Equity Africa unlocks opportunities in R200 billion (US$30 bn) charter space and looks to create local and global partnerships.

Equity Africa has been involved in the transformation of the South African economy, since 1998. Although the Broad Based Black Economic Empowerment Act and its associated industry charters were only promulgated in June 2004, socio-economic transformation in South Africa has been contemplated since the election of the new Democratic Government in 1994.

The release of these charters has brought greater clarity and defined targets and commitment from all key sectors in the South African economy. Through their negotiation and promulgation, in excess of R200 bn (US$30 bn) has been committed by relevant corporates and multinationals across the key pillars of the charters (including indigenous ownership, enterprise development, social development, skills transfer and procurement).

The resultant charter implementation framework and measurement of compliance provides a tangible platform for Equity Africa to partner with obligated companies to design and deliver sustainable, commercial solutions to transformation imperatives. This is evidenced through the relationship in place with one of the world’s largest gold mining companies, originating from South Africa.

We recommend the “South Africa, Alive with Possibility” site for anyone who is interested in further information about the industry charters. http://www.southafrica.info/doing_business/trends/empowerment/charters.htm

Africa has been at the centre of the world’s political focus in recent years. The focus on governance within the Africa, and the world at large has been on the increase. The promulgation of the charters has created governance standards for all signatories, as obliged parties have a standard scorecard against which to report. This has bought further stability across many key sectors, which combined with defined performance targets has reduced South Africa’s country risk.

South Africa has been classified as one of the strongest emerging market economies, with a currency to match. Further, the positive economic fundamentals of contained inflation, good economic growth, low interest rates, and a fairly strong and stable currency, has made South Africa attractive to foreign investors. The recent conclusion of Barclays’ acquisition of 53.96% of Absa Bank, further underpins the positive sentiment toward investing in South Africa.

Since the mid 1990’s, African economies have been recording growth rates that exceed world averages. As the SME sector within Africa expands, South Africa is acknowledged as the springboard for investing into African economies.

On the 10th August 2005 the planned R500 million agribusiness fund Agrihold, an independent fund focused on delivering against the sustainable development charter obligations, was formally announced. The Agrihold initiative is being driven by Gold Fields in association with Equity Africa.

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