Microsoft SA will today, Tuesday, announce the names four successful black-owned companies that will receive an investment injection as part of its black empowerment “equity equivalence” deal.
It has taken months to get the deal off the ground, and Microsoft SA MD Mteto Nyati says the nature of the investments has evolved and changed over the months the software giant has been in discussions with the department of trade and industry.
Microsoft, like many US-owned technology companies, says it could not give away equity in its SA subsidiary and has been working with the department on the investment plan.
The department has kept tight control over the plans because, Nyati says, it had to “make sure that the companies Microsft has chosen will get the best out of the investment”.
Originally, Microsoft SA was to pump about R70m/year into about 10 black-owned businesses. Now, it says, it will invest an amount equal to 4% of its annual turnover.
“This will see a much larger investment in the companies than under the original plan.”
Nyati says he can’t reveal exactly how much money each company will receive as part of the programme. Microsoft will work with the companies to develop their business plans. “These plans will reveal how much exactly they will receive,” he says.
Microsoft has negotiated clear objectives with the department, including job creation.
The four companies that have been chosen are from Cape Town, Johannesburg, Durban and Pietermaritzburg. They are active in security, health care, education and gaming. — Candice Jones, TechCentral
- TechCentral will provide more details after the announcement on Tuesday