Heavy equipment manufacturer Bell Equipment has signed a black economic empowerment (BEE) agreement with SiBi Capital, an entity entirely owned and managed by black women.
When concluded, SiBi Capital will hold 22.5% of Bell Equipment Sales South Africa (Bessa), the wholly owned subsidiary of Bell Equipment. Bessa provides sales and aftermarket support for Bell-designed and -manufactured products, as well as for strategic alliance partner products, in South Africa.
A further 7.5% stake in Bessa will be held by the newly formed Bell Equipment Foundation, a broad-based trust with black women as its beneficiaries, while Bell Equipment retains 70% ownership in Bessa.
SiBi Capital is represented by Bharti Harie and Sindi Mabaso-Koyana, who each own 50% of the entity.
Bell CEO Gary Bell explained that the agreement was structured to pursue real transformation, while aligning the company’s business strategy with government's economic transformation policies.
He added that this would place Bell in a position to be the only yellow equipment company that produces locally, allowing its customers to claim the benefit of buying products from a 30% black women-owned entity. This could potentially earn them an additional four points in their overall broad-based black economic empowerment score, which, in turn, when verified, increases their ability to bid for and win contracts.
"It was necessary to create a sustainable funding structure that is not reliant on external finance. We believe this objective has been met and that we can create a long-term relationship with SiBi Capital, through Bharti and Sindi, who can add real value to the Bessa business," said Bell.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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