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Siemens tackles BEE

Johannesburg, 15 Oct 2004

Siemens Southern Africa has launched a programme to address a shortage of black technology suppliers, which will in turn boost its own procurement profile.

"Preferential procurement has created opportunities for black entrepreneurs to participate in the development of SA's economy," says Siemens group procurement director Thomas Holzner.

"However, we are that there are insufficient black suppliers of technology, particularly in the ICT sector. Through the Supplier Development Programme, we hope we will be able to develop black-owned and empowered technology suppliers."

He says that due to the "young age" of black economic empowerment (BEE) suppliers, business-specific technical skills are sometimes lacking.

The group wants 50% of its local procurement to be from BEE suppliers by the end of the year. This translates to a monetary value of R500 million.

Holzner is confident the target will be met, as 45% of the group's procurement volumes are already from BEE suppliers.

"We don't change from a non-BEE supplier to a BEE supplier because it is black," Holzner says. "We want to have powerful, strong BEE suppliers, so we have to help them."

He says preferred suppliers can also access Siemens resources, such as marketing, to help them get to where they need to be.

Tiego Moseneke, chairman of 13% shareholder Africom, says his company will provide support to ensure suppliers do not qualify only in soft areas, but also in the core business. "To remain suppliers, they need to be world-class," he adds.

"We will work with the suppliers to ensure they are transformed and dovetail into the procurement .

"The net result is to facilitate participation of new black companies as active participants in the Siemens procurement process."

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