It is a pleasure to be here today. Because unemployment is one of the critical problems facing this country, your government asked USAID to help create jobs in South Africa. We agreed. USAID works with South Africans in Business and Government to increase sustainable, market-driven jobs for the historically disadvantaged. Experience throughout the world shows us that small business growth-such as demonstrated by Phambili Services-generates the greatest job creation and equity. Vincent Charnley is living proof. Phambili's CEO started his business five years ago with two employees. Today, he employs more than 120 staff. Vincent, I expect your latest corporate merger will attract new clients as well. You will undoubtedly add another one hundred staff to meet the demands and high standards you place on serving Phambili's customers.
USAID has supported the goals of the Growth, Equity and Redistribution (GEAR) initiative launched by South Africa's Government in 1994 in a variety of ways. One of these keys has helped to unlock Vincent's vision for Phambili. In 1997, USAID put a specific project in place that assists entrepreneurs while supporting the Government in transferring ownership of appropriate state-owned enterprises to private hands. This activity encourages privatized assets to be distributed equitably among the historically disadvantaged.
Under this project contract, Deloitte Touche Tohmatsu (DTT) Emerging Markets works with the historically disadvantaged to participate in the privatization process. Privatization includes-but is not limited to-the selling of assets, outsourcing of services, and employee buy-outs. DTT assistance includes developing business plans, finding and negotiating with strategic partners, valuation of assets or business, raising financing and negotiating with the seller.
Today's celebration offers a wonderful example of not only the benefits of Deloitte's assistance, but the fruits of hard work and entrepreneurship by Phambili Services. Two dynamic senior managers joined Vincent at the helm-Reggie Nkosi and Alex Charnley--to further spur the company's growth. Phambili Services started as a micro-enterprise bidding on the outsourcing of waste management contracts in Soweto. USAID's project with Deloitte assisted them to grow by providing assistance on multiple tender bids, restructuring their corporate finances, and ultimately negotiating a merger with Wasteman Specialized Cleaning, a division of Wasteman Group, a French company.
What is so encouraging to me is that Phambili, a 100% black owned company, has grown from a micro-enterprise to a solid medium business that is now positioned to be a national player in waste management. This is not a joint venture with an empowerment partner. This is a merger in which Phambili will hold senior management positions in the new company. In my opinion, this is truly a milestone and inspiration for Black businesses in South Africa. It is also a testament on how to create jobs that last in South Africa.
Forward, Phambili!
