Plans to accelerate black economic participation have received a major boost through a partnership involving an investments company – Zungu Investments Co., National Empowerment Fund (NEF) and Industrial Development Corporation (IDC).
The partnership is a culmination of Zungu Investments Co. launching its new brand, Zungu-Elgin Engineering (Zungu-Elgin), in Durban.
Zungu Investments Co., the majority shareholder founded in 2000, has interests in the industrial and mining services sectors.
The addition of Zungu-Elgin into the Zungu Investments Co. 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 Zungu Investments Co.
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.
Zama Khanyile, Umnotho Fund Manager at the NEF, says partnering with Zungu-Elgin will enable the NEF to 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 the NEF and government, through its macroeconomic policies, has identified manufacturing as a sectors needing greater volume of black participation.
Khanyile expresses delight that Zungu Investments Co. has come on board and taken the lead in the shareholding.
“It is a 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.