BUSINESS DAY TV: We are creating a legacy that changes the way philanthropy works
Intellidex chairperson Stuart Theobald discusses how the financial benefits of black economic empowerment deals filter down to charities
Stuart Theobald is Intellidex chairperson. BUSINESS DAY TV: Philanthropic activity in SA is set for a major growth spurt as a number of empowerment deals undertaken over the past decade or so start to mature. That’s according to research house Intellidex, which has completed a study into the value of empowerment deals, and endowment effect on poor communities. Chairperson Stuart Theobald joins us now. Stuart, I suppose the first empowerment deals were really struck in the early 2000s in the mining and in the financial sectors. Have they all largely left a legacy on the communities where they operate? STUART THEOBALD: As you say we’ve reached a phase where a lot of deals are maturing so it’s moving from having shares that are tied up against debt that was incurred to buy the shares in the first place. And they’re resolving and you’re ending up with a net asset value — the difference of the value of the shares now compared to the financing costs. And that net value is ending up in tru...
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