Global software giant Microsoft expects to reveal the successful bidders for its R500 million empowerment programme at the end of next month.
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 US-based company will not be selling local equity in order to meet SA's empowerment targets, but has rather entered into an equivalency deal.
Microsoft says several hundred start-ups filed applications for the funding, which is linked to business development expertise that will also be provided by the software giant.
Kethan Parbhoo, Microsoft SA's equity equivalence manager, says the company is pleased with the number of applications. He says Microsoft has yet to decide how many companies will benefit from the empowerment programme.
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.
The selection panel received more than 600 applications from prospective companies that met the criteria in response to the nationwide request for proposals, says Microsoft. At the moment, the panel has created a shortlist of possible companies, and is busy with final evaluations under the supervision of auditing firm KPMG.
Parbhoo explained in April that Microsoft aims to “create a new model of entrepreneurship and develop a new economy for software”. Only a limited number of companies will be selected, but these will be aided to grow from backyard operations to multinational competitive firms.
Successful companies will be named at a launch event on 31 August.
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