Posted by Mteto Nyati
Managing Director, Microsoft South Africa

Microsoft South Africa has just received the nod from the South Africa’s Minister of Trade and Industry indicating that it is now a Level 2 Black Economic Empowerment (BEE) contributor. What this really means, is that the local subsidiary of the software company is the most locally relevant multinational IT company operating in South Africa (SA).

There is no other multinational that has yet shown this level of commitment to the restitution of past inequalities in SA’s business landscape, and it’s a great differentiator to government and to Microsoft’s trusted local partners, vendors and service providers.

What’s great about this for Microsoft – which does business with 7,500 partner companies and service providers in SA – is that these Government agencies and businesses make themselves more compliant and more empowered in the process – as BEE in South Africa is designed to have exactly such a knock-on effect, to inspire participation in the programme.

This network is already a major catalyst of economic growth and opportunity in South Africa, driving dynamic solutions for our customers, and jobs and opportunities throughout the industry. With the additional 20 points Microsoft SA received for our Broad-Based Black Economic Empowerment (BBBEE) equity equivalent programme, the company has even risen above the level of BEE participation of the top empowered companies listed on the Johannesburg Stock Exchange.

This illustrates our attitude towards investing into empowerment in South Africa – and also supports my views as leader of the local business –by being entrenched in the issues that drive South Africa’s government and business landscape, and by doing all we can to create a vibrant local software economy, Microsoft in South Africa can have a long and mutually beneficial relationship with the nation’s citizens.

While BEE in South Africa has in many cases become a contentious issue, Microsoft has shown that by doing it differently, it is possible to follow not only the letter of the law, but to follow the intent – economic and social development.

Microsoft SA has already announced the names of four sustainable, independent and majority black-owned software companies that Microsoft SA  will nurture and support under the equity equivalent programme, so that their solutions can compete on the world software service market.

On 10 June 2011, we furthered our commitment by opening a second public request for proposals (RFPs) – as Microsoft SA   would like to take a few additional majority black owned Independent Software Vendors (ISVs) on this journey to international competitiveness as part of our half a billion rand (USD 57.9m) upliftment programme.

Our relationship with the South African government has been further strengthened by the commitment we have shown to assisting where we can with the local priorities, of which education, skills and job creation are some of the most key to lifting the country out of a possible service delivery crisis.

I am of the school that believes software and other technologies, when properly used, can transform lives. Over nearly 20 years, we’ve aligned our programmes and investments in South Africa to support economic development, social advancement and greater dynamism in the local software ecosystem.

Microsoft has been running various programmes to make the world of computers more accessible and affordable for the majority of South Africans – and to unlock the potential of individuals, institutions and academia, NGOs, businesses and government entities by knowing how to use technology to its ultimate ability.

Our citizenship commitments include transforming local education, fostering local innovation, and creating jobs and opportunities – giving new hope to people with disabilities, enhancing the country’s education system, helping communities bridge the digital divide, supporting entrepreneurial ventures in many industries, and helping thousands of young graduates and school-leavers to develop skills and find good jobs.

To achieve all of these objectives, our Citizenship programme managers partner with local NGOs, government departments and service providers to reach and enrich the lives of hundreds of thousands of teachers, learners, students, graduate interns, SMEs, disadvantaged communities, differently-abled citizens and government employees each year. For a look at our Citizenship Report of 2009-10, please have a look at http://www.microsoft.com/southafrica/citizenship/index.html.

Through the success of the BBBEE programme over time, the market will grow to associate Black Economic Empowerment with real entrepreneurship, job creation, enterprise development and skills enhancement. This makes me sleep better at night – knowing that I – as a black South African working for a multinational technology leader, can make a difference in my country through the work that we do.