Sithabile Technology Group (STG), the black-owned holding company that operates through three subsidiaries focused on niche markets in the South African information technology industry, has successfully met revenue and profitability targets set by the Industrial Development Corporation (IDC).
The targets formed part of a series of milestones for the granting of a multimillion-rand working capital loan to the group.
Confirming the group's attainment of targets for the period from 1 January to end July 2005, STG executive director Jerry Mashinini paid tribute to the IDC and to management and staff throughout the group.
"The injection of a multimillion-rand loan facility by the IDC will ensure the long-term viability of a group that is strongly positioned to play a leading role in addressing all criteria set for genuine black economic empowerment and to support much broader development initiatives in the country and in the rest of Africa in accordance with NEPAD," Mashinini said.
Willie Fourie, Head of IDC's Techno Industries business unit, said the funding provided by the IDC to STG represents support for a strong management team which has established exemplary broad-based black economic empowerment credentials.
"The STG application was focused on working capital requirements for a strategically sound business plan. For example, no part of the STG application was associated with funding needed to support equity participation by BEE stakeholders. All elements of genuine, broad-based black economic empowerment had already been dealt with by the STG shareholders before making the application," Fourie said.
He said the granting of the loan against an outstanding performance by a highly committed and experienced management team, led by executives such as Jerry Mashinini, Tshepo Mahlangu and Peter Blaauw, confirmed the confidence and potential that were identified in STG when negotiations for the loan were initiated.
STG was formed in September 2004 representing strategic IT investments by Odirile IT Holding (Pty) Limited, management and staff of the operating subsidiaries, and a consortium of local and international businessmen.
Odirile IT holds a 47.50% interest in STG with a further 2.60% of group equity owned by the Sithabile Empowerment Trust. The trust is for the sole benefit of historically disadvantaged employees of STG.
Odirile IT is owned by Odirile Investment Holdings (Pty) Ltd, a broad-based black economic empowerment group that represents a dynamic team of black entrepreneurial professionals, a group of black-owned SMMEs (small, micro and medium-sized enterprises), the Tshwane Women's Forum, and two community-based organisations - Umkhonto We Sizwe Military Veterans Association (MKMVA) and The Solomon Mahlangu Family Trust.
STG subsidiaries include ADIC Africa, ASBIS Africa and Sithabile Storage Integration (SSI).
Mashinini said that during the period ADIC Africa secured contracts in the private sector among blue-chip companies that included Amplats, Investec, MTN and Discovery Health. In the public sector major tenders were won to supply ADIC data backup and storage solutions to SARS, the HANIS project and Rand Water.
He said that all operating subsidiaries had contributed to achieving the financial targets set as a condition of the IDC funding. According to Mashinini, STG is on track to achieve revenues of more than R200 million for the 16-month period from start-up to end December 2005.
"Milestones achieved in accordance with the IDC revenue and profitability targets at the end of July will help ensure the group meets or exceeds its business and financial objectives," he said.
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