Sekunjalo Investments sets the benchmark for empowerment in the general industrials sector. It has topped its sector for the second year in a row. CEO Mo Kajee says though the company uses the broad-based black economic empowerment (BEE) codes as a guideline, it prefers to outperform the minimum requirements. It also sets the target high for its subsidiaries.
Sekunjalo has majority black economic interest at about 68,8% of total holdings. Kajee says that about 92% of voting rights are held by blacks.
The company posted revenues of about R450m last year. Sekunjalo is a diversified investment firm with holdings across many sectors. It has investments in fishing, health care, financial services, information technology, communication and biotechnology. Its main board comprises nine directors, four of whom are black executive directors. It also has two black female nonexecutive directors.
With a board such as this, it would follow that it is not only Sekunjalo's executive management that has an impressive transformation track record. Its overall employment equity, procurement and enterprise numbers also display a genuine commitment to empowerment. Out of Sekunjalo's staff complement of 1 400 employees, 133 are at professional management level and out of that 58 are black males and 19 black females. Its junior management level also has suitably qualified staff from designated groups. Of its 103 junior managers, 69 are black males and 20 are black females.
Kajee says Sekunjalo takes empowerment and transformation seriously at all levels. It sets targets for its divisional heads' key performance areas with regard to procurement and gender transformation. Sekunjalo's game plan is to push the transformation agenda further, says Kajee. It also intends to use the group to facilitate transformation in small, medium and micro enterprises (SMMEs) and also to stimulate enterprise development.
The general industrials sector has no sector charter but Sekunjalo makes every effort to not only comply with the requirements of each of its underlying holdings' sector charters, but also to exceed their targets. It does not just blindly follow the code requirements, but also looks at peer reviews for transformation targets. For example, says Kajee, while the health sector requirements are specific, the fishing charter is long-term and "life-based". So the benchmarks in those sectors are quite high.
At the skills development level, it also offers bursaries and facilitates developmental programmes for its staff. The nature of its business means it is in industries as diverse as ICT and manufacturing, so the human capital of its subsidiaries is varied, being industry specific. Kajee says it needs everything from highly skilled individuals to factory floor staff. But there are opportunities for staff at every level. For example, manufacturing can have very low entry level requirements for skills but staff can upgrade their skills fairly quickly.
It is this diversity of developmental requirements that means Sekunjalo must offer adult basic education & training interventions alongside more advanced programmes. And where it does offer onsite training, every effort is made to ensure that businesses support participating individuals. Sekunjalo's facilities include site transport for programmes taking place after hours because staff have also shown their commitment.
But Kajee still thinks there is more to be done. He would like to see improvement in the transformation of Sekunjalo's middle to senior management level, which he says is not where it should be. Procurement spend poses another challenge.
According to Kajee, the biggest challenge on the procurement side is the difficulty of breaking through as a black business. He says questionable practices are rife with regard to procurement, such as companies flying clients to World Cup events. Such perks are corrupt and must stop, he says, as they prevent people from thinking rationally about procurement decisions. As a group, Sekunjalo tries to ensure its people apply their minds to their procurement spend.
Kajee says a lot more can be done by both the department of education and corporations in skills development. He is most worried about computer literacy levels. This is one of biggest challenges in SA, he says. Aside from this, the cost of bandwidth and the equipment itself makes it out of most people's reach. Communication simply needs to be cheaper, says Kajee, especially Internet access - which provides both education and information. Kajee says not enough is being done to make ICT available to everyone.
For Sekunjalo, transformation is not an issue for the back burner. Says Kajee: "If we do not bridge the economic divide the future will be unstable," he says. Income disparities cause developmental problems for states the world over.
