Andile Ngcaba, former director-general of the Department of Communications, will head Dimension Data SA`s new black economic empowerment (BEE) consortium.
[VIDEO]The BEE consortium will own a 25% interest in DiData and once the transaction has been implemented, Ngcaba will be appointed chairman designate, with a view to taking over as DiData SA chairman within a year.
He will also be appointed to the boards of DiData`s major subsidiaries, and will be tasked with expanding the company`s penetration throughout Africa.
"Didata is a leading company, with good potential for growth and great people and great technology, therefore I feel it`s where I want to place my future. I`m very excited about this opportunity," says Ngcaba.
"I look forward to helping to grow the business and to forging new relationships across the continent. I foresee strong growth for the business, particularly in terms of the mobile space and within the public sector market."
During his eight and a half years as director-general of the Department of Communications, he is credited with contributing to the restructuring of numerous communications organisations, including Telkom, the SA Broadcasting Association, the SA Post Office and Sentech.
He is an advisor to the Digital Inclusion programme at Harvard University Law School, founder of the Institute for Software and Satellite Applications, and a founder of the Centre for Development of Information and Telecommunications Policy.
"This is not just about empowerment, it is more about bringing in a partner who can add value, experience and knowledge to the company, and Andile exactly fits the profile we are looking for in terms of helping us to grow the African market," says group chairman, Jeremy Ord.
"I think that this is a crucial deal and we are looking forward to working together. I think we`re going to have a lot of fun."
Peter Hird, executive chairman of Didata SA, believes that Ngcaba`s knowledge of the challenges faced by African service providers, his understanding of the technologies that are core to the business and his experience in developing strong partnerships make him the ideal choice.
"Through his contacts, he gives us access to a totally different set of potential board members - people that we just do not have access to at the moment," says Hird.
The Board of Didata has pledged its support towards the implementation of BEE and a commitment has been made to a 40% level of operational control by black executive directors by 2006.
The current percentage is 16.6% and the organisation is now procuring at least 40% of non-stock purchases through black-owned companies, as well as spending 2.5% of its annual net profit contribution after interest and taxes on Corporate Social Investment.
"Without saying too much about the structure of the deal, we can confirm that it is a vendor financed transaction with some upfront investment. We are very aware of our shareholders needs and so the valuation has been done in a manner that is fair to all parties," says Ord.
"It is not just a straight buy and sell process - rather it is a partnership going forward, so it is a transaction that has been put together in such a manner that all interests have been considered."
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