FirstRand

Kagiso Trust, WDB and MIC consortium acquired 6.5% of FirstRand.

KT made this investment as a means of getting closer to realising its’ vision for creating a sustainable endowment for the poor.

An attractive feature of the deal is that KT, WDB and MIC consortium will have access to cash flows prior to the debt having been repaid, via receipt of 3% of dividends. In addition, the partnership allows for opportunities regarding business development and assisting with transformation at FirstRand.

The BEE partners identified the need to become more involved with financial services companies and were attracted to FirstRand because it offers a full suite of services including banking, insurance and asset management. The entrepreneurial and innovative culture of FirstRand added further appeal.

This transaction also gives all three partners the ability to contribute meaningfully to the fulfilment of the Financial Sectorial Charter across a number of areas including recruitment, procurement, broader access to financial services, empowerment financing, enterprise development and CSI.
Kagiso Trust, views this investment and partnership as one which will give direct sustainable returns to its beneficiaries as the cash flowing from this transaction will enable Kagiso Trust to increase its funding of educational and other development projects.


Information on the Partners


MIT

MIT was founded by the National Union of Mineworkers in July 1995 to make a direct contribution to the economic development and social upliftment of mineworkers, ex-mineworkers, construction and energy sector workers and their dependents. Since 1997, MIT has disbursed R62 million to fund its social development projects and programmes that focus on poverty alleviation, local economic development, enterprise development, job creation and education.
For more information: www.mic.co.za


WDB Trust

WDB Trust was established in 1992 with the purpose of supporting the economic upliftment of poor black women in rural South Africa. Its specific objectives are to provide poor women with access to finance through not-for-profit micro-credit, to educate women about developing their own businesses, to enhance their household livelihoods and to improve the position of women in society overall. WDB emphasises a banking relationship based on mutual trust, credit discipline, collective responsibility, accountability and savings. Since its establishment, WDB has reached over 14 000 women in rural areas with its training and micro-credit programmes. The micro-credit programme has disbursed in excess of R30 million through the issuance of over 22 000 micro-loans for income generation activities. WDB also provides training in mother tongue functional literacy, computer literacy, business development skills and micro-credit delivery.
For more information: www.wdb.co.za


FirstRand BEE transaction

The FirstRand Empowerment Foundation has a mandate for broad-based transformation, and black South African FirstRand staff and non-executive directors.

The Group selected its BEE partners because they share FirstRand’s objectives of enhancing broad-based BEE by addressing the needs of a wide constituency. In addition, the BEE partners have excellent reputations, successful track records and long standing relations with FirstRand and with each other.