newsSouth Africa

Massive lift for SA industrial transformation

sa-industrial-transformationJOHANNESBURG, (CAJ News) – PLANS to accelerate black economic participation have received a major boost through a partnership involving an investments company, National Empowerment Fund (NEF) and Industrial Development Corporation (IDC).

The partnership is a culmination of Zungu Investments Company (ZICO) launching its new brand, Zungu-Elgin Engineering, in Durban.

ZICO, the majority shareholder (86 percent) founded in 2000, has interests in the industrial and mining services sectors.

The addition of Zungu-Elgin Engineering into the ZICO portfolio will enhance the diversity of the group’s current business.

The combined expertise and business knowledge provided by the ownership of the two organisations is envisaged to provide the stability required for continued business success.

“Zungu-Elgin will act as a catalyst to accelerate black economic participation in the engineering industry through ownership, management and control,” says Sandile Zungu, Executive Chairman of ZICO.

He says this will secure an engineering industry that is diversified and inclusive.

“The advancement of women remains high on our transformation agenda,” Zungu adds.

The new entity is formerly known as Elgin Engineering, with a great legacy as the leading Durban-based engineering company for the past 67 years. It services clients mainly in the petroleum and sugar industries in South Africa and the rest of Africa.

NEF funded the remainder of the 14 percent of ZICO’s acquisition of Elgin Engineering.

Zama Khanyile, Umnotho Fund Manager at the NEF, says partnering with Zungu-Elgin will enable NEF deepen transformation in manufacturing, an industry that contributes approximately 14 percent to gross domestic product.

Globally, the sector is considered one of the bedrocks of industrialisation, hence NEF and government, through its macroeconomic policies, has identified manufacturing as a sectors needing greater volume
of black participation.

Khanyile expresses delight ZICO has come on board and taken the lead in the shareholding.

“It is credible catalyst for black business in South Africa. We have no doubt that the company can look forward to greater heights as South Africa navigates the course for inclusive growth,” says Khanyile.

CAJ News

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