Internet Solutions’ (IS) strategic focus is to impact and influence transformation in all our business interactions – with our internal and external stakeholders and in the markets in which we operate. As a wholly owned subsidiary of Dimension Data, IS is aligned with and contributes towards the Group’s transformation targets as detailed below.
Black Economic Empowerment (‘BEE’) in South Africa
Dimension Data has aligned its BEE strategy to the South African Department of Trade and Industry's Codes of Good Practice issued in terms of Section 9 of the Broad-Based Black Economic Empowerment Act No. 53 of 2003 ('the Codes').
In the year ended 30 September 2011, we maintained our focus on all of the major contributing elements, with significant improvements in the areas of enterprise development and socio-economic development.
During the financial year our suppliers were provided with assistance in becoming BEE compliant with the aim of contributing towards Enterprise Development as well as increasing the percentage of BEE suppliers that Dimension Data does business with.
2009 marked the launch of our Employment Equity and Skills Development Forum whose mission includes promoting the equitable representation of employees from designated groups through recruitment, training, retention strategies and support mechanisms. Dimension Data has always believed in empowering up and coming entrepreneurs and through our enterprise development initiatives we have successfully done so.
Our B-BBEE initiatives aim to:
- Continue to transform our organisational and employee profile at every level, as per our employment equity plan, to reflect the demographic representation of South Africa across race and gender; and
- Create capacity in our broader industry, through facilitating skills development from secondary, and specialised training to tertiary level and capacity creation through preferential procurement and enterprise development, joint ventures and investments.
Highlights of the advances we made in the year ended 30 September 2011 include:
- Equity Ownership. In accordance with the Codes, Dimension Data (Pty) Limited is regarded as having 27.06% voting rights /economic interest of black people, and the percentage of voting rights/economic interest of black women is 2.07%. We hold a Level Three B-BBEE Contributor Rating and a 110% Procurement Recognition Level, qualifying Dimension Data (Pty) Limited as a Value Adding Enterprise;
- Management Control. We continue to see operational management participation as the heart of our BEE strategy. In the year ended 30 September 2011, 58.33% of the executive directors of Dimension Data (Pty) Limited represent previously disadvantaged individuals (PDIs); compared to 53.85% in the year ended 30 September 2010;
- Employment Equity. The ultimate goal for Dimension Data is to have a demographic profile that is reflective of our areas of operation. This profile includes both racial and gender complements. For the year ended 30 September 2011, Dimension Data (Pty) Limited, South Africa, attained the following percentages of PDI employees:
- 18.94% (18.62% in 2010) of employees at senior management level;
- 27.54% (25.90% in 2010) of employees at middle management level; and
- 58.16% (58.41% in 2010) of employees at junior management level.
- Skills Development. Ongoing training and skills development forms the bedrock of transformation, and is an imperative for any company aiming to develop a competitive edge. Dimension Data recognises the long term benefits of keeping employees motivated and more adept. During the year ended 30 September 2011, R36,632,369.00 was spent to provide opportunities for further education, learning and development activities;
- Preferential Procurement. Various initiatives are in place, including preferential payment terms for black exempted micro enterprises and qualifying small enterprises of 15 days and BEE vendor education to ensure that our suppliers become BEE compliant. In the year ended 30 September 2011, 74.86% (versus 67.57% in 2010 and 50.7% in 2009) of Dimension Data (Pty) Limited's total procurement spend was channelled to BEE suppliers. Each supplier is vetted through a verification agency accredited by the Association of BEE Verification Agencies to determine their 'Broad-Based Black Economic Empowerment' status;
- Enterprise Development. Dimension Data acknowledges the regional realities of the countries we work in. One of the key realities in South Africa is the lack of BEE ICT companies capable of supporting large enterprise and public sector clients. We are committed to addressing this challenge through our Enterprise Development Programme, and in the year ended 30 September 2011 contributed 3.05% of net profit after tax from Dimension Data (Pty) Limited, South Africa, to this programme and
- Socio-Economic Development (Corporate Social Investment). Dimension Data has made the decision to focus the majority of its socio-economic development spend on initiatives that focus on education and access to ICT. Details of some of these initiatives are included in the Community Initiatives section above. In the year ended 30 September 2011 Dimension Data (Pty) Limited has spent over 2.42% of net profit after tax on these initiatives.