IDC funds BEE in communications industry

Moses Silinda, head of the IDC's Media and Motion Pictures business unit, says OrlyFunt's strong networking capabilities are expected to bring added value to Saatchi SA, ranked as one of the country's top agencies in terms of creative output and annual billings.

"Having reached an agreement with outgoing BEE shareholders Rofara Investment Holdings to acquire their stake in Saatchi SA, this transaction affords another empowerment company the chance to obtain a meaningful shareholding in a well-established and operationally sound company," Silinda says.

"Besides enabling Rofara to harvest their initial investment and now pursue other opportunities in the SA economy, the fact that OrlyFunt is headed by Saatchi SA's chairman, Sello Rasethaba, ensures that this empowerment transaction will bring added value through direct operational involvement."

Established in 2003, OrlyFunt is a black-owned and managed investment company with a team of experienced entrepreneurs that is committed to building sustainable businesses. In addition to Rasethaba, other directors include Mafika Mkwanazi, Andrew Mlangeni and Lunga Ncwana.

Following the recent submissions of industry charters for the communications sector of the economy, Silinda says the transaction maintains the transformation aspect of the company within the guidelines of the sector charter.

"With many large clients, government departments and parastatals implementing black economic empowerment procurement policies, this deal ensures that Saatchi SA is able to continue to participate in the considerable opportunities available in the communications sector," he concludes.