Pragma Africa, a subsidiary of the leading physical asset management company, Pragma, has achieved a Level 1 Broad-Based Black Economic Empowerment (B-BBEE) rating.
 
Says Attie Nieuwoudt, Managing Director: Pragma Africa: “After securing our Level 2 rating in 2014, we decided a Level 1 BBBEE rating was attainable.  We selected champions for each category on the new scorecard, came up with plans and got to work. I’m very proud to say we were successful in each of these categories.”
 
According to Nieuwoudt, many companies are negative about B-BBEE, but Pragma took the approach to embrace it.  “For our business and people it makes sense. If your intent is right, you’ll be surprised by what is achievable. We now have a diverse group of people which makes us stronger and it’s a huge advantage to our enterprise, shareholders and employees.”
 
Kolosa Madikizela, Cape Regional Manager, adds: “You can’t actively pursue B-BBEE in isolation of transformation. Pragma embarked on a journey of transformation, to improve the diversity of our company and to entrench a culture of diversity and inclusiveness across all levels of the organisation.”
 
As part of their journey, they created Pragma Africa BEE Holdings, which now holds 25.1% of Pragma Africa. “Via the Pragma Africa Employees BEE Trust 40% is black women owned (African, Indian and Coloured) and 50.1% black owned. The beneficiaries of the trust are all South African citizens and full time employees of the Pragma Group. Regular dividends paid to beneficiaries based on company performance are part and parcel of this empowerment initiative, giving employees a tangible stake in the business,” says Nieuwoudt. 
 
With regards to the extent in which they can influence the strategic direction of the business through their shareholding, the board of directors approve the strategies that management present. Says Nieuwoudt: “At board level, Kolosa Madikizela was elected to represent Pragma Africa BEE Holdings. Pragma also established the Consultative Forum a number of years ago, which meets quarterly to discuss matters relating to transformation, including employment equity, skills development, B-BBEE, legislative compliance as well as policy and procedure.”
 
Madikizela comments: “Preferential Procurement and Enterprise Development was a very important aspect of our B-BBEE scorecard and was one of the critical sections we had to focus on in order to achieve a Level 1 on the new codes. This section was critical in that it was the most challenging one, due to the scarcity of 51% black owned and 30% black women owned suppliers in our industry, whom we had to work with in order to achieve our maximum points in this section.”
 
Madikizela says that transformation within the business is approached in a very pragmatic manner, with an action plan that is monitored on a monthly basis. “We communicated our B-BBEE strategy and the implications of the new codes throughout the process. Through our business networks and ensuring that we were doing this for the right intent and not just to tick a box, we were able to identify valuable new suppliers that we could work with. Furthermore, we also looked at our existing service providers who we had excellent working relations with and actively assisted them with their B-BBEE status. We saw it as an opportunity to work - and upskill small black owned enterprises to ensure that we deliver sustainable B-BBEE outcomes.”
 
Skills Development was another important factor in achieving Level 1 status. Nieuwoudt explains: “We create opportunities for University of Technology Engineering students to complete their required six month practical training at our Asset Care Centre offices. We also have a formal student training programme in June and July each year aimed at third and fourth year engineering students. This award winning internship takes place annually and has grown from strength to strength over the past five years. Furthermore, we invite unemployed students and graduates to attend our Academy courses, such as the 3-day training programme in the asset management landscape.  We see all these people as brand ambassadors for the company, so it is definitely to our benefit. With regards to our internships and student programme, it gives us the best opportunity to interact with potential employees.”
 
With regards to Socio-Economic Development, Pragma’s focus has been on creating access to the economy through the educational upliftment of youth and the development and improvement of educational infrastructure.
Nieuwoudt strongly believes that it is their responsibility to get the message out there that B-BBEE makes sense. “We need to explain the benefits, but at the same time not reverse discriminate. We need to do the right thing. It’s to the benefit of all companies and their employees. Our intent is right. We’re a diverse group and doing what is right touches communities across the spectrum. Since embarking on our transformation journey it has been amazing to see that the more we became involved, the better Pragma became. We want to always be an employer of choice and develop a business culture to match our values. We employ people from different cultures and walks of life. It is this diversity that makes us stronger,” concludes Nieuwoudt.