Hewlett-Packard (HP) yesterday became the first information technology multinational to get government approval to invest in an equity-equivalent project as its contribution to empowerment.
The equity-equivalent route, which sparked a lot of controversy when it was first mooted about a year ago, allows foreign companies to avoid selling equity to black investors. These companies are not exempt on other aspects of the black economic empowerment (BEE) codes.
Ken Willett, the director of HP Middle East, Mediterranean and Africa, said the firm would invest about R150 million in programmes that promoted the pillars of the codes. A significant chunk of the money would go towards creating an HP Business Institute - the equity-equivalent project.
The institute, to be launched in November, is expected to train about 300 small black information technology (IT) businesses over seven years. "It will upgrade skills, bring unemployed graduates into the sector and provide for job placement," said Willett. The first class will begin in February.
The department of trade and industry gives international firms credit for empowerment alternatives so they can avoid selling shares.
full story from Business Report here.
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