The deal, valued at some R161.5 million, comes into effect on March 1 of this year and will also ensure interalia that Kwezi is represented on the Board of Directors of Aberdare Cables.

Aberdare Cables, the leading power and telecommunications cable manufacturer in the Southern hemisphere, forms part of the JSE-listed Power Technologies Limited group, (Powertech), which, through this latest deal, has re-emphasised its commitment to securing meaningful black economic empowerment in South Africa.

Kwezi is one of South Africa’s fastest growing entirely black-owned emergent empowerment companies with a focus on operational and strategic management. Its investment philosophy is to identify and focus exclusively on core areas where it can add value – such as communications, information technology and financial services sectors. As a company, Kwezi is led by seven black professionals and its stakeholders include a number of community leaders plus 30 other young black professionals, active in both the public and private sectors.

Powertech’s CEO, Robbie Venter, says the milestone deal includes real empowerment for a broad base of black entrepreneurs, rather than for specific individuals who have already been generously empowered.

"The sale of the stake in Aberdare Cables to Kwezi is the continuation of a series of partnerships with black businesses. It underlines our commitment to the creation of significant, profitable, black partnerships in various Powertech group companies. Our group supports the national imperative of economic and employment equity and affirmative action, not only because it constitutes a moral stance, but because the development of a stable, equitable society in South Africa makes sound business sense," he said.

"I am confident that this latest deal will contribute significantly to the development of an economic and social order reflective of the country’s demography and African culture. Kwezi will be an active partner in Aberdare Cables and will add significant value to the affairs of the company, especially in our sales and marketing efforts to large parastatal customers."

He said he was sure that Kwezi’s skills, passion, energy and commitment would help thrust Aberdare Cables to even higher international ratings. " The medium and longer term benefits of this partnership will contribute to the future growth of both Aberdare Cables and the greater Powertech and Altron groups."

He said Kwezi would be funding the purchase in an innovative manner which would not place an onerous burden on its shareholders. "This forms part of Altron’s policy of enabling and assisting black partners with their funding, and other requirements. The mechanism we have used to fund the deal specifically encourages a long term approach and a true partnership which does not depend on external funding," said Venter.

Powertech is a member of the R7-billion per annum JSE listed Altron group, where other empowerment partners include Rethabile, Masemo, IT&T Afrika, Investfem and Global Village Network Technology.

Chief Executive of Kwezi, Sipho Mahamba, says his group is delighted with the deal which offers Kwezi exciting and excellent prospects for future growth in an internationally rated and recognised company.

"I believe that Kwezi’s association with Aberdare Cables, and the greater Powertech group, will enhance the transformation process of the company and will comprehensively benefit a wide range of black people by bringing them into the mainstream of the economy through human resources development, healthy labour relations, skills transfer and training."

He said Kwezi would be adding value to Aberdare Cables by providing specific skills. "These include networking at all levels, including government, promoting Aberdare and the concept of the use of local products, intelligence gathering, assistance in affirmative action policies, advice on black empowerment strategies and social responsible programmes."

Aberdare Cables has manufacturing plants in Johannesburg, Port Elizabeth, Cape Town, Pietermaritzburg, Pretoria and overseas, in Portugal, and employs more than four thousand five hundred staff members.

Aberdare is the major manufacturer and supplier of telecommunications cables for Telkom, as well as to a large number of private network operators, both in the public and private sectors. Aberdare also manufactures and supplies energy and instrumentation cables to Eskom and a wide variety of industries, including the mining, transportation, petrochemical, manufacturing and general industries. Demand for its optical fibre products is ever increasing, especially from Telkom.

Aberdare currently accounts for 42 percent of Powertech’s total exports of approximately R300 million.