Bell Equipment, heavy equipment manufacturer and distributor, has announced the conclusion of a Broad Based Black Economic Empowerment (BBBEE) agreement with SiBi Capital (Pty) Ltd, an entity entirely owned and managed by black women.
Bell Group CEO, Gary Bell, says the deal,which has been specifically structured to pursue real transformation through the economic empowerment of black women, will not only add value to the company, but also align the company’s business strategy with government’s economic transformation policies.
According to him, the move will place Bell Equipment in a unique position of being the only yellow metal equipment company that produces locally and allows its customers to be able to claim the benefit of purchasing from a 30% black women-owned entity, potentially earning them an additional four points on their overall BBBEE verification. This, in turn, increases their ability to bid for and win contracts.
In terms of the agreement, SiBi Capital holds 22,5% of shares in Bell Equipment Sales South Africa (BESSA), a wholly-owned subsidiary of Bell Equipment Limited. BESSA provides sales and aftermarket support for Bell designed and manufactured products, as well as strategic alliance partner products in South Africa.
This is inclusive of all the South African Customer Service Centres, the company’s subsidiaries in Namibia and Swaziland as well as Bell Finance, the joint venture with Wesbank.
SiBi Capital is represented by Bharti Harie and Sindi Mabaso-Koyana, with equal stake of the entity. A further 7.5% stake in BESSA will be held by the newly formed Bell Equipment Foundation (BEF), a broad-based trust which will have black women as its beneficiaries, while Bell Equipment Limited retains 70% ownership.
Bell also explained that the necessity for the creation of a sustainable funding structure that is not reliant on external finance has been met through the move. The OEM believes it can build a long-term relationship with SiBi Capital, through Harie and Mabaso-Koyana, who can add real value to the BESSA business.