by Lwazi Stuurman

Nedbank's Level 2 BBBEE rating

This financial institution has risen to a top position as one of the country's most BBEEE aligned companies

Nedbank is rated as one of the most empowered companies in SA
black businessman.jpg

Spurred by the very successful Nedbank Eyethu Share Scheme that was launched in 2005, the bank’s BBBEE record is testament to its solid performance and ability to meet commitments to a broad range of stakeholders.

The Eyethu Scheme’s net value has grown by more than R 5,8 billion, with R2,3 billion having already accrued free of any debt to the participants. In addition, over R710 million has been paid out in dividends to date. Widely regarded as one of South Africa’s most successful empowerment deals; the Eyethu Scheme has benefited more than 47 000 individuals – ranging from employees, retail clients, corporate clients Nedbank black business partners and communities.

Chief Executive of the Nedbank Group: Mike Brown explains that the objective of the scheme is to broaden Nedbank’s shareholder base and meet its business and moral commitment to South Africa’s economic and social transformation.

“Through this vehicle, we’re able to grow our business and play a meaningful role in the nation’s economic growth. The affirmation of our Level 2 Broad-Based Black Economic Empowerment rating attests to the success of our efforts in ensuring that transformation is not a compliance exercise but a strategic business imperative to ensure Nedbank remains relevant in a transforming society. ”

Brown maintains that in 2012 Nedbank continued to make significant yearly progress across a number of pillars, including: ownership (+1%) and skills development (+6%). Nedbank has achieved maximum points in enterprise development and socio-economic development.

“We are immensely proud of our transformation accomplishments because our success is realised amid a variety of challenges that are experienced across the sector, including procurement from black women-owned businesses,” he says.

“There have been serious challenges in this area because most suppliers only operate in smaller categories or in areas that do not easily fit  with our supply chain. A possible solution is to help grow women-owned firms to a size sufficient to play a more significant role in that chain. We’re already doing this with some of our partners,” he says.

Brown also draws attention to the 5,6%( investment in enterprise development of Nedbank’s 2011 taxed profit which included:

·         free business management seminars offered by the Nedbank Retail Small Business Services division;

·         innovative and comprehensive involvement in small and medium-sized enterprises incubator programmes by Nedbank Business Banking; and

·         delivery of programmes that focus on business skills training, mentorship and transfer of business acumen, for the benefit of small businesses.

During 2012 Nedbank also maintained its ongoing commitment to “making things happen” in the communities it serves. The group invested R95 million in socio-economic development projects, mainly in the areas of education (53%), welfare (14%), community development (9%) and the environment (13%).

Flagship projects included the career guidance “Nedbank My Future, My Career” programme, the Nedbank Matric Revision programme, the external bursary programmes, as well as the Back to School initiative. 

Going into 2013, Nedbank remains committed to building on its solid empowerment credentials by aligning to the recently released Financial Sector Code (which includes Access to Financial Services and Empowerment Financing), promulgated on 26 November 2012. The bank seeks to ensure that existing and new initiatives build on its current successes to further advance its transformation journey and contribution to B-BBEE.

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