The defence industry Enterprise and Supplier Development (ESD) fund has again called for contributions from the South African defence industry, to improve the state of black-owned defence companies.
The ESD has been established as an initiative of the Defence Sector Charter Council (DSCC), with the aim of enabling and supporting the economic transformation of the South African defence industry (SADI).
“The aim of this initiative is to transform and revitalise the defence industry by enabling effective and sustainable economic participation of Black people in the SADI value chain [and] to encourage innovation, manufacturing, development and growth of SMMEs [small, medium and macro-sized enterprises] in the defence industry, to enable a sustainable defence industry and ensure active involvement of ‘Black Designated Groups’ (Unemployed, Youth, Persons with disabilities, Military Veterans, people living in underdeveloped areas and Women),” the DSCC stated.
The registered ESD Fund (officially Defence ESD Fund NPC) will engage in enterprise financing, encouraging entrepreneurship, capability and capacity development of diversified SMME businesses with specific focus on designated groups.
“All Measured Entities as defined under the Defence Sector Code are required to contribute to the ESD Fund 1% of their net profit after tax (NPAT) per annum. A ‘Measured Entity’ is an entity, enterprise, state organ or public entity that is subject to measurement under the Defence Sector Code,” the DSCC stated.
The DSCC has called on Measured Entities that operate in the South African Defence Industry to make their respective ESD contributions as required by the Defence Sector Code.
Contributions received will be deployed by the Defence Sector Charter Council on ESD initiatives. Contribution made will be recognised on the contributor’s BEE scorecard.
The ESD Fund will fund “black-owned entities in SADI”, engage in manufacturing promotion initiatives for SADI; fund “innovative black-owned technology entities” either in or related to SADI; “promote development of intellectual property and exploitation in SADI by and in collaboration with black people” as well as support the growth of black business in the local defence industry.
The ESD Fund will oversee the receipt of funds from contributors and disburse funds as directed by the DSCC, which has a primary aim of expediting the transformation and revitalisation of the local defence industry.
Contributions may be deposited into the following bank account, using the name of the Measured Entity as a reference:
Account Holder: DEFENCE ESD FUND NPC
Account Number: 1221078860
Branch Code: 198765
Reference: Name of the Measured Entity