Kyocera Mita South Africa concludes unique broad-based empowerment deal

After extensive consultations, Kyocera Mita South Africa has successfully concluded a mutually beneficial empowerment shareholding deal with Nozala Investments, one of the country's longest-established empowerment organisations, with a notable, 13-year track record and a firm focus on black women's empowerment.

The deal, signed at the end of April, has been approved and welcomed by Kyocera Mita Corporation, the parent company of Kyocera Mita South Africa. This empowerment transaction means that there is participation by the BEE partner in the whole Kyocera Mita operation in South Africa.

“Kyocera Mita Corporation - Japan will hold 65% of the shares in the new company,” says Wayne Holborn, executive director of Kyocera Mita South Africa. “Nozala Investments will hold 15% and the remaining 20% will be split equally between a trust for Kyocera Mita's black employees and an executive retention trust.

“We are one of the very few office automation companies in the country that are a subsidiary of the manufacturer with direct representation. Kyocera Mita Corporation has taken the forward-looking decision to enter into a direct ownership transaction in support of local empowerment, rather than enter into an indirect empowerment arrangement.”

Kyocera Mita Corporation is thus making a considerable investment in supporting local black empowerment objectives.

“Kyocera Mita South Africa has shown very positive growth figures over the 12 years it has been operating,” says Holborn. “This makes the new arrangement a very significant move on our part, as well as our parent company.”

Beyond shareholding, this deal focuses on training and promotion of black staff and fits well with Kyocera Mita South Africa's ongoing commitments, as evidenced by existing programmes in executive and skills development and social responsibility - such as support for the Potter's House Training Centre in Soweto.

“In terms of the DTI BEE scorecard, this puts us on Level 4,” says Holborn. “This is a great opportunity for our company to expand in all markets and make further contributions towards transformation by working with our dealers to help them meet DTI BEE standards.”

The immediate advantage for Kyocera's dealer channel is that their purchases from the company now meet government BEE compliance requirements.

“We performed extensive research, in association with KPMG, to short-list potential BEE partners,” says Holborn. “With their exceptional track record, Nozala Investments were the organisation that came out on top - not least of all because they share common values and commitments with ourselves and Kyocera Mita Corporation.”

“We have always been looking for an opportunity to get into the office automation sector,” says Lorato Phalatse, executive director of Nozala Investments. “The chance to do this with a well-established, truly global player was very attractive.

“Another plus is that Kyocera Mita South Africa is a local company, run and managed by South Africans. We are confident that, with our reputation in both private and public sectors, we can add value by supporting Kyocera's growth across all local markets.

“There is a common culture between the two companies, which clearly showed in all our dealings with Kyocera Mita South Africa and also with the representatives of Kyocera Mita Corporation, who took the trouble to come here to meet with us. The chemistry is very positive, the mutual commitment has been shown by the efficiency with which the process was handled and we look forward to the future prospects.”

This deal is a good fit for both parties.

Holborn comments: “The criteria included in our search for a partner covered the following requirements: the company should be black-owned and, preferably, owned by black women; they should have a solid track record and familiarity with our industry; and they should be able to add real value to our business.”

“Nozala Investments scored well on all the above and we look forward to a lasting relationship that will create great opportunities for all parties far into the future,” Holborn concludes.