Transformation strategy
Ukhamba is an investment holding company created in 1998. B-BBEE shareholders hold 53,1% of Ukhamba's 11,7% shareholding in Motus. The Ukhamba Holdings structure ends in June 2025, with Ukhamba shareholders scheduled to receive their Motus shares around October 2025.
Strategic priorities
(we score full points)
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Transformation strategy. | |
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Transformation strategy. |
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Employment equity. | |
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Employment equity. | |
(we score full points for enterprise and supplier development)
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Supporting inclusive procurement and enterprise development. | |
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Supporting inclusive procurement and enterprise development. | |
(we score full points)
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Contributing to community upliftment. | |
Our transformation strategy applies only to the South African operation and is designed to position Motus as a Level 4
B-BBEE contributor.
Achieving this level will maintain our commercially competitive position and ensure our sustainability and relevance through positive contribution to the development of our domestic economy and society as a whole.
- The amended Department of Trade, Industry and Competition's B-BBEE Codes of Good Practice's (dti Codes) stringent minimum requirements, including high levels of black ownership in South African businesses.
- Finding equity partners with the right strategic alignment and blend of competencies and capital aligned to our ability to fund partnerships that yield longer-term returns.
- Transformation at top and senior management level given limited new management positions in a negative growth economic climate, exacerbated by COVID-19.
- Between 75% and 80% of our procurement spend is with or linked to established OEMs with whom we have stringent distribution and franchise agreements. The remainder of our procurement spend can be directed to B-BBEE compliant suppliers or EMEs and QSEs; however, this low percentage can sometimes result in a discounted procurement contribution in our B-BBEE rating.
- Smaller suppliers do not always have the capacity to meet our product specifications and accreditation requirements, particularly for core and high-spend procurement categories, or to support our geographic dealership footprint.
How we measure our performance
Group-wide transformation strategies, projects and targets are developed, co-ordinated and monitored at head office and filtered into the business segments. Engagement with CEOs, managing directors and HR and B-BBEE managers across South Africa, ensures the correct implementation of strategies to achieve the Group's B-BBEE objectives. Certain business segments and divisions have B-BBEE working groups to drive the achievement of Group objectives.
Our B-BBEE reporting system collates standardised B-BBEE data monthly from all business segments and monthly reports are compiled for operational executives.
The Group measures its transformation progress against the dtic Codes. The consolidated Group scorecard is published at the end of September every year on the Motus website. Individual businesses also maintain scorecards where a B-BBEE rating is required to participate in their markets. All scorecards are independently verified annually.
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B-BBEE certificate: https://www.motus.co.za/environmental-socialgovernance/our-people/. |
Our Employment Equity Plan to 2023, which covers employment equity and skills development, is submitted to the Department of Employment and Labour (DoEL). We also submit annual reports on our progress and compliance. The Employment Equity Act also requires that our Employment Equity Plan includes the barriers to transformation based on a workplace analysis. Targets are set for race, gender and disability at each occupational level for each business segment and consolidated at a Group level. The achievement of employment equity targets is linked to short-term incentive awards.
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Group transformation projects
Black-owned dealerships
About the project
In partnership with Toyota South Africa, we are opening a majority black-owned satellite dealership in Tembisa, Gauteng, operating under the existing Toyota dealership code, with Motus providing operational support and training. Motus has a minority share in the dealership. A high-level capital budget of around R25 million has been approved.
Progress in F2021
We have purchased the property with building processes having commenced.
Looking ahead
The dealership is expected to be operational towards the end of the 2022 calendar year.
Makhaya – informal sector mechanics project
About the project
The Makhaya project aims to create a sustainable micro-network of informal sector mechanics, providing them with equipped non-OEM branded workshops, technical support and SME-linked business training. These semi-formal, second tier workshops are located in or adjacent to our owned or franchised network of aftermarket parts or pre-owned dealership sites, or as independent joint ventures.
Aftermarket Parts is a supplier to the network and provides credit to purchase stock as well as preferential pricing. The businesses are closely monitored and are given reasonable access to our value chain and customers. Not only does the initiative support enterprise development and sustainable incomes, but it also contributes to the safety and reliability of vehicles that are 10 years or older and which many South Africans rely on.
Progress in F2021
To date, two workshops are open; based in Alexandra (Gauteng) and KwaMhlanga (Mpumalanga), supporting 10 mechanics.
Looking ahead
Two new sites are under development and will be operational later in 2021, and beyond this, an additional two workshops are being considered.
Project Q
About the project
In partnership with a local taxi association in KwaMhlanga, Mpumalanga, we opened an independent parts retail store in March 2020, serving the association's members. Motus provides guidance to taxi owners and operators on the suitability of products with special emphasis on safety critical components. The combination of the supply of quality parts at affordable prices and technical skills training contribute towards enhanced roadworthiness of taxis and passenger safety.
Progress in F2021
Unfortunately, the project was delayed during the year due to conflict among taxi associations; however, we are still vested in the project as being the social partner that provides parts to the communities that need them.
Looking ahead
The initiative will form the foundation for further partnerships with other taxi associations.
2021 performance and looking forward
Group (South Africa)
In the Importer business, there are 30 independent black-owned Hyundai, Kia, Renault and Mitsubishi dealerships out of a total of 188 dealerships.
B-BBEE scorecard rating
Aiming to achieve a
Level 41B-BBEE rating (F2020: Level 6)
We are targeting a Level 4 rating as a result of improved scores in management control, skills development and procurement. The OEM scorecards have a knock-on effect on our points for procurement. All OEMs have committed to the Equity Equivalency Programme that aims to improve their scores; this should positively impact their scorecards as well as ours. Revised OEM scorecards are expected around December 2021.
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B-BBEE certificate: https://www.motus.co.za/environmental-social-governance/our-people/. |
4 At the date of report sign off, the B-BBEE verification was still being finalised.