Global software giant Microsoft is assessing the applications for participation in its empowerment deal, and will announce the selected players shortly.
In April, the software company said it had earmarked close on half a billion rand for its local broad-based empowerment plan over the next seven years.
The empowerment plan is an equity equivalency deal and Microsoft will not be selling local equity in order to meet SA's empowerment targets. However, it will fund start-up enterprises and provide business knowledge to help them become global software players.
Microsoft received more than 680 applications from prospective companies in response to its nationwide request for proposals. Of these, 141 met the qualifying criteria, the company says.
Judging panel
Kethan Parbhoo, Microsoft SA's equity equivalence manager, says these companies will be narrowed down further, and between five and 10 firms will be selected to receive funding. The judging panel has created a shortlist of possible companies, and is busy with final evaluations under the supervision of auditing firm KPMG.
In April, Parbhoo explained the company had set aside R472 million to fund small black-owned software development companies for the next seven years. In return, Microsoft would not be paid back, and will not take up any equity in the start-ups either.
Parbhoo says Microsoft may, at a later stage, invite further applications for funding. However, this depends on changes in the industry, and whether new opportunities arise that the company can take advantage of.
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