Microsoft South Africa has named two more small black-owned software development firms that will benefit from its R475 million broad-based black economic empowerment (BBBEE) equity equivalence programme.
The two companies, iSolv Technologies and Mmapro IT Solutions, join the current four small companies which kicked off the initiative in March this year. The programme aims to grow several black-owned software development companies into global companies over the next seven years.
The two new BBBEE partners were chosen after a second round of applications through a public request for proposal (RFP) process launched in mid-June this year. Both specialise in creating security products for government and enterprise, albeit in vastly differing areas: iSolv in the field of public key infrastructure (PKI), encryption and secure communication, and Mmapro in providing mobile real-time information to traffic enforcement agencies.
Microsoft South Africa managing director Mteto Nyati said the two new partners were closely aligned to Microsoft's strategy of supporting government on the security front by helping integrate technology systems, combat cyber crime and improve the effectiveness of the criminal justice system.
Nyati continued: “Once again this programme has managed to unearth talented black software companies, which through the appropriate funding, technical, operational and sales support, have the potential to grow into large organisations, creating jobs, developing their own IP and growing our economy. This is a true example of successful empowerment.”
The Department of Trade and Industry (DTI) said it was “delighted” to see the progress Microsoft was making with the programme. “At the time of the launch, we said the programme had the potential to boost transformation within the South African ICT sector - and it seems we are well on track to driving our shared vision of creating a strong home-grown South African software industry,” said Sipho Zikode, acting deputy director-general within the DTI.
Kethan Parbhoo, Equity Equivalence lead at Microsoft South Africa, said the first four companies chosen - Chillisoft, Maxxor, BUI and Home Grown Business Integrations - had spent the last six months doing intensive analysis of their businesses, and restructuring themselves to gear up for their planned expansion.
“To date, our investments in the first four companies have been in skills, to help them recruit and hire top black talent, and infrastructure, both IT and non-IT. Some of them have undergone significant restructuring of their business to focus on the right things and be in a position to take new products to market,” said Parbhoo.
Microsoft and its advisor, Vunani Technology Ventures, specialist in small business development, will immediately start working with two new partners to establish their specific needs and to align their businesses to high-growth areas in South Africa and other emerging markets, such as healthcare, education, security, software plus services and mobility, where the company sees the biggest chance of success.
Parbhoo said the company would be reviewing the programme on an ongoing basis, and was likely to issue a call for further partners to join the programme within two years, depending on market conditions and performance.
For more information, visit www.microsoftbee.co.za.
Share
Editorial contacts