Nozala head and new Johnnic board member Salukazi Dakile-Hlongwane talks to Madeleine Wackernagel about putting management skills into practice
Adding value is a favourite expression of Salukazi Dakile-Hlongwane’s and one that she intends to put into practice as a member of the new Johnnic board.
“It is not enough to be part of management – we have to make a contribution. And to do that we have to learn about the business,” she says.
As head of Nozala, an investment group run by women, for women, and assistant general manager, specialised finance, at BoE NatWest, Dakile-Hlongwane is well-qualified to make a difference. And this week’s Johnnic bosberaad provided a perfect platform.
“It was an opportunity for the new board members to learn about the business, discuss strategies and discover the most effective ways to make a significant contribution. All the new directors were chosen for their ability to add value; this meeting was about putting those skills into practice.
“We don’t plan any overnight changes; there is no point in disrupting things for the sake of it,” she adds.
Besides, shareholders’ funds are at stake, so a prudent approach is appropriate.
“The capital we raised as part of the National Empowerment Consortium has to be repaid, so we won’t be taking unnecessary risks with our investment. Rather, we intend to work together to devise the best ways of getting the highest returns on our money.”
Nozala, conceived by Jean Ngubane, former convenor of the Women’s Coalition, has been going for seven months and already its shareholder base has grown to 300 000. Its mission is empowering women, regardless of colour, and its targets are the media, tourism, gaming and recruitment industries.
“We pinpoint economically active women within certain sectors. Thus, we have the Sactwu Investment Corporation, the Workers Investment Company and Afro Hair & Beauty Salons on board, as representative of whole sectors where women are prominently involved. That way we hope the spillover effect will spread the word to other organisations.
“We are also talking to the Women’s Coalition and the Women’s Investment Group, but discussions are still at an early stage.”
In order to distribute the benefits of Nozala’s investments as widely as possible, the group selects only businesses with good growth track records. Greenfield operations are avoided.
“It wouldn’t make sense to gamble on a new business; we have to concentrate on established companies that are obviously going somewhere. That’s why we’re targeting the financial services, hospitality and media sectors. That’s where the growth will come from.”
Making money is not Nozala’s only aim, however. Dakile-Hlongwane is keen to emphasise the group’s – and its management’s – potential pedagogical role: “I’m just a girl from Soweto and I made it. If I can do it, others can.”
Her influences were her parents, both primary school teachers, who made huge sacrifices to ensure that she and her siblings were given the best start in life. “Once you’ve seen someone go through those kinds of sacrifices,” she says, “you don’t want to repeat the pattern. But too many children nowadays expect everything on a plate; we have to make sure they are challenged enough to strive for greater things. All it needs is commitment.”
Nozala is not only about empowering its leadership either. Dakile-Hlongwane believes it has enormous clout as a role model although she admits it is difficult to reach – and teach – the most disadvantaged. But by setting an example and encouraging other black women into business, Nozala can help to change attitudes.
Job reservation for whites is not yet a thing of the past, she believes. “If companies had started sooner in their training programmes, we would see many more black people in top business positions. The skills are there, but they are often just overlooked.”
Upon her return from a 12-year stint with the African Development Bank in Abidjan, CTte d’Ivoire, Dakile-Hlongwane worked for First National Bank, one of only a handful of blacks in management. “It was hard for me to believe that they couldn’t find any blacks to fill the trainee positions. Job reservation may no longer be institutionalised, but it certainly still happens.”
Empowerment is not just a political issue but an economic one, and small businesses, often in rural areas, are an integral part of any growth strategy. No matter how small the business, Nozala is interested. Dakile- Hlongwane points to Ashanti, an umbrella group for rural businesses run by women in KwaZulu-Natal, encompassing basket-making and other craft projects, which is keen to join up.
“They are all important shareholders and we want to make sure we reward them well.”
With investors such as the Amalgamated Banks of South Africa, Sanlam Development Fund, Sankorp and Southern Life Future Growth, which hold 15%, Nozala is certainly not short of cash.
“We kept the institutional investment to 15% because we didn’t want to be tied. So now we are free to go anywhere, and invest anywhere,” says Dakile-Hlongwane.
Thus far that tactic has paid off handsomely.