Translations

WIPHOLD : A model for broad based empowerment

1. Organizational Governance

Strategy and organization

Sector Finance / Bank / Insurance

Year 2010

Country South Africa

Transmitter

Context

WIPHOLD (Women's Investment Portfolio Holdings) was founded in 1994 in South Africa by four successful black women executives as an organisation dedicated to women’s empowerment. It was borne out of the knowledge that South African women, while the largest contributors to the economy, both as producers and consumers, have historically been the most disadvantaged. They realised that true economic empowerment would require a process of wealth mobilisation and accumulation. WIPHOLD actively seeks opportunities to link core business activity to social development in a way which is profitable for the companies involved whilst simultaneously empowering recipient communities. WIPHOLD’s core founding principle of the empowerment and advancement of women and black people is embodied at three levels: ownership, employment equity and social investment.

Objectives

- To Empower women through business and support non-governmental organisations whose primary focus is development programmes pertaining to black women and/or children.

APPROACH

WIPHOLD’s business focus for:

Building operational businesses: currently concentrated in financial services, with other sectors, including infrastructure sector and the resources sector targeted for operational involvement; growing a diversified portfolio of strategic and value investments; replicating WIPHOLD's business model in the African continent.

Investee companies:

- Strategically enhance value and extract synergies between their investee companies

- Mobilise the purchasing power of shareholder base

- Identify new business opportunities derived from BEE (Black Economic Empowerment) policy implementation in areas such as: enterprise development; procurement; new product development; and distribution access in historically unserved markets.

Internal Structure:

60% of WIPHOLD’S shareholding and economic participation is in the hands of women. 50.3% of its shareholders are black. The broad-based nature of WIPHOLD’s ownership is evidenced by the fact that there are over 1200 direct women beneficiaries, and over 300,000 indirect women beneficiaries through NGOs. These women are represented in all nine provinces of South Africa.

The board of directors is 100% women, the executive directors are 100% black women, and the management and employee shareholding is over 70% black women.

CONTRIBUTION TO COMPANY PERFORMANCE

- Holding stakes in companies that have good corporate governance records, a track record of achievement, strong cash flows, and attractive growth prospects.