Gibela is 61% held by Alstom, 30% by Ubumbano Rail and 9% by New Africa Rail.
Alstom, an internationally recognised leader in rail engineering has had a presence in South Africa for over 100 years. Transnet's rail stock contains significant Alstom content and the majority of the fleet uses Alstom's traction technology. Alstom also provides a broad range of services and solutions in the power and energy sectors worldwide, including South Africa.
The Alstom group employs 93,000 people globally, and as Gibela's majority shareholder is ideally placed to share its expertise in suburban rail transport in the South African context, transferring skills and decades of technical knowledge to the local workforce.
Ubumbano Rail is a black-owned consortium holding 30% of Gibela, with the shares temporarily ‘warehoused’ by the National Empowerment Fund (NEF). Ubumbano Rail is made up of a number of companies that are keen to enter the rail sector space as suppliers. The three commercial entities in Ubumbano Rail are Khipunyawo Rail, whose members have been active in the rail sector for over 10 years; the Elgin-Identity Rail Corporation, an entity whose members have, among other things, heavy fabrication capabilities and wheel refurbishment accreditation; and Community Rail, new entrants to the rail sector.
Other shareholders in Ubumbano Rail include the PRASA Employee Share Option Trust (ESOP), the Gibela ESOP and an education trust. Gibela therefore has a black ownership structure in place that ensures its compliance with South African empowerment legislation.
New Africa Rail (NAR) is a new and dynamic rail entrant created to drive the process of rebuilding Africa through rail. NAR is focused on infrastructure projects including rail, ports, signalling systems, rail logistics, energy efficient technologies and rail real estate. NAR will ensure the participation by black South Africans in the Gibela project by driving maximum local procurement and will seek other investment opportunities in line with their business plan.
The Elgin Group shareholding comprises the following:
•Majority Shareholder: Jeany Industrial Holdings(Pty) Ltd - owned by Ian Donjeany (CEO of Elgin Group) and Lee Donjeany (COO of The Elgin Group)
•National Empowerment Fund – A catalyst of Broad based Black Economic Empowerment (BB-BEE) in South Africa which promotes black economic equity and transformation
•Sothern African Enterprise Deveopment Fund - US and African based private equity investor with investments throughout Sothern Africa
•The Elgin Group Management
Established in October 1994, the Southern Africa Enterprise Development Fund (SAEDF) is an initiative of the Former President William Jefferson Clinton of the United States, Former President Nelson Mandela of the Republic of South Africa, and the US Congress for the specific purpose of providing funding to stimulate the creation and expansion of small and medium-size indigenous businesses throughout southern Africa.
The NEF’s role is to support Broad-Based Black Economic Empowerment (BB-BEE).
As the debate concerning what constitutes meaningful and sustainable BB-BEE evolves, the NEF anticipates future funding and investment requirements to help black individuals, communities and businesses achieve each element of the Codes of Good Practice. These include a focus on preferential procurement, broadening the reach of black equity ownership, transformation in management and staff and preventing the dilution of black shareholding.
The NEF differentiates itself not only with a focused mandate for BB-BEE, but by also assuming a predominantly equity-based risk to maximise the Empowerment Dividend. Reward should balance the risk with the application of sound commercial decisions to support national priorities and government policy such as the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) or targeted investments through the Department of Trade and Industry’s (the dti’s) Industrial Policy Framework (IPF).
The work of the NEF therefore straddles and complements other Development Finance Institutions (DFIs) by allowing the organisations to work in close collaboration in the promotion of BB-BEE. With them, the NEF can enhance other DFIs and their mandates by sharing its specialist sector expertise and knowledge of BB-BEE.
Established by the National Empowerment Fund Act No 105 of 1998 (NEF Act), the National Empowerment Fund (the NEF) is a driver and thought-leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses, and by promoting a culture of savings and investment among black people. The operations of the NEF are governed by the Public Finance Management Act No 1 of 1991 (PFMA), including the National Treasury Regulations, the King III Report on Governance for South Africa and the Protocol on Corporate Governance in the Public Sector, 2002.