Overview

Morvest’s transformation approach takes cognisance of the diversity in South African society, and is based on equal dignity, respect and opportunity for all. Transformation is a business imperative and as such is a key focus of management, forming part of their key performance assessments. At the same time the group recognises BEE as an integral driver of economic and social transformation in South Africa. Morvest therefore continually strives to achieve improvements in all the key areas.

As a result of changes to the Codes and steeper weightings for certain areas of the scorecard, especially in skills and enterprise development, Morvest received a rating of Level 3 in August in the current year. The assessment was based on the financials of the year under review. Morvest has set the target of regaining Level 2 by the end of the 2013 financial year. To this end we have further set clear targets for each area of the scorecard, dovetailing with targets set for each business unit. As has been done in the past, progress in achieving these targets will be measured twice yearly so that trouble spots can be identified and redressed to ensure constant advancement.

Monthly monitoring of BEE targets at each business unit and a formal report thereon contributes to the bi-annual assessment of progress. Improvement of equity partnership remains a priority. Further, the goal for the next financial year and beyond is to elevate to the optimal Level 1.

Morvest has in place formal policy documents to assist in achieving transformation objectives, which codify processes and guiding principles – namely a Procurement Policy, Recruitment and Selection Policy and Training and Development Policy, Skills Development Plans and a formal Social Responsibility Strategy.

Preferential Procurement Policy

A formal preferential procurement policy is in place which reflects the group’s commitment to broadening its supplier base with empowered enterprises on a preferred basis. Centralised procurement ensures that all suppliers are vetted for their BEE status to achieve targets.

Morvest recognises that it is in the best interests of the group to empower SMMEs, which in turn funnel their competence and expertise back into Morvest. The group therefore remains committed to encouraging black entrepreneurship with its assistance, to establish and expand sustainable and commercially viable SMMEs in the black community. 95,2% of all procurement spend was from locally based suppliers for the year under review, of which 17,9% was to BEE and 7,9% to SMMEs.