Microsoft SA is searching for more companies to empower as part of its R475 million equity equivalency plan.
In May, the software giant announced the first four companies with which it is partnering as the initial step in its seven-year equity equivalency plan, which analysts previously hailed as “unique”.
Microsoft will provide funding and advice to help the companies - BUI, Chillisoft, Home Grown and Maxxor - grow internationally and become globally competitive, but will not take an equity stake in return.
The announcement had been a long time coming, as Microsoft first stated its intention to invest R475 million in a handful of small empowerment companies in the sector last April. The plan was held up while Microsoft and the Department of Trade and Industry ironed out the details of the scheme.
Microsoft has now received a formal certificate from the minister of trade and industry indicating it earned 20 points for the equity equivalent programme, raising its empowerment level from four to two. The highest possible level is one.
The company claims to be the only multinational in SA at level two and points out that the most empowered JSE-listed company is a level three contributor.
Microsoft is embarking on a second public request for proposal process, to recruit additional majority black-owned independent software vendors from 10 June. It aims to sign up at least one new partner, but potentially as many as four or five.
Meanwhile, Vunani Technology Ventures, a subsidiary of Vunani Capital, will work with the first four companies to help them develop business plans. Vunani Technology Ventures provides support and capital to mid-market software entrepreneurs.
Microsoft SA equity equivalent lead Kethan Parbhoo says working with Vunani Technology Ventures to develop the relevant business and investment plans for each company “will become the blueprint for us to invest in other independent software vendors, according to their specific needs”.
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