Umzila Empowerment NPC
Umzila Empowerment is a Non-profit company founded in 2018 to assist businesses looking to add black ownership into their shareholding. Umzila Empowerment sits as a silent investor and seeks to collect dividends that are used to provide long term development capital benefits to under-privileged black South African communities.
Umzila Empowerment is chaired by Nic Combrinck, the founder and CEO of Growbridge, who brings a wealth of experience in corporate governance and transaction advisory that aligns to the Broad-Based Black Economic Empowerment Codes of Good Practice.
The Founding Principles of Umzila Empowerment NPC
Provide a commercial vehicle that generates annuity cash-flows for poverty alleviation in South Africa’s black communities. It must be a saleable commercial structure that offers a solid business case, thus moving cash-flows from donations to investment income.
The vehicle must be self-sustaining and transparent, making use of partnership organizations and services, so as to reduce the administrative burden on stakeholders.
Investee organizations must have a transparent view of Umzila, who will vote in a reliable way, always observing the highest levels of corporate governance.
MINIMUM INVESTMENT REQUIREMENTS
There is no minimum investment value when considering an investee, but the following are considered:
- Governance record
- Capitalization of the business
- Business’ ability to execute on operations
- Umzila looks to hold up to 51% ownership stakes in businesses, offering a cost effective black ownership structure.
- The NPC will take shareholding only, no directorships.
- There may be other, non-related parties (such as employee share schemes) in the structure to allow ownership targets to be met where required.
The most appropriate vehicle will be that of a registered NPC for the following reasons:
- Functions similarly to that of a (Pty) Ltd, incorporated under the Companies Act 2008 (Co. Act).
- Generally, businesspeople find the NPC governance structure under the Co. Act more familiar than other vehicles, giving them enhanced comfort when transacting.
- Embodies the same benefits as that of a trust from a B-BBEE perspective in that ownership demographics are sought through the beneficiaries it supports.
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