October 3, 2007

Barloworld Ltd launches its initial R20 million Enterprise
Development Fund

Barloworld Limited, today (October 3) is pleased to announce the launch of its Enterprise Development Fund – Barloworld Siyakhula as part of its endeavour to facilitate enterprise development and foster sustainable Broad Based Black Economic Empowerment (BBBEE).

Barloworld Siyakhula, a wholly owned subsidiary of Barloworld Ltd, will provide financial and non-financial support primarily to small and medium suppliers, contractors and enterprises as well as assist in the exploration and development of Greenfield business opportunities within the Barloworld value chain.

Speaking at the launch, Barloworld chairman Dumisa Ntsebeza said that the birth of Barloworld Siyakhula also stems from the Group’s alignment with the Accelerated and Shared Growth Initiative of South Africa and the Department of Trade and Industry's Codes of Good Practice on BBBEE.

“Barloworld is committed to enterprise development and transformation and we have demonstrated this commitment again today. We have also accelerated the process of transformation at all levels throughout the company. We believe that we are not simply addressing a compliance issue but are responding to a socio-economic imperative and taking up the challenge as a recognised leader in transformation in South Africa,” added Ntsebeza.

Barloworld Siyakhula houses an investment fund with an initial capitalisation of R20 million. Barloworld aims to make a considerable contribution to the process of transformation, job creation and skills transfer in South Africa through partnerships and investments in emerging SMEs.

Siyakhula will work closely with the following divisions – Barloworld Limited, Barloworld Motor, Barloworld Logistics; Barloworld Equipment – and entails investment in black empowered and black owned SMEs, complementing Barloworld’s established BEE strategies for preferential procurement, enterprise development and corporate social investment.
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“Siyakhula, derived from the IsiZulu word meaning ‘we are growing', is part of Barloworld’s intentional and strategic approach to transformation,” says Isaac Shongwe, executive director, who is driving transformation for the company. “The creation and development of SMEs has been proven time and time again to be the most logical and effective method of bridging the economic divide and building sustainable wealth in many countries. The time has come for Barloworld to make a visible difference.”

The fund will provide affordable, accessible knowledge and funding to potential black investors as well as to existing companies seeking to achieve sustainable transformation.

The fund is currently invested in five businesses which collectively employ 152 people, 64 of whom are new employees, appointed since Siyakhula’s investment. Together these businesses generate a combined annual turnover in excess of R82 million.

Barloworld Siyakhula has invested a collective R18.7 million in equity and loans in these investments:

1. Trade Skills 118 (Pty) Ltd t/a Avis Van Rental Pretoria, a franchise which offers a wide range of open and closed vans, bakkies and light delivery vehicles as well as 4x4s for commercial and leisure use.

1. Western Cape Van Rental (Pty) Ltd t/a Avis Van Rental, a similar franchise operation to the above but operating in the Western Cape region.
2. Romador 147 (Pty) Ltd t/a Moe & Company Owner-Drivers deals with the development and management of owner-driver schemes across the country.
3. Papavangelo Trading 291 (Pty) Ltd t/a Nathi Africa, a business which specialises in the sale and hire of Hyster forklifts and other materials handling equipment, and provides regeneration solutions for large industrial batteries primarily at the Durban Harbour.
4. Rubber Lay (Pty) Ltd, a manufacturer of crumb-rubber matting used in a range of flooring, soundproofing and building insulation applications.

ENDS

Photographs of the event, as well as the respective investee companies, are available on request or by download from the Siyakhula website: www.barloworldsiyakhula.co.za

Media queries:
Thuli Senosi                                                                Matthew Govender
Barloworld Ltd                                                             Barloworld Siyakhula
Tel: 011 445 1155                                                       Tel: 011 445 1041 / 083 644 8212
thulis@barloworld.com                                               mgovender@barloworld.com

NOTE TO EDITORS:
About Barloworld
Barloworld is an international and focused distribution company with a presence in South Africa, the United States, Asia, Europe and Australia. Founded in 1902, the group operates in the equipment, motor and industrial distribution sectors. It offers customers business solutions backed by leading industrial brands, supported by service, relationships and attention to detail. These include the sale of products and services, rental and fleet service options.
Barloworld invests in the future by entering into development partnerships to empower people through programmes that conserve biodiversity and the environment, address education, develop strong, responsible leaders of tomorrow, reduce poverty, develop skills, support arts and culture, combat crime, regenerate communities, fight HIV/Aids, empower women, youth and the disabled and develop sports.

Recent milestones in the areas of BEE

1. Kalema Technologies & Plant Hire, a black owned and youth led company based in Mangaung (Bloemfontein), has acquired R3-million worth of equipment, over and above its existing fleet of 15 Cat machines, from Barloworld Equipment.
2. Recent BEE appointments include Dominic Sewela as chief executive officer of Barloworld Equipment South Africa and an executive director of the Barloworld Ltd; Isaac Shongwe as an executive director ; and Sibani Mngomezulu, as the head of investor relations and corporate affairs.
3. In May 2007, Barloworld Coatings announced that it has concluded a BEE deal with empowerment consortium Izingwe Holdings. The deal saw Izingwe acquire a 15% stake in the automotive re-finish distribution business of Barloworld Coatings.
4. Barloworld Ltd recorded a preferential procurement spend of R346 million through procurement transactions with empowered suppliers during 2006.
5. In 2006, Barloworld Motor Franchises (South Africa) was awarded a Level 6 BEE rating on the basis of the BBBEE Codes of Good Practice that were released at the end of 2005.
6. In 2005, a 25% stake in Barloworld’s Logistics Africa business was sold to the Letsema Consortium, led by Barloworld executive director Isaac Shongwe. Letsema paid R118 million for its stake, and Shongwe, who has extensive experience in the logistics sector, was appointed to an executive position in the company.
7.  Afripack is operating well under Nozala Investments which purchased 75% of the business. The company continues to meet its profit and growth forecasts, and Nozala repaid its vendor loan to PPC a year earlier than expected.

About Barloworld Siyakhula
Management:
The Barloworld Siyakhula board of directors comprises Peter Surgey (chairman); Ian Stevens, group general manager administration; Sibani Mngomezulu, group head of investor relations and corporate affairs; and Matthew Govender, who has been appointed as managing director of the Fund.

Advisory and management support services are currently provided to Barloworld Siyakhula by Katlego Syzygy (Pty) Ltd, a specialist consultancy in the field of enterprise development.

Application and selection process:
Commercially viable candidate projects may be nominated by divisions or may apply directly to the fund whereupon they will be screened by Barloworld Siyakhula. A comprehensive business plan and investment proposal is compiled for successful candidate projects pursuant to feasibility studies and these are submitted to an investment committee for consideration.

Upon approval by the investment committee, the board will then ratify or reject the investment proposal. If successful, a due diligence exercise will be conducted on the candidate business and, subsequent to a clean due diligence report, legal agreements will be drafted and signed for the business to commence operation.