SASOL SIYAKHA Presentation by D' Naidoo Business Manager

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SASOL SIYAKHAPresentation by D. Naidoo
(Business Manager)
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SASOL SIYAKHA VISION

• The vision of SaSol SIYAKHA is
• to utilize SASOLs procurement process and assist
  previously disadvantaged entrepreneurs with the
  creation, development, funding and accelerated
  growth of medium size BEE suppliers
• and thereby deliver successful black business
  professionals to the local economy of the Govan
  Mbeki district in which SASOL has a presence.

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SASOL SIYAKHA PURPOSE

• To develop, fund and grow sustainable local
  medium size BEE suppliers for SASOL, especially
  in commodities or services where the market would
  not naturally produce such BEE enterprises

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SASOL SIYAKHA STRATEGY

• Strategy 1 Create the SASOL SIYAKHA
  investment/development vehicle
• Align SIYAKHA with all transformation and BEE(P)
  principles and commitments
• Establish all necessary SIYAKHA infrastructure
• Identify and establish a number of SIYAKHA
  flagship initiatives to set the scene
• Strategy 2 Utilize the SASOL procurement
  opportunity as a vehicle to facilitate BEE
  suppliers
• Grow, develop, assist, establish and deliver 20
  BEE supplier businesses for SASOL in Secunda
• Grow the number of medium size black suppliers
  that SASOL support in terms of
• Investment and skills transfer
• Procurement and accelerated growth
• Delivery of successful BEE suppliers which could
  act as potential BEE suppliers to SASOL in the
  future
• Strategy 3 Establish SASOL SIYAKHA as a SASOL
  standard and an industry benchmark
• SIYAKHA assistance will be available to BEE
  suppliers from all SASOL business units

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SASOL SIYAKHA SIYAKHA BUSINESS PROCESSES

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SASOL SIYAKHA BUSINESS PROCESS
SIYAKHA BEEP opportunity identification (Sources
- review of PSM contracts and growth of existing
BEE suppliers etc)
SIYAKHA assistance are not required by BEE
companies in this category
BEE companies/suppliers which require SIYAKHA
assistance
SIYAKHA will negotiate the level and range of
assistance with selected BEE suppliers which can
include funding, advice, governance, growth and
development etc
Competitive tendering processes will follow No
further SIYAKHA involvement envisaged
Present BEE business proposals after
investigation to the Operating committee, Board
of Trustees
Terminate further SIYAKHA investigations on the
supplier and/or the commodity involved
Proposal not approved
Proposal approved
SIYAKHA will prepare and sign the contractual
documentation with selected BEE suppliers which
can include shareholder agreements, loan
agreements and management agreements etc.
SIYAKHA will provide funding and/or implement the
interventions which were approved and agreed upon
The final settlement of loans which SIYAKHA
granted to selected BEE suppliers and the
completion of skills transfer interventions. The
assisted BEE suppliers should prepare to be ready
to continue on their own.
Implement exit strategy (typically after
completion of the 3 - 4 year interventions)
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SASOL SIYAKHA EVALUATION PROCESS

• Evaluate proposed BEE entrepreneurs in terms of
• Track record and potential
• Expertise and availability of funding
• Viable business plans and level of business
  skills
• Results from security, credit and other
  background checks
• Make recommendations on proposals to the Trust
• Decide which proposals/business plans will be
  presented to the board of trustees

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SASOL SIYAKHA

• SIYAKHA OPPORTUNITIES

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IDENTIFICATION/SOURCES OF SASOL SIYAKHA
OPPORTUNITIES

• Growth and development
• of existing BEE suppliers
• Identify promising BEE
• suppliers on the existing
• supplier database which
• require assistance to
• grow their businesses
• SIYAKHA will match
• additional procurement
• opportunities with the
• selected BEE suppliers
• (Chinese wall)
• PSM can award
• further contracts where
• appropriate (Chinese wall)

• Local BEE entrepreneurs
• Local BEE entrepreneurs
• might approach SIYAKHA
• for assistance to become
• SASOL suppliers
• SIYAKHA will identify a
• local pool of BEE talent in
• and around Secunda
• SIYAKHA PSM will
• identify appropriate
• procurement opportunities
• and link it with the existing
• talent pool (Chinese Wall)
• SIYAKHA will assist BEE
• entrepreneurs which

• Poor performing BEE
• suppliers
• Existing BEE suppliers can
• approach SIYAKHA for
• assistance to improve on poor
• business performance
• PSM and/or other
• stakeholders could also
• identify poor performing
• BEE suppliers which might
• require SIYAKHA assistance
• SIYAKHA will negotiate and
• agree on the level of
• participation with the BEE
• suppliers (management
• agreements)

• PSM contract
• opportunities
• PSM review forthcoming
• procurement opportunities
• (procurement calenders)
• PSM discussions with
• SIYAKHA will follow to
• ensure that all SIYAKHA
• and PSM requirements
• are aligned in the
• procurement strategy
• PSM will earmark the
• selected commodities for
• SIYAKHA involvement
• SIYAKHA will negotiate

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SASOL SIYAKHA

• SIYAKHAS INTERACTION
• WITH THE PROCUREMENT PROCESS WHEN PROCUREMENT
  CONTRACTS
• ARE REVIEWED

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STEPS IN THE CREATION OF SIYAKHA INITIATIVES IN
THE PSM ENVIRONMENT(1)

• 1) PSM will identify forthcoming procurement
  opportunities from
• the relevant procurement calendars (18 month
  window)
• 2) Potential procurement opportunities will be
  discussed with all
• relevant stakeholders to determine if
  the selected/identified
• commodities meet the SIYAKHA and other
  related criteria
• 3) Commodities that meet the selected criteria
  will be earmarked
• (for the full or partial contract
  value) to become SIYAKHA BEE
• development initiatives
• 4) The expected SIYAKHA involvement which is
  applicable to
• the selected commodities would be
  included in the related
• procurement strategies of the
  commodities which were identified

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STEPS IN THE CREATION OF SIYAKHA INITIATIVES IN
THE PSM ENVIRONMENT(2)

• 5) PSM and SIYAKHA will jointly compile a list of
  qualifying suppliers
• which meet the SIYAKHA and other requirements
• 6) SIYAKHA and PSM will schedule meetings with
  the qualifying
• suppliers which feature on the supplier list
  to ensure they are
• familiar with the available SIYAKHA range of
  support
• 7) The selected BEE supplier will approach
  SIYAKHA for
• assistance and the required SIYAKHA
  intervention will be
• identified, discussed and agreed upon
• 8) In cases where developmental support is
  required, PSM will
• recommend the nature and extent thereof to
  SIYAKHA
• 8)

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SASOL SIYAKHA

• SIYAKHA FUNDING AND FUNDING CRITERIA

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SIYAKHA FUNDING CRITERIA

• 1) The BEE entrepreneurs demonstrated their
  capability to ensure the initial survival of the
• supplier business in the marketplace
• 2) The BEE shareholders hold at least 26 of the
  total equity of the supplier company
• 3) The business plan of the BEE company
  demonstrates future viability, sustainability and
  
• potential for growth
• 4) At least one SASOL contract must have been
  awarded to the supplier company
• 5) The BEE entrepreneurs are committed to focus
  adequate attention to the success of the
• supplier company which they represent
• 6) The value systems of the BEE companies which
  receive SIYAKHA assistance are aligned with the
  value systems of SASOL
• 7) Suppliers should be based in the local
  community.
• 8) The 3 4 year skills transfer intervention
  will be sufficient to help ensure the future
  success of the BEE supplier organization

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SASOL SIYAKHA

• SIYAKHA INVOLVEMENT

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The active participation of SIYAKHA in the
management of the BEE supplier company is an
important component of the model to achieve
success.
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SASOL SIYAKHA OTHER BENIFITS

• SASOL SIYAKAS DEVELOPMENT INTERVENTIONS
• ARE NOT LIMETED TO FINANCIAL SUPPORT
• BUT ALSO TO NON FINANCIAL SUPPORT
• SUCH AS
• TRAINING, BUSINESS MANAGEMENT SKILLS, FINANCIAL,
  LEGAL AND MARKETING.