1. SMMEs in ICT SUMMIT: MTN SA: Technology Procurement Master Class
03 April 2018

2. Infrastructure Spend Areas Our Capacity Building Approach
Table of Contents
Introduction
Not Yet Uhuru
Infrastructure Spend Areas
Our Capacity Building Approach
Incubation and CSI programmes
Our commitment
Our Procurement Process 4)
We thank you for inviting us here today.
Our transformation journey is progressing but is far from complete and far more needs to be done in this regard.
We welcome the opportunity to engage with government as a key stakeholder about our future strategies and initiatives.  Today, we hope to answer all your questions tabled ahead of this session. Our presentation will therefore cover the following list in the slide
We are happy to address all further related issues and concerns

3. Introduction MTN is a company that was born out of democracy
Proudly South African Company with headquarters in Johannesburg, Gauteng
We have a presence in 22 markets in Africa
We use technology to empower communities – to lead the bold new Digital World

4. NOT YET UHURU
AS WE EXPAND, OUR PARTNERS IN TURN BENEFIT AND THIS BOOSTS INCLUSIVITY AND COMPETITIVENESS
Our transformation journey began years ago
You will see as we present and take you through our journey that while progress has been achieved in some areas there are others that still remain a concern.
We acknowledge this!
It is time for us to transform faster. The pace of change simply has to be stepped up both in our industry and across all other sectors.

5. Areas of Infrastructure Spend
Full Turn Key
Localisation of Service
Rural Community Participation
Shared Incubation Programmes
Manage Subcontracting Activity
NETWORK REGIONS:
NPR – Northern
GAN – Gauteng North
GAS – Gauteng South
KZN – KwaZulu Natal
FS – Free State / Central
ECP – Eastern Cape
WCP – Western Cape
Our spend relates to the above(Reference Slide)
In terms of network infrastructure build and maintenance we are subject to market context as there are only 3-5 OEM globally who can deliver these services i.e. Huawei, Ericsson, ZTE
Our role is to ensure that we are not dictated to by these OEM but we have to bear in mind we are limited to an extent given these OEM are able to subcontract work out to whoever they wish to.
There remains extensive opportunities for increasing SMME opportunities and participation on service related to network infrastructure build.
The biggest opportunity is in network infrastructure build space.
Speak to local spend on network build.
Cite relevant case studies and examples

6. Closing the Gap between the Past and Today
FUNCTIONAL AREA
ACTIVITIES
IT Infrastructure Services
Hardware, Storage Management
IT Services
Applications, Architecture, PMO
Network Deployment
Data Centre Management, HVAC, Network Build, Energy Management, Project Management
Technology Enterprise Services
Fibre Rollout, Field Services, DCIM
Transmission
Microwave, RAN, CORE
30% for Technology Spend set side for EME’s and QSE’s, directly contracted to MTN
Drive inclusion of EME, QSE, BO enterprises into the MTN SA supply chain by actively engaging the industry & onboard them and do real business.
At least 12% of our Technology spend to be with BWO
We have numerous policies in place that determine our overall procurement spend especially in relation to SMMEs
We remain committed to our transformation imperative and despite these current issues we do have some positive stories to tell
We are aligned to the codes and this requires an ongoing and steady focus
Speak to closing the gap between the past and today
What is MTN currently doing to ensure equitable distribution of work to SMMEs
Plans in place going forward in relation to increasing spend on SMMEs

7. Mobile RAN & Transmission
Technology Opportunities in
Domain & Program
Mobile RAN & Transmission
Network Rollout in Top200 places
Rural & Road Coverage (Project NIP 2018)
EBU & Iconic places Coverage
Network Capacity upgrades – Radio & Transmission
Customer Experience improvements – Cell Extenders
Core, Transport & OSS
National Long Distance Network deployment (Project NLD)
African Coast to Europe cable connectivity (Project ACE)
Metro fibre deployment
Network Capacity upgrades – IP Core
Network Modernization – IP Core
Network Capacity upgrades – PS Core
Network Virtualization – IMS
CEM Implementation – Phase 2
OSS & Tools
Fixed Broadband – Smart Village FTTH
FMC Enterprise – FTTB Access and Services
FTTB Rollout
EBU Managed Networks – Connectivity
EBU Managed Networks – WiFi
EBU Managed Networks – Platforms
Network Facilities, Mechanical & Electrical, Structural
BTS Structural and Civil Upgrades
Network Availability improvement
Energy Efficiency
Technical Facilities Upgrades
BTS Equipment Managed Services

8. Our Capacity Building Approach
Supplier Development
Skills Development
Job Creation
Localisation
Pillars
Black Owned
Black Women Owned
EME / QSE
Designated Groups
Focus Groups
Evaluation
MTN’s B-BBEE evaluation criteria is set-up so as to benefit SMMEs, Black Owned and Black Women Owned entities (80% of the overall B-BBEE scoring is directly related to this).
Virtual
&
Physical Incubation
Mentoring & Coaching
45 Beneficiaries 100% Black Owned (28 Youth &
11 Women Owned)
Gazelle Partnership
NGM Partnership
MTN Zoner’s
Early Payment for SMMEs within 10 days avg
SMME Fund
ESD Programmes
Can we make sure that we speak to and address questions 4, 5 and 6 as per the portfolio invite.
SMMEs are the drivers of the economy with numerous active employees.
In order to remain relevant and operational these entities need adequate and need timeous payments
At the same time SMMEs remain at the mercy of large corporates and are often bullied by these large entities with regard to payments
MTN does have an early payment system and process in place.
At present we are currently in the process of revising this with our finale system process to be announced in due course.
Cite favourable case studies and examples

9. (2016-2017 ) Incubation Programme Participants
To include elements of MTN’s successful business incubator programme
Speak to the fact that MTN has signed on these incubator suppliers for 2-3 year contracts
Suppliers on a 2 year contract are being revised to include an additional 3rd year
Nomaciko to further speak on related issues within this space.
eCubed

10. Contracted SMME’s (July 2016- Ongoing)
eCubed

11. Our Commitment Transforming our industry
Enhancing access to services and opportunities for SMMEs
Finding working ways to enhance SMME growth
Creating Innovative solutions and partnerships
Commitment:
We are committed to transforming our industry and contributing towards an equitable society by enhancing access to services and opportunities for SMMEs.
We believe NDP targets can be achieved by building on the successes we have achieved over the last few years.
While we operate under strict regulatory constraints and risk parameters we are working on ways to manage these risks and at the same time continue to drive SMME growth well into the future.
Innovative solutions and partnerships will be the key to success and in this regard we have made some significant strides, but intend to do far more in the future.
In conclusion:
We have brought in stabilised leadership with a clear focus to balance the inconsistencies we have seen over the years.
Yes we admit that it is a mixed picture.
We are not yet there in terms transformation be it holistically or within the SMME space, however we have policies, systems and guidelines in place but we feel we have to do more to rectify the imbalances.
Our transformation journey remains on-going and will never be complete.
We remain committed to the principles of transformation as we see it as a critical business imperative.
Transformation acts as an enabler to SMME’s creating a conducive climate for job creation, employment and economic growth.
If SMME’s succeed, we all succeed.

12. Q & A

13. HIGH LEVEL PROCUREMENT PROCESS
April 2018

14. Procurement & Tender Process
Business need resulting in sourcing event
Review Shortlist & award Tender to Preferred Supplier
High level step
Registration process
Create sourcing event
Supplier evaluation
Document the legal brief
Step output
Potential List of Suppliers
Registered new Suppliers
Supplier responses
Shortlisted Suppliers
Contract
Awarded Supplier & contract

15. Procurement & Tender Process
Business need resulting in sourcing event
Procurement (Sourcing Specialist)
CFST
Procurement
(Sourcing Specialist)
Procurement (Sourcing Specialist)
Procurement (Sourcing Specialist)
Procurement
Assess business requirements vs potential Suppliers
Receive Business Request
Perform research & consult SSH
Set up CFST & Schedule Kick-off
Potential list of Suppliers

16. Procurement & Tender Process
Registration process for new Suppliers only
Supplier
Procurement
Supplier
Procurement
Procurement
If Supplier meets min requirements, Supplier completes pre- qualification process
If new, Supplier registers via Supplier Self Registration process
Identify if new or existing Suppliers (if existing, skip to next slide)
Verification & validations
Approve Supplier
IBM e-sourcing Platform
Privacy Notice
POPI Killer questions
Privacy Notice
POPI Killer questions
Supplier consent
Third Party Privacy and Security Questionnaire
IBM e-sourcing Platform

17. Procurement & Tender Process
Create sourcing event
Procurement
Supplier
CFST
E-Source
System
Capture & publish Sourcing Event on e-Source
Capture & submit response to tender on e-Source
Evaluate potential Suppliers
Send invites to selected Suppliers
Tender Closure date
TPQ Outcome
Recommend TPQ Type
Tender Pack includes the TPQ
Selection of TPQ Type

18. Procurement & Tender Process: Supplier Evaluation
Tender Chairman
CFST
Procurement (Sourcing Specialist)
Tender Chairman
CFST
Tender Chairman
CFST
Analyse Supplier’s responses
Download Supplier responses
Present and share with CFST (evaluation session)
Evaluate Suppliers
Shortlisted Suppliers
Presentation
Including the PoPI Compliance

19. Procurement & Tender Process
Adjudication
Supplier contracting
Contracts
Adjudication Board
Procurement
Adjudication Board
Procurement
Procurement
Procurement
Contracts
Document contract & include appropriate clause
Present to Adjudication
Award Tender to Preferred Supplier
Document the legal brief
Present to Contracts department
POPI Compliance status
POPI risk ranking
POPI Compliance status
POPI risk ranking
POPI Compliance response to be included
Clause type? According to risk: Type A clause (med or low risk) or
Type B Data Transfer Agreement (High risk)

20. Tender Evaluation Criteria
Weighting
Technical
35.0
Financial Due Diligence
5.0
B-BBEE
20.0
Safety Health & Environment (SHE)
Quality Management
Total Cost of Ownership
25.0
Standard Terms & Conditions
Total
100.0
MTN’s B-BBEE evaluation criteria is set-up so as to benefit SMMEs, Black Owned and Black Women Owned entities.
80% of the overall B-BBEE scoring is directly related to promote Black Owned, Black Women Owned and SMME participation within the supply chain.
We aim to ensure a fair process in terms of RFP etc.
Any relevant SMME is welcome to participate in all tender processes
We partner with relevant SMMEs based on needs and local requirements.
All tenders issued by MTN for technology spend includes an allocation to SMMEs
Add in elements of the MTN Gazelles and how MTN currently partners with government on this
MTN is in the process of relooking at its Tender Evaluation Criteria to be more inclusive, equitable and adequately reflect the demographics of SA.