You have to take an innovative approach to black economic empowerment (BEE), according to Alan Olivier, CEO of Grindrod Limited “According to the Schools Needs Register,” he told FTW, “SA has about 28 000 schools of which 21 000 have unsatisfactory infrastructural facilities. And 50% of our schools have no electricity, over 9 000 schools have no access to telecommunications, 30% have no water, and 10% have no sanitation.” Against this background in 2001, Adopt-a-School Foundation was established with the aim of assisting schools to find solutions to their challenges and partnering with sponsors to create sustainable learning institutions. Following the Olivierexpressed philosophy, when Grindrod Freight Services (GFS), a wholly owned subsidiary of Grindrod Limited, concluded a broadbased black economic empowerment (B-BBEE) transaction, it did so in an innovative fashion. “Instead of inking a corporate deal with the usual well-known empowerment partners, GFS set its sights on a holistic B-BEEE strategy – and welcomed black ownership through the sale of 25% plus 1 share of its subsidiary, Grindrod SA (GSA) to Calulo Petrochemicals (15%) and the Adopt-a-School Foundation (10%). GSA includes the majority of Grindrod’s 100% owned, SA-based operations (Grindrod Terminals, Grindrod Intermodal and Grindrod Logistics). “In selecting its partners,” said Olivier, “Grindrod balanced the need to incorporate strategic commercial partners into the business, whilst at the same time facilitating and supporting the sustainability of worthy broad-based enterprises. “The intention of implementing a transaction was not only to comply with the codes of good practice on B-BBEE, but to establish a sustainable social investment that will make a difference in the lives of disadvantaged South Africans.” A successful business relationship with Calulo has now been developed, and Grindrod has already partnered with it in the group’s SA marine bunkering and coastal shipping operation. “They know the industry and add significant commercial value to the deal,” Olivier added. “The third party in this transaction, Adopt-a-School Foundation, fits very well with Grindrod’s social responsibility focus which has always been to support education initiatives.”
