Madala & Associates, a majority black female-owned and BB-BEE Level 1 company, has spoken out at what they view as “a failing BB-BEE and business transformation process” in South Africa.
Founded in 2012, Madala & Associates more recently acquired a 52% shareholding in Rifle-Shot Performance Holdings (RSPH).
CEO of Madala & Associates and recently appointed business development director at RSPH, Dilley Naidoo says his organisation was alarmed at the dismal process of transformation in the country and conducted an in-depth analysis of the overall failings of the process to date.
Results of the survey suggest many so called BB-BEE deals were largely a “marriage of convenience” between existing established businesses and an incoming BEE partner. The majority were short term transactions based on a deal by deal basis; there was lack of synergies, chemistry and common values amongst shareholders and generally deals were based on individual vested interest.
“There was definitely no long term sustainable business transformation plan to incentivise and benefit ALL stakeholders, including lower paid employees and those in middle management positions,” says Naidoo.
Madala & Associates’ own primary objective is one of investing, adding value and creating long-term sustainable businesses that contribute to overall skilled job creation, capacitation, and business education in South Africa.
Naidoo says in order for the country’s BB-BEE and business transformation process to succeed there needs to be a clearly defined strategy to only invest in existing companies who offer niche products and who have a proven track record.
“Partner with organisations whose existing shareholders are committed to both a BB-BEE and business transformation programme, and who embrace joint synergies for South Africa’s demographic inclusion, for both an apprenticeship and graduate recruitment programme,” Naidoo says.
“Madala & Associates has locally designed training programmes that include mentoring, coaching, capacitation and skills development, across all levels from entry-level to executives.”
“We believe by encouraging skills development within the business environment, this will ultimately lead to the reduction of unemployment levels, will aid in the much-needed transformation of the South African economy and ensure our participation in the global market,” he adds.