Independent empowerment rating agency Empowerdex has awarded MTN South Africa a Level 2 Broad-Based Black Economic Empowerment (BBBEE) rating, in recognition of the strides the company has made in complying with BEE legislation.
MTN South Africa significantly improved its BEE credentials to Level 2, up from the Level 5 rating the company received in 2009. The Level 2 certification ensures that MTN is now classified as “AAA” by Empowerdex.
“This improved rating is testament to MTN’s commitment to being a responsible corporate citizen. It shows our focus on investing in enterprise development, human resources, skills development, and the promotion of equal opportunities.
"The improved rating bears testament to the hard work that MTN has done since the last rating. The MTN Zakhele Share Offer, which gave the black public about 4% ownership of MTN SA, was a resounding success. MTN wishes to thank everyone who worked tirelessly to ensure that our BEE credentials are enhanced,” says Zunaid Bulbulia, chief financial officer of MTN South Africa.
“What this means is that any company doing business with us can now account for 125% of their spend with MTN as BEE spend, which assists that company in its triple bottom-line accounting processes. The new rating covers all aspects of MTN SA’s business and increases our profile in corporate South Africa as a fully-empowered company,” explains Bulbulia.
The Empowerdex rating provides companies with a platform to highlight the progress they have made in increasing enterprise growth, empowering people to be part of the economy, infrastructure development, and skills training.
It also assists companies by providing opportunities for additional procurement contracts. All companies operating in South Africa are required by the government to be compliant and supportive of the BBBEE legislation and its strategies.
“While this rating represents a great improvement as it positions us as a Level 2 contributor, our journey is not yet complete. Over the next few months, we will be striving to improve this even further,” says Bulbulia.
Bulbulia reports that over the past few years, MTN has pursued an aggressive strategy to improve its BBBEE position. The latest development was the launch of the Zakhele share scheme that has resulted in the empowerment of thousands of previously disadvantaged individuals in South Africa.