Since the introduction of the first B-BBEE Codes in 2007, Imperial Logistics has worked tirelessly to be recognised as a leader in the development of human capital at all levels - with the prime objective being the closer alignment of the group’s employee and leadership profile with the national demography. With transformation an essential part of the group's strategy, our B-BBEE policies have been developed to ensure that measurable progress is made towards genuine black economic empowerment. Our approach is intrinsically collaborative and the business works together with all of our stakeholders - customers, partners, suppliers and the public sector, including government.
Our most recent certification - issued in October 2018 - represents a significant milestone in our transformation efforts, with year on year improvements once again being realised across all categories of the scorecard. Imperial Logistics proudly maintained its certification as a steadier Level 2 B-BBEE company and our “Value Add” status, based on the Transport Sector Codes - both of which continue to translate into significant benefits for clients doing business with us.
Preferential Procurement, Enterprise development and socio-economic development were areas in which the group scored full points. Our preferential procurement spend with QSE’s and 51% black owned businesses, was more than double the target percentage with the EMEs spend being 137% of the target. Going forward, we will continue to actively seek out opportunities to partner with QSEs, EMEs and other designated group suppliers that are 51% black owned and 30% black woman owned in order to facilitate maximum benefit for our clients in terms of their own procurement scorecards.
Given the complexity and size relating to the disposal of 30% of Imperial Logistics South Africa to a B-BBEE partner, and which was therefore taking substantially longer than previously anticipated, a smaller transaction constituting only the energy, mining and chemicals businesses in Imperial Logistics South Africa (ILSA) is being pursued. As such, a newly incorporated entity (“NewCo”) will be formed which will be the holder of the Tanker Services Food & Chemicals and Tanker Services Fuel & Gas business units within Imperial Logistics South Africa Group (Pty) Limited and Imperial KWS Logistics (Pty) Limited, a subsidiary of ILSA (annual turnover of approximately R3.5 billion). Afropulse Group (Pty) Limited, a black woman-owned business, has been confirmed as the strategic B-BBEE partner in the deal, and will subscribe for 25% of the issued share capital in NewCo for a cash consideration of R200 million. The core capability of the NewCo post the acquisition of the Imperial Newco Business Units is bulk road transportation management of liquids, gases, powders, ores and grains with road tankers and tippers, which requires specialised assets and skills. The commercial terms and funding of the transaction have been confirmed but are subject to conditions precedent usual for a transaction of this nature. We anticipate the transaction to be implemented by the end of Q3 F2019.