BBBEE

Broad Based Black Economic Empowerment

The Broad Based Black Economic Empowerment (BBBEE) Code is aimed at extending empowerment to the broader black population, who remain excluded from sectors of the economy in spite of BEE legislation. The South African government took the step towards BBBEE, because they realised that wealth disparities that are ethnically or racially defined, could be destabilising and, that without stability, the long-term sustainability of economic growth in South Africa would simply not be possible.

ConvergeNet Holdings is a Level Four Contributor, which affords us a 100% BEE procurement recognition level.  Currently, approximately 44% of the equity ownership of ConvergeNet Holdings resides with black people. There are no non-voting or special classes of shares, which means that black shareholders enjoy the full voting and economic rights of their shares.

As a public company, listed on the Main Board of the JSE, shareholders will vary from time to time. Management is however confident that the company meets and exceeds the 26% equity ownership recommended by the Code. In addition to ownership compliance, six of the thirteen directors serving on the ConvergeNet Holdings board are black, as are several of the executive and senior managers who are operationally involved in the day-to-day running of the businesses in the Group. It must also be noted that 56% of our workforce is black.

ConvergeNet Holdings Ltd supports the objectives of BBBEE and strives to improve the Group’s level of contribution on a continuous basis.