Our Value-Add Proposition

Lereko’s overriding value proposition is that it would seek to be a long-term strategic partner, working together with the shareholders, the board and with management in growing shareholder value.

Lereko will bring together a broad range of industry knowledge, leadership skills and expertise capable of enhancing shareholder value. Key attributes, contributions and roles that Lereko would bring to the BEE transaction, include the following:

Industry knowledge and expertise

Lereko’s model is to incorporate specialist skill into the industries in which it invests. Through programmes of mutual secondment, placement of trusted colleagues and involvement in human capital development and skills development and transfer, Lereko shares and builds industry expertise. While harnessing the knowledge and management skills of management teams, Lereko augments and partners throughout the value chain where best required.

Lereko’s constituents are well connected and highly respected for their conflict resolution skills and expertise by the South African policy makers. Lobbying and participation in policy debates is an important facet of a developing country and continent. Our unique experience in crafting the political solution in South Africa can also find important parallels in the business environment.

Commercial business acumen

Lereko brings together a diverse and complementary skill set capable of interacting and adding value at various levels, not only with industry expertise but also with pure commercial business acumen.

Strategy and Direction

Lereko has the skills and business experience required to interact at the highest level with shareholders, directors and management, as well as with all external stakeholders – regulators, legislators, unions, communities and political role players. The Lereko team has over time developed strong relationships with policy makers provincially, nationally, regionally and continentally and acquired an insight into the macro economic (including political and social).environment in South Africa and Africa. To this end the team is able to to participate pro-actively with management in evolving and directing strategy not only in South Africa but in the rest of the African continent and internationally.

Operational participation

Lereko and its consortium partners include individuals who have investment knowledge and deal making experience in the sector. The team builds an understanding and relationship with management and would continue to foster these relationships by closely working with and aligning interests with them. Although Lereko do not seek to become full time executives beyond the offer of a key secondee, our objective would be to participate in more than a simple shareholder capacity. To deliver on our value proposition, Lereko requests management to identify specific areas of appropriate operational participation, including various board and subcommittees. Lereko is open to deploying operational capacity should management view this as critical in strengthening the business.

Business Networks

Lereko and its partners include many influential, well respected business and other leaders who are able to widen and deepen the business networks of its portfolio companies. Our objective would be to ensure this network is at the disposal of key managers and is mobilised and utilised as appropriate. Lereko’s intention would be to supplement and support various existing business relationships, with the objective of enhancing shareholder value.

Sensitivity to local issues

Having served on the Commission for the Delineation and Demarcation of Provincial Boundaries, Lulu Gwagwa has a solid understanding of local heritage. As the former CEO of the IDT, a development agency which played a pivotal role in the delivery of the Government’s socio-economic development agenda, she also has first hand experience in managing and implementing programmes utilising the region’s heritage to identify service and development opportunities aimed at eradicating poverty and boosting job creation in all provinces.

Valli Moosa was formerly the Minister of Environmental Affairs and Tourism and is currently President of the World Conservation Union. In his former role, he was responsible for the declaration of the very first world heritage sites in South Africa, namely The Cradle of Humankind, Robben Island, the Greater St Lucia Wetland Park, and the Ukhahlamba/ Drakensberg Park. Valli’s contribution to heritage in South Africa was also recognised when he was awarded a Gold Award by the South African Heritage Society in 2004.

Lereko has extensive influence and networks in all the South African provinces. These networks include Local Government, development agencies and other local associations. As Minister for Provincial Affairs and Local Government, Valli Moosa interacted extensively with all provinces, municipalities and fostered strong relationships with traditional leaders. As the Premier for the North West, Popo Molefe has extensive understanding of decision making processes at this sphere of Government and has also had numerous interactions with other regional Government bodies. As the CEO of the IDT, Lulu Gwagwa also interacted directly with all provinces and municipalities and managed nationally the Integrated Sustainable Rural Development nodes.

African Expansion

A number of our members have knowledge and experience of other African countries. An additional advantage is that African market establishment and penetration is often easier accomplished by black-led groupings. With NEPAD and the economic drive for African expansion by key players in the South African economy, many business opportunities are exist on the continent.

Commitment and contribution to assisting with the transformation

Lereko is majority black owned, controlled and managed on a “see through basis”. The group is also committed to bringing broad based partners appropriate to each investment opportunity. This means that by partnering with Lereko, our partners acquire maximum BEE points in the area of equity [check this]. However, for long-term sustainability and growth, business needs to transform not only at shareholder and board level but, probably more importantly, internally. Lulu Gwagwa has served on the Ministerial Advisory Committee on Local Government Transformation and has extensive experience in the transformation field. Valli Moosa and Popo Molefe built entire departments of central and provincial government often from scratch.

Within Lereko, there is expertise and experience to add value in the further development and implementation of transformation plans including, inter alia, recruitment and retention and gender balance.

Recruitment and retention

In attracting and retaining the scarce emerging skills and expertise, a company’s ethos and culture is often the deciding factor. Our involvement assists significantly in portraying and developing a progressive and transforming organisation. Lereko can also assist in identifying, recruiting and retaining the necessary skills.

Gender balance

Lereko includes a number of highly respected business women and leaders who would be available to participate and assist with gender balance in the governance and ownership structures.

Skills development, preferential procurement and enterprise development.

Lereko subscribes to the spirit of the BEE Codes of Good Practice and as an overriding principle, will always ensure that it is compliant with the guidelines.

Beyond scoring Empowerment points

Lereko lives by the spirit and intent of BEE Code of Conduct and does not merely abide by it to score the maximum points. In fact Lereko prefers to be known as a champion of BEE best practice beyond compliance with the BEE Codes. Lereko engages with management on their current score and how not merely to acquire the maximum points, but more importantly to position for long-term sustainability and growth.