1. UPDATE ON SMEs RELATED MATTERS
Vodacom presentation to the Parliamentary Portfolio Committee on Small Business Development
Date: 13 March 2019

2. CONTENT Background SMEs Development by Vodacom Purpose
Vodacom’s Relationship with Mobax
Additional Measures
Progress Report
Way-forward
9 October 2019

3. SMME DEVELOPMENT BY VODACOM
Vodacom supports the development of SMEs in the ICT space
Our SME programmes aim to…
Provide business skills training specifically to growing ICT SMME’s
Early payment terms to ICT SME suppliers
Provision of asset support
Enterprise Development
Create products to assist SME businesses
Expand opportunities in retail
Enterprise and Commercial Business
Focus on increasing procurement opportunities for EME/QSE with specific focus on black owned and black female owned suppliers
Supply Chain Management

4. PURPOSE
The purpose of this presentation is to present before Parliament and the Parliamentary Portfolio Committee on Small Business Development the Progress of the matter between Vodacom, Mobax South Africa and Neela Trading
To furnish the Portfolio Committee with necessary steps that have been taken so far to resolve the challenges between Vodacom, Mobax South Africa and Neela Trading
Lastly, to furnish the PC with the resolutions and proposed way forward to address the said matter
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5. VODACOM RELATIONSHIP WITH MOBAX
Mobax South Africa has been Founded in 2002 being 100 % white owned
Since the founding stage Mobax has embraced BEE principles
Currently the company is 51% Black owned with 38% Black female Shareholders.
Mobax relationship with Vodacom:
Mobax are responsible for the an outsourced maintenance function, and part of it is the generator deployment scope.
Mobax sub-contracted the generator deployment scope and maintenance to Neela Trading,
Neela Trading is responsible for 3 of the 4 counties (i.e. regional sub-areas) in KZN region providing 41 static generators and 24 mobile generators covering 1400 sites
9 October 2019

6. ADDITIONAL INFORMATION: NEELA
Neela Trading’s scope has increased significantly from Nov 2017 when footprint was increased.
Coverage area of 1400 sites , 42 static generators, 4x bowsers and 24 mobile generators.
Neela Trading’s revenue from generator deployments has increased from R400k to circa
R 1.1m per month.
Their invoicing for generator refuelling has increased from R125k to R300k per month.  
Their invoicing for generator servicing has increased from R50k to over R 130k per month.
When required Vodacom has facilitated meetings between Neela Trading and Mobax, and largely on operational related issues.
If deemed necessary, Neela Trading will be placed on development programmes as part of our Supplier Development initiatives
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7. PROGRESS REPORT
As guided by the PPC, Vodacom facilitated a dialogue between Neela and Mobax on the 26 – 27th Feb 2019.
An agreement was reached between parties to continue to work together which agreement is to be negotiated and finalised before end March 2019.
A three months interim extension will be given to Neela subject to the formation of the commercial agreement between parties
Once all conditions has been adhered to in terms of the interim period – and subject to Vodacom’s ongoing engagement with Mobax, a longer contractual period will be negotiated
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8. PROGRESS REPORT CONTINUES…..
Both parties agreed to conduct a workshop which will take place on the 14 – 15 March 2019.
The workshop discussions will focus on the following areas:
Commercial
Invoicing
Operations
Health and Safety
Contracting
All parties agreed that Health and Safety is a non negotiable requirement to ensure that every party is safe and to save lives of the people
How disputes between Vodacom and small businesses could be resolved without the involvement of other parties.
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9. WAY FOWARD
All parties will come together and negotiate new commercial agreement.
Vodacom has put together a team to facilitate the negotiations between the parties and the negotiations will be based on two principles:
Transparency and Fairness
Reasonable commercial considerations
Regular Governance & SHEQ meetings in place to improve performance & compliance
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9 October 2019