Heavy equipment manufacturer and distributor, Bell Equipment, has announced the conclusion of a Broad Based Black Economic Empowerment (BBBEE) agreement with SiBi Capital (Pty) Ltd, an entity entirely owned and managed by black women.
Explaining the rationale behind the new agreement, Bell Group CEO, Gary Bell, says the deal has been specifically structured to pursue real transformation through the economic empowerment of black women, who will add value to the company, while also aligning the company’s business strategy with government's economic transformation policies.
Bell says this will place Bell Equipment in a unique position of being the only yellow metal equipment company that produces locally and allows its customers to be able to claim the benefit of purchasing from a 30% black women-owned entity. This could then potentially earn them an additional four points on their overall BBBEE verification, which in turn increases their ability to bid for and win contracts.
In terms of the agreement, SiBi Capital holds 22,5% of shares in Bell Equipment Sales South Africa (BESSA), a wholly-owned subsidiary of Bell Equipment Limited. BESSA provides sales and aftermarket support for Bell designed and manufactured products, as well as strategic alliance partner products in South Africa. This includes all the South African Customer Service Centres, the company's subsidiaries in Namibia and Swaziland as well as Bell Finance, the joint venture with Wesbank.
SiBi Capital is represented by Bharti Harie and Sindi Mabaso-Koyana, who each owns 50% of the entity. A further 7,5% stake in BESSA will be held by the newly formed Bell Equipment Foundation (BEF), a broad-based trust which will have black women as its beneficiaries, while Bell Equipment Limited retains 70% ownership.
“It was necessary to create a sustainable funding structure that is not reliant on external finance. We believe that this objective has been met and that we can create a long-term relationship with SiBi Capital, through Harie and Mabaso-Koyana, who can add real value to the BESSA business,” says Bell.