Samsung has announced a R280 million Equity Equivalent Investment Programme (EEIP). The company projects this will have a measurable impact on job creation and a contribution of nearly R1 billion to the South African economy at large.
EEIP is an initiative of the Department of Trade and Industry (DTI) through which multinational companies that are unable to sell equity in South Africa are invited to participate and contribute positively towards B-BBEE and development in the country.
The announcement event, held in Johannesburg on 7 May 2019, was addressed by Trade and Industry Minister Rob Davies, through a video link, and Samsung Africa President and CEO Sung Yoon. It followed the South Korean multinational’s recent commitments to long term investment in South Africa.
Davies said Samsung South Africa’s Equity Equivalent investment amounts to almost R280 Million over 10 years. It joins nine other multinationals that have been approved for a value of R2.2 billion collectively. The programme has to date resulted in the creation of more than 3 000 direct and indirect jobs.
According to Samsung, its plan will address key developmental aspects linked to the National Development Plan (NDP) and overall transformation of the South African economy. These include black industrialisation through e-waste recycling, beneficiation research and development. This is a partnership with Mintek, and according to Samsung is the first time in Africa where a beneficiation plant is planned to be built and maintained by South Africans and operated by a black entrepreneur.
Other aspects of the plan include enterprise development and the development of township economies through Accredited Services Centres and software development.
Davies said the Samsung EEIP would result in the creation of 262 direct jobs; it would allow the emergence of a new black industrialist; it would support 13 black-owned and women-owned businesses and contribute R945 million to the economy.
“We are happy that the DTI has contributed and supported Samsung in the design and development of this programme that will result in the establishment of five accredited service centres that are black and women-owned. These will be providing repair service to all kinds of brands of consumer electronics, hand-held devices, air-conditioning and refrigerators,” Davies said.
Director of the Business Innovation Group and Corporate Affairs at Samsung South Africa, Hlubi Shivanda, said the company believed its EEIP strategy would help alleviate many challenges the nation faces.
“Our alignment with the National Development Plan (NDP) 2030 is part of our statement of intent. The fact is, Samsung is firmly committed to growing South Africa through socio-economic change and has dedicated the necessary resources and time to create a future which was once merely a dream.” Hlubi said.
He added that the company’s EEIP had an integrated approach, which means that it would be an integral partner in the creation of the first and only black-owned and operated e-waste beneficiation plant in Africa that can separate waste electronic and electrical equipment (WEEE).
The University of the Western Cape (UWC) has been selected as anchor partner for the development of black application development skills. Additionally, a partnership with Microsoft AppFactory will provide real-world experience to supplement the theoretical knowledge gained by beneficiaries at UWC. Mintek will be Samsung’s technology partner for e-waste beneficiation. – GeekWire.co.za