The ELIDZ has created an initiative to develop its SMMEs. This, however, does not mean just giving them work to ensure that they are sustainable. Part of this development initiative is exposing SMMEs to broader industries within which they work to give them an opportunity to market themselves,” explains communications and public relations manager, Diane Stap. It was in this spirit that ELIDZ took three of its service providers to an SMME exhibition and conference held in Johannesburg recently to expose their capacity to a broader audience.