Ericsson South Africa has entered into a shareholding agreement with Ringgold Consortium, whereby Ringgold has acquired a 25,1% equity stake in the company as its broad-based black economic empowerment (BBBEE) partner.

Chaired by Gift Mphefu, Ringgold Consortium was established as a special purpose vehicle by young professionals active in the information and communications technology (ICT), engineering and financial services sectors.

Under the agreement, Mphefu and his co-shareholder Thabi Leoka have been appointed to the Ericsson South Africa board as non-executive directors.

Magnus Mchunguzi, MD of Ericsson South Africa, says: “This announcement follows an extensive process to identify a partner who shares our commitment, our vision and philosophy. We look forward to working with our new shareholders and we’re confident that our partnership will further establish Ericsson as a preferred business partner in South Africa.”

Mphefu adds: “Ringgold is excited at the opportunity of working with a global leader that has revolutionised the way people communicate and connect. We look forward to being part of this journey that uses the transformative power of ICT to make a positive difference in our communities.”

Other Ringgold shareholders are Calvo Phedi Mawela and Diliza Mbete.