Isizwe Hospitality was founded by former Phumelela staff in August 2004, when the contract with an external catering company ended.
Phumelela assisted staff to set up the new company, which has a significant BEE shareholding. 50.1% of Isizwe Hospitality’s shareholding is held by its staff, through the Batho Pele Trust, while the remainder is held by management. Today, Isizwe has a staff compliment of 45 and handles catering and hospitality requirements at Turffontein and the Vaal. This business continues to perform well beyond expectations with conferencing revenue in the year under review recording record growth.
Tsoaranang Holdings is another example of Phumelela’s initiatives involving staff.
Tsoaranang was established by former Phumelela IT Support staff, following Phumelela’s decision to outsource the IT Support function. To that end, the company provides field support and services betting terminals and communications equipment at TAB branches, agencies and racecourses.
Tsoaranang, which employs 38 IT professionals, has also performed well for its shareholders in recent years. The company has grown from only servicing Phumelela, to also include external clients in its portfolio and its staff have been the major beneficiaries.
In keeping with Phumelela’s BEE culture, Tsoaranang has a BEE shareholding and a strong emphasis on skills development.
Building maintenance has been outsourced to Qhakazani Communications and Maintenance, an offshoot of Tsoaranang Holdings. Qhakazani maintains all Phumelela’s facilities at the Turffontein and Vaal Racecourses.
The company has warranted that a third of its issued share capital is beneficially owned by individuals designated as previously disadvantaged persons.