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ESSA GOVENDER GROUP MANAGING EXECUTIVE TELKOM PROCUREMENT SERVICES BLACK ECONOMIC EMPOWERMENT Execution of the ICT Charter 14 May 2004 “A TELKOM PERSPECTIVE”. The South African Reality. 99,7 %. 48 %. 54 %. 57 %. 74 %. 99,5 %. 41 %. 49 %. 99,7 %. 50 %. 57 %. 99,8 %. 99,5 %.
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ESSA GOVENDER GROUP MANAGING EXECUTIVE TELKOM PROCUREMENT SERVICES BLACK ECONOMIC EMPOWERMENT Execution of the ICT Charter 14 May 2004 “A TELKOM PERSPECTIVE”
99,7 % 48 % 54 % 57 % 74 % 99,5 % 41 % 49 % 99,7 % 50 % 57 % 99,8 % 99,5 % 64 % 64 % 27 % 74 % 99,5 % 57 % 77 % 98,8 % 23 % 96 % 45 % 99 % 66 % 79 % 99,9 % 62 % 69 % 25 - 30 % ? ? Telkom’s Strategic Approach to BEE SME Contribution to National Economies Employment is not an objective……..it is a result of SME activity !!!! Source: OECD (1997b)
Enablers Customer Base Facilitation • Capacity Building • Strategic Supplier Alliances • JV’s • JCO • Telkom Foundation • Dissagregation of Contracts • Skills Transfer • Set Asides • Price Preference • Short term Payment etc. Supplier Base SME’s Large Black Suppliers Significant Suppliers • Commitments • Ownership • Affirm.Procure • Employment Equity Etc. Traditional Suppliers The Value Add Proposition for Long Term Sustainability • Corporate Customers • Large Black Suppliers • SME’s • Significant Supplier • Traditional Suppliers Telkom Private Customers (Employment Equity) Creating a business ecological system to support Telkoms business imperative.
Equity Ownership 30 % Telkom = + 10% Management Employment Equity & People Development 45 % Telkom = + 5% Preferential Procurement 10 % Telkom = (10 %) Sub-contracting & Affirmative Procurement 10 % N / A Social Responsibility 5 % N / A TOTAL 100 % How does Telkom Measure up to DTI’s Balance Scorecard
Telkom’s Pledge We will work collaboratively with government and industry to create an effective ICT BEE Environment to further the interests of Black Economic Empowerment in the Socio-Economic transformation process.