Franchising is an effective growth and sustainable model for developing black economic empowerment (BEE) companies in South Africa. Last year, Roshqott announced an engineering franchise model for its company. This year the company is taking a bold step forward with new changes to its structure.
The company’s engineering franchise model aims to develop skills and knowledge so that young engineers and entrepreneurs can realise their full potential, while building capacity and contribute to economic growth. Franchising also encourages an entrepreneurial culture which builds a sustainable foundation for global competitiveness at all levels.
The company aims to equip black male and female engineers with the necessary power distribution competencies which would enable them to take better advantage of the economic opportunities the growing energy sector offers, thereby gaining a stake in South Africa’s economic growth and development.
Roshqott has announced that changes to the company are being planned for 2018. The proposed changes are designed to meet the main challenges faced by the industry at large which result from poor economic activity and rapid economic transformation.
The company’s board has approved a strategy to deal with these challenges. This strategy includes an increase in the pace of Roshqott’s engineering franchises model to meet rapid economic transformation initiatives and drive market share growth; and to attract new investors and recapitalise the group.
Restructuring the engineering franchise model
Roshqott Energy Solution (RES), in its current business format, operates as an engineering, procurement, construction and management company (EPCM). The restructured model will see the company’s engineering, procurement and management (EPM) competence transferred to a newly formed company, Roshqott Power Enterprises (RPE). The newly formed company will act as the franchisor (see Fig. 1), whereas the restructured RES (the franchisee) will trade as the group’s construction vehicle and as the main contracting entity to customers under license (by means of a franchise agreement) to RPE. The board is pleased to announce the formation of Roshqott’s first BEE accredited engineering franchisee.
The company’s commitment to economic transformation can be seen in its intention to increase the BEE ownership of RES to 60%. Invitations for suitable partners which meet the required investor portfolio – a knowledge of the energy sector and an appreciation of its investment potential – are currently underway.
Contact Rui Marques, Roshqott, Tel 011 466-8355, email@example.com
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Source: EE plublishers