On a steady path to greatness - Financial Mail 3 May 2010. In just a few years, this entity has proven its critics wrong by continuing to perform well.

ICT solutions provider Gijima has grown in stature over the past few years and a significant portion of this growth could be attributed to the group’s black economic empowerment (BEE) credentials.

The group has carved a niche as a provider of ICT solutions in the public sector, where BEE credentials are a critical factor in the awarding of business. Close to 50% of Gijima’s business is sourced from the public sector. About 17% of the group’s business comes from the mining industry, in which empowerment practices are closely guarded through the mining charter.

It is therefore not surprising that Gijima has featured regularly in the Top Empowerment Companies (TEC) survey. For the 2010 TEC edition, Gijima assumes, for the second time, the position of the most-empowered entity in the IT sector of the JSE. It has also cemented its place within the overall rankings and occupies position 12 this year.

Gijima produced a total BEE score of 78,21%, which is derived from an even contribution throughout the broad-based BEE scorecard. The group’s black economic interest is quoted at 43,9% and the same goes for voting rights. Black women economic interest rests at 16,9%. That helped Gijima claim maximum points, plus one bonus point, within the ownership element of the BEE scorecard. Black representation at board level comes to 50%, while it is 25% at executive management.

These credentials flow from Gijima’s fascinating history, which helped put two black leaders at the helm — chairman and main shareholder Robert Gumede and CEO Jonas Bogoshi.

Gumede raised eyebrows in 2005 when he decided to merge his successful business, Gijima Info Technologies Afrika, with a struggling listed entity called AST. He became executive chairman in 2007. This proved to be a match made in heaven as the resultant entity, Gijima, has progressively improved its financial performance. In June last year revenue was quoted at R3bn, representing a growth of about 100% since Gumede’s entry in 2005. Profit margins have improved significantly from about 3% to close to 10%. Gijima’s business focus has grown to cover the southern African region and it also has offices in Australia and Canada.

“When I look back over the past four years, I realise just how much we have achieved as a new company,” says Gumede. The amalgamation of the two companies created a company that covers the entire ICT services spectrum.

Gijima’s empowerment credentials are evenly spread across the broad-based BEE scorecard. In the 2010 TEC data, the group got 8,5 points out of a possible 10 in the management element and took 6,5 points out of 15 in employment equity. It also claimed 18,6 points for preferential procurement and 15 points on enterprise development.

“We believe that only an empowered, high performing leadership can create an environment that unleashes the energy of people to create and contribute to the success of Gijima,” says Gumede. “We have now created a tremendous platform.”

Bogoshi, who was appointed as Gijima CEO in 2007, says the group is expecting 10% growth in the current financial year despite harsh trading conditions. This is largely due to a renewed focus of the business. “Two years ago we undertook a strategic review of our business,” says Bogoshi. “We decided that to deliver superior shareholder returns our strategy should focus on profitable growth, market leadership, service excellence and being seen as an employer of choice,” he says.