Worker BEEs
Redressing some of South AfricaÔÇÖs past inequalities can be rewarding both socially and economically, as Dan Bailey learns.
In just about a yearÔÇÖs time, the finest footballers on earth will take the attention of the world to South Africa. Each of the countryÔÇÖs principal cities is pouring huge amounts of effort and resources into new infrastructure in the hope that they can receive some of the kudos that came to China for its staging of the Olympics.
In this respect, Cape Town already has a head start. ItÔÇÖs one of the most beautiful cities in the world, but it will soon have another attraction in the form of a brand new 68,000-seat stadium not far from tourist destinations at the city center and the historical waterfront. After the games are over, 55,000 seats will remain permanently, while corporate suites will be retrofitted in the released space.┬á
A key part of the construction community working on Green Point Stadium is one of the oldest construction companies operating in the Western Cape. Martin & East was established in 1950 as a general building contractor. Two years later, the quality of its work was recognised by being accepted into the Master Builders Association, to which it still belongs. On the whole, though, Martin & East is today known for its civil engineering construction work, undertaking major road surfacing and building projects. 
When the first game kicks off in June 2010, everybody at the stadium will one way or another have Martin & East to thank. Dozens of extra planes arriving at the airport will be parked on new aprons built by M & E. Arrive in Cape Town by car and youÔÇÖll almost certainly use one of two new link roads built by the company. To get to the stadium youÔÇÖll need to drive along a newly resurfaced Granger Road Boulevard. Alternatively, two new bus routes have been built to ferry spectators to the games. All this is in addition to the three billion Rand contract it has had to provide all the earthworks at the stadium as well as laying the hundreds of thousands of paving stones spectators will wander over. If your team gets knocked out of the tournament, you can always play a round of golf on the new course built to replace the old one where the Green Point Stadium now stands.
Over the years Martin & East has developed a wide range of interests and skills, forming additional companies to perform specialist work. For example, Zebra Bituminous Surfacing was established in 1984 to provide asphalt services. Tiffany Construction opened up in 1996 building up-market houses. Isidima Civils, on the other hand, is an empowerment company where the HDI staff from the group own 100 percent of the shares.
For businesses to do well in South Africa, they need to take heed of the countryÔÇÖs Black Economic Empowerment (BEE) policy, which is described not simply as a moral initiative to redress the wrongs of the past but as a pragmatic growth strategy that aims to realise the countryÔÇÖs full economic potential.
In the decades before South Africa achieved democracy in 1994, the apartheid government systematically excluded African, Indian and coloured people from meaningful participation in the countryÔÇÖs economy, creating not only much poverty and suffering but also a profoundly sick economy, with GDP growth stagnating in the 1970s.
The country is now looking for an economy that can meet the needs of all citizen groups in a sustainable manner, an objective that calls on fulfilling the potential of all people and communities throughout the country. It acknowledges that there is still a wide racial divide between rich and poor, which is not likely to create a socially or politically stable populace. However, BEE is not merely affirmative action, hoping to redistribute the wealth of the country. Rather, it is a growth strategy, targeting inequality amongst sectors of the population.
Martin & East is a committed advocate of empowerment. As well as providing employment for a thousand hourly paid workers, it also helps gifted students make the best use of their talents. Skills shortage is addressed by sponsoring 35 school students per year for maths and science, while 40 university technology students are sponsored each year. To demonstrate that this is not just window dressing, itÔÇÖs useful to know that three current company directors were trained through this program 20 years ago.
