The Kwezi Group, an empowerment company with ambitions of being a dominant player on the African continent in infrastructure development services, mining equipment supply and  information and communication technologies, has increased its equity stake in Kwezi V3 Engineers to 70%, thus effectively creating South Africa’s largest black-owned multi-disciplinary engineering consultancy.

Kwezi’s chairman and founder, Sipho Mahamba, says the deal which runs into tens of millions, is of strategic importance to Kwezi and Kwezi V3 in two key areas – business growth and the development of human capital. Kwezi first acquired a 40% stake in the consultancy in 2001.

“We have aspirations for growth in South Africa and other African countries. We believe Kwezi V3, with its core competencies and significant pool of professionals and a robust and efficient training programme, is well poised to contribute to the South African Government’s mega-infrastructure projects and to other infrastructure development opportunities on the African continent. We also believe that through our growth, we can create further exciting challenges in the various engineering disciplines for all our engineers.”

Kwezi, which was established in 1997, has interests in South African toll operator Intertoll, routine road maintenance and mining equipment supply.

Founded in 1977, Kwezi V3 Engineers, whose chairman is Dr Franklin Sonn, a former South African ambassador to the USA, has grown to be one of the leading multi-disciplinary engineering consultancies in southern Africa. With 27 offices in South Africa and offices in other African countries and Abu Dhabi, Kwezi V3 employs 500 people, 60% of whom are historically disadvantaged. The thrust into the rest of the African continent is spearheaded by a recently appointed director, Jonathan Horn.

The chief executive officer of Kwezi V3, Francois Jacobs, says the BEE partnership has been a recipe for success for Kwezi V3.

“Since embarking on  our partnership with the Kwezi Group in 2001, we have seen annual turnover rise by more than 40% to top R200 million and assets have increased by 30%. Our board plays an active role in providing strategic direction to the company and in seeking new business opportunities. In addition to Kwezi’s involvement at the operational and strategic levels, Kwezi assists our recruitment efforts through its access to a highly qualified pool of previously disadvantaged individuals. Such assistance is critical for the sustainability of our growth.”

Jacobs says that 70% of the consultancy’s training budget is spent on developing previously disadvantaged employees.

Mahamba says that, with the increased BEE shareholding, Kwezi V3 plans to accelerate and catalyse transformation across all tiers of management. To expedite this process, Loyiso Toyi, a director of Kwezi V3, has been appointed chief operating officer to champion growth and transformation.

Mahamba says that in addition to participating in local infrastructure projects, international growth is a central strategic objective to Kwezi V3.

“Kwezi V3 Engineers intends to develop a significant presence and design capabilities in certain strategic African countries and the United Arab Emirates. In Angola and Tanzania, joint ventures with other consulting engineers have already been established. To this end, negotiations have commenced in earnest with consultants and business leaders in the Congo, Namibia, Kenya and Senegal, to establish locally based companies, joint ventures or strategic alliances.”

Kwezi V3’s contribution to the growth of the SA economy and job creation, has earned the company a nomination from the Department of Trade and Industry as one of South Africa’s Top 300 companies in 2004.

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ISSUED FOR Kwezi Group/Kwezi V3
BY Michael Kerkhoff & Associates
INQUIRIES Francois Jacobs, MD, Kwezi V3 Engineers 021 913 2080/082 371 6729
               Sipho Mahamba, CEO Kwezi Group 011 844 3000/ 082 770 5877