IzindabaIn this issue... Welcome from

Peter Vundla

www.amb.co.za AMB

I SSUE 1 - AUGUST 2005

A M B N e w s l e t t e r

On 13 May 2005, AMB celebrated its

first decade of business. This was an

auspicious event for a company that

was among the pioneers of black

economic empowerment in both its

own makeup and in the transactions

it structured for clients. In ten years,

AMB has rapidly become an authority

in the financial services field,

particularly economic empowerment.

This is reflected in the number of

transactions concluded and the calibre

of its client base.

Today, AMB is a mature organisation,

characterised by innovation and passion

and the strength and stability of

its intellectual capital, a singular

achievement in an industry known

more for its mobility.

We welcome feedback on our

newsletter, which will be published

periodically and is intended to examine

a broad range of issues affecting our

industry, from codes of practice and

charters, deal analysis and legislative

reviews to international corporate

activity. We trust you will find it

informative – e-mail your comments

to mailbag@amb.co.za.

Just as AMB literally wrote the book

on empowerment funding and

structuring, we intend to continue

contributing to the development of an

industry that plays such a crucial role

in our nation’s transformation.

Peter Vundla

Registration No 1995/003054/06

Authorised Financial Services Provider

amb capital limited

• Welcome fromPeter Vundla

• Snapshot of AMBover the past 10 years

• Our newempowerment partners

• Telecommunications -opportunities abound

• Empowermenttransaction betweenLereko and Imperial

• Clarity neededon empowermentscorecard credits

• AMB to establish hedge fund

• AMB’s 10th anniversary

• AMB in the community-fighting fire with care

This year marks the anniversary of one ofSouth Africa’s most defining moments.Fifty years ago, on 26 June 1955 inKliptown Johannesburg, the FreedomCharter was proclaimed by the Congressof People and the then head of the ANC,Chief Albert Luthuli. This importantanniversary is straddled by the 11thanniversary of South Africa’s firstdemocracy and the ninth anniversary ofthe National Constitution. A smallercelebration, but one that is equally asimportant in our lives is the tenthanniversary of AMB. Established on13 May 1995, it was founded on a visionof empowering change so that economictransformation in South Africa couldmirror the political aspirations of thenew government and the ideals of theFreedom Charter.

At AMB, in our own small way, weembrace the spirit of the Freedom Charterand our National Constitution, whereit states “South Africa belongs to allwho live in it, black and white, unitedin diversity”. To achieve this, we haveattempted to conduct ourselves and ourbusiness in such a way to develop andharness the potential of the diverse groupof stakeholders we look to serve.

With this in mind and as we celebrate ourtenth anniversary, we acknowledge themilestones we have passed on our way tobecoming a leaner, more focused andexperienced team that takes pride in theinnovative services we offer and whichderives as much enjoyment and fulfilmentfrom our own success as we do fromthat of our partners. As a specialisedempowerment financial services company,we seek to create a diverse range of alliances

and partnerships to pursue opportunitiesfor mutual benefit. It is through thispartnership ethos that we believe we canexploit growth and facilitate access to themainstream economy by all South Africans.

AMB was started in 1995 with three people,lofty ambitions and just R7 million in capital.The company’s aim to become the preferredadvisor to the emerging black business classwas visionary, at a time when empowermentwas little understood and not yet in vogue.Despite this, AMB maintained its focus andhas developed a brand that is synonymouswith empowerment in South Africa. Sincethen, others have followed, acknowledgingthe success of our early efforts and recognisingthe benefits to be gained from the momentumthat has now underpinned economictransformation through the various chartersand government frameworks.

Over the years, we have been integrallyinvolved in the formation of a number ofempowerment groups – from NAIL and RealAfrica through to women’s groupings, suchas Nozala, and regional groups, such asSiphumelele.

We have advised on landmark transactions,such as SBC’s acquisition of MTN back in1996, the NEC’s acquisition of Johnnic in1997, the IPO of Telkom in 2002 and morerecently empowerment transactions ingroups such as Alcatel, Coca-Cola, Nampak,Didata and Imperial.

Earlier this year in March 2005, we wereespecially pleased to announce theintroduction of our new empowermentshareholders, Krem and Ayishone, headedby Kennedy Memani and Eugene Ruiters,who will be our strategic partners in AMBgoing forward. We are excited aboutcementing what has been a long-standing

relationship with Kennedy and Eugene, andlook forward to meeting the challenges andcapitalising on the opportunities that wewill face over the next 10 years.

Finally, despite all the achievementsmentioned above, probably the mostsignificant contribution AMB has madeto the economy and to transformationhas been the number, diversity and qualityof people that have passed through ourorganisation over the past 10 years. It isalways sad to see good people leave.However, we have been fortunate enoughto see many of these individuals achievegreat heights at their new employers.Many of our people have rapidly ascendedto become leaders at their respectiveorganisations, whether it be at regulatoryand government bodies, state enterprises,private sector corporates or the establishmentof new empowerment groups.

We at AMB are proud to be South African,to be part of a company born in the newSouth Africa and of our contributions andachievements over our first 10 years. We,together with our new empowermentpartners, look forward to the next 10 yearsand the rewards and challenges that ourcommitment to empowering change willbring to ourselves and our diverse groupof stakeholders.

Andrew Sprague, CEO of AMB

Snapshot of AMBover the past 10 years

Continuing the momentum of black economicempowerment (BEE) deals in the financialservices sector, AMB has finalised the firststage of its empowerment process with theintroduction of strategic BEE partners intoits shareholding. In terms of the transaction,25% of the equity in AMB will be acquiredby Krem Investment Holdings (KREM) andAyishone Investments (Ayishone). Followingthis transaction and the Marchappointment of Kennedy Memani tothe board, AMB will have BEEshareholding (including shares held bymanagement and staff) of over 40%and empowerment representation onits board of 50%.

Krem is an established black-controlledcompany which has been involved in anumber of successful advisory mandatesand investments. It is led by KennedyMemani and Eugene Ruiters, bothchartered accountants with considerableexperience in public sector restructuring,privatisations, mergers and acquisitionsand private equity investment. Memaniis chairman of both the Eskom PensionFund and Nexus Connexion and adirector of various companies in whichKrem is invested. Krem was a founderof Nexus, the empowerment partner inthe second telecommunications fixednetwork operator.

In addition to the shareholdingtransaction, AMB and Krem haveestablished a joint venture, UmthomboCapital Ventures, that will targetse l e c ted me rchant bank ingopportunities in the public and privatesectors. This strategy is in line with ourphilosophy of creating value-addingoperational partnerships with empowermentpartners where we can add strategic valueto the growth of these groups.

Commenting on the deal Memani said,“I am excited to be involved with AMB asI believe it has been the pre-eminentempowerment financial services companyover the past ten years and a pioneer andcatalyst for empowerment in South Africa.I also believe the formation of the jointventure will allow us to become more

operationally involved with AMB and benefitfrom its infrastructure and capacity inpursuing opportunities”.

Ayishone is a newly-established companywholly owned by the Ayishone Trust, atrust set up for the benefit of previouslydisadvantaged individuals and businessassociates who can add value to AMB.

The directors of Ayishone and the trustees

of the Ayishone Trust are BEE luminaries andAMB executive directors Bunguza PeterVundla and Zenzo Lusengo.

The introduction of Krem and Ayishoneas shareholders in AMB is the first phaseof our BEE process and the next phase, tobe concluded in the next 12 months, willincrease our empowerment shareholding.To achieve this, there will be close co-operation between AMB management, thenew empowerment partners and Investec,which facilitated AMB’s empowermenttransaction.

Since delisting from the JSE, AMB has beenthrough a rigorous restructuring exercisewhich has resulted in a more appropriatecapitalisation, operational and staffing structuresto compete in the South African investmentbanking arena. We have focused on our nicheareas of excellence where we can provide acompetitive and sustainable offering.

The restructured AMB is focused on thefollowing business activities:

• Corporate finance, with a focus on BEEand private and public sector advisorymandates. Recent transactionsconcluded by our corporate financeteam include the introduction ofempowerment partners into the SouthAfrican operations of Dimension DataHoldings plc, Imperial Holdings Limited,The Coca-Cola Company and AlcatelSouth Africa (Pty) Ltd.

• Private equity, where we currentlymanage a private equity fund with aninvestment portfolio of R400 million.We have been involved in private equitysince 1996, raising funds of R800million, concluding 21 investmentsand fully realising 11 investments atan above-market average rate ofreturn. Notable transactions in 2004included the disposal of StuttafordsStores to its management team.

• Proprietary trading, using our local andinternational capital base to trade inlocal and international financialinstruments based on relative arbitragestrategies to ensure we earn suitablerisk-adjusted returns.

Industry charters, innovative financingstructures and the buoyancy of the SouthAfrican economy have increased the number,quality and sustainability of empowermentdeals being concluded and we believe thistrend will continue. Our approach of supportingnew empowerment groupings that share thesame vision and value system as AMB, andpartnering them in developing their businessesand strategies, positions us well to grow withour partners and capitalise on opportunitiesin growth areas such as traditional, alternativeand property asset management.

EMPOWERING CHANGE AMB

Our newempowerment partners

Kennedy Memani

Telecommunications is arguably the

most dynamic industry in the world.

New technologies like mobile telephony,

low-cost satellite services and high-

capacity wireless trunk links have

seen the total number of telephone

subscribers worldwide grow dramatically

since 1990.

In the four years to 2004, mobile

penetration increased to almost 9%

from under 2% on the African continent.

Given the limited roll out of fixed-line

infrastructure, mobile technologies

have leapfrogged traditional fixed-line

offerings and, today, there are more than

twice as many mobile users compared to

approximately 22 million fixed lines on

the continent, according to figures from

ITU Telecom 2004.

Yet, penetration rates for mobile telephony

are sti l l relatively low in Africa,

particularly in sub-Saharan Africa, where

penetration was below 5% at the end of

2004. South Africa has by far the highest

penetration rate in Africa at 36%.

The African region is fast evolving as one

of the industry’s key investment prospects,

given rapidly increasing levels of mobile

penetration, and rising levels of demand

for complementary telecommunication

technologies and internet access.

Understanding the role an efficient

telecoms platform can play in economic

development, most governments in Africa

fully support the sector’s development.

Continued market liberalisation is

reshaping the regulatory environment,

creating an attractive investment climate

which is stimulating the interest of

international players, and raising the

level of competition for the region’s

new licence opportunities, mergers and

acquisitions.

In South Afr ica , as part of the

liberalisation process, the introduction

of a second telecoms network operator

is expected to end the Telkom monopoly.

The local telecoms market has undergone

rapid change in the past decade since

the introduction of mobile telephony

in 1994 – from fixed-line, telegrams

and telex services to mobile voice and

data applications where internet service

providers use various platforms to drive

communications.

Deregulation in the telecommunication

industry remains mired in controversy.

The second fixed-line operator licence

has not yet been awarded, prolonging

Telkom’s monopoly of SA fixed-line

operations. Three cellphone operators

have been licensed, resulting in a plethora

of service providers. Foreign competition

in international fixed-line services is

increasing.

The advent of competition has forced

Telkom, long the driver of only fixed-line

services, to expand its product offering

and re-examine its cost structures. A

telecommunications monopoly is negative

for the South African economy because

the lack of competition forces internet

service providers to buy their backbone

from Telkom and hampers their ability to

deliver more effective communication to

customers, compete on price and operate

according to free market principles.

The much-delayed implementation of the

second network operator makes a

mockery of the liberalisation process

and denies service providers the right

to self-provision. We believe South

Africa urgently needs a second network

operator to introduce competition at an

infrastructural level and drive local

telecommunications into the 21st century.

With a decade of experience, AMB

has built strong relationships in the

telecommunications sector, having advised

on or invested directly in transactions

worth in excess of R4 billion involving

Telkom, MTN and Celtel.

Celtel is a good example of the potential

of the telecommunications sector. The

company has licences in 15 African

countries, mostly mobile and some

3 million proportionally-managed mobile

subscribers spread across sub-Saharan

Africa. AMB was an early-stage investor

in Celtel in 2001, attracted by the

combination of the enormous potential

of mobile telephony in the region and the

track record and operational expertise of

Celtel management led by Dr Mohammed

Ibrahim. When the Kuwaiti company, MTC,

offered to acquire Celtel in May 2005,

AMB exited its investment, realising

an internal rate of return of over 30%

and money back of 3,7 times the original

US$-based investment.

In the early years of the 21st century,

many foreign telecommunications

companies were leaving Africa. That

situation has now reversed and activity

levels are high on the continent, with the

issue of new licences, privatisations,

acquisitions and listings changing the

TELECOMMUNICATIONS

Telecommunications is arguably the

most dynamic industry in the world.

New technologies like mobile telephony,

low-cost satellite services and high-

capacity wireless trunk links have

seen the total number of telephone

subscribers worldwide grow dramatically

since 1990.

In the four years to 2004, mobile

penetration increased to almost 9%

from under 2% on the African continent.

Given the limited roll out of fixed-line

infrastructure, mobile technologies

have leapfrogged traditional fixed-line

offerings and, today, there are more than

twice as many mobile users compared to

approximately 22 million fixed lines on

the continent, according to figures from

ITU Telecom 2004.

Yet, penetration rates for mobile telephony

are sti l l relatively low in Africa,

particularly in sub-Saharan Africa, where

penetration was below 5% at the end of

2004. South Africa has by far the highest

penetration rate in Africa at 36%.

The African region is fast evolving as one

of the industry’s key investment prospects,

given rapidly increasing levels of mobile

penetration, and rising levels of demand

for complementary telecommunication

technologies and internet access.

Understanding the role an efficient

telecoms platform can play in economic

development, most governments in Africa

fully support the sector’s development.

Continued market liberalisation is

reshaping the regulatory environment,

creating an attractive investment climate

which is stimulating the interest of

international players, and raising the

level of competition for the region’s

new licence opportunities, mergers and

acquisitions.

In South Afr ica , as part of the

liberalisation process, the introduction

of a second telecoms network operator

is expected to end the Telkom monopoly.

The local telecoms market has undergone

rapid change in the past decade since

the introduction of mobile telephony

in 1994 – from fixed-line, telegrams

and telex services to mobile voice and

data applications where internet service

providers use various platforms to drive

communications.

Deregulation in the telecommunication

industry remains mired in controversy.

The second fixed-line operator licence

has not yet been awarded, prolonging

Telkom’s monopoly of SA fixed-line

operations. Three cellphone operators

have been licensed, resulting in a plethora

of service providers. Foreign competition

in international fixed-line services is

increasing.

The advent of competition has forced

Telkom, long the driver of only fixed-line

services, to expand its product offering

and re-examine its cost structures. A

telecommunications monopoly is negative

for the South African economy because

the lack of competition forces internet

service providers to buy their backbone

from Telkom and hampers their ability to

deliver more effective communication to

customers, compete on price and operate

according to free market principles.

The much-delayed implementation of the

second network operator makes a

mockery of the liberalisation process

and denies service providers the right

to self-provision. We believe South

Africa urgently needs a second network

operator to introduce competition at an

infrastructural level and drive local

telecommunications into the 21st century.

With a decade of experience, AMB

has built strong relationships in the

telecommunications sector, having advised

on or invested directly in transactions

worth in excess of R4 billion involving

Telkom, MTN and Celtel.

Celtel is a good example of the potential

of the telecommunications sector. The

company has licences in 15 African

countries, mostly mobile and some

3 million proportionally-managed mobile

subscribers spread across sub-Saharan

Africa. AMB was an early-stage investor

in Celtel in 2001, attracted by the

combination of the enormous potential

of mobile telephony in the region and the

track record and operational expertise of

Celtel management led by Dr Mohammed

Ibrahim. When the Kuwaiti company, MTC,

offered to acquire Celtel in May 2005,

AMB exited its investment, realising

an internal rate of return of over 30%

and money back of 3,7 times the original

US$-based investment.

In the early years of the 21st century,

many foreign telecommunications

companies were leaving Africa. That

situation has now reversed and activity

levels are high on the continent, with the

issue of new licences, privatisations,

acquisitions and listings changing the

TELECOMMUNICATIONS

www.amb.co.za AMB

opportunities abound

Leading advisors and investorsin telecommunications amb capital limited

Corporate Advisory Investment

US$90 MILLIONINTRODUCTION OF

SBC INTO MTN

UNWINDING OFEMPOWERMENT

SPV’S

R566 MILLION FUNDINGFOR EMPOWERMENT

GROUPS

EMPOWERMENTSPV FUNDING

EMPOWERMENTSPV FUNDING

EQUITYINVESTMENT

ADVISOR TOTELKOM IN IPO

Zenzo Lusengo

landscape of the sector in Africa. In mobile

alone, there are more than 12 African

operators active in 43 African countries.

Recent transactions in Africa, both fixed

and mobile, have increased the importance

of telecommunications to potential

investors. In addition to new licences,

consolidation is expected to accelerate

rapidly, with fixed line, privatisation and

market liberalisation being expected to

underpin growth. Attracting the required

foreign investment, however, will depend

on clear regulatory frameworks and stable

economic and political environments.

Given its track record in the tele-

communicat ions sector and the

above-average returns achieved, AMB

is well positioned to advise on structuring

future transactions that ensure far-

reaching transformation and equitable

participation in the sector’s potential.

As with all our proposed transactions, we

believe the challenge is to find ways to

assist empowerment groups in funding

their equity stakes to improve their level

of economic participation in a transaction.

To achieve this objective, AMB will

continue developing sustainable and

realistic funding models that literally give

a voice to thousands.

For more information, contact:

Zenzo Lusengo or Jamie Hollins

on (011) 215-2000.

Jamie HollinsEmpowermenttransaction betweenLereko and Imperial

AMB was proud to be involved in one ofthe largest empowerment transactionsconcluded in the mobility industry. Thetransaction is valued at approximatelyR1,4 billion.

AMB’s role in the transaction was thatof financial advisor to the broad-basedLereko consortium. The Lereko Consortiumis a vehicle specifically created for thistransaction and its shareholders areLereko Investments (62%), MalibongweWomen Development (15%), ZonkizizweInvestments (10%), black women’sgroups (8%) and Imperial and UkhambaCommunity Trust (5%). Lereko is theempowerment vehicle of Valli Moosa,Popo Molefe and Lulu Gwagwa.

AMB was particularly proud to be involvedin what is a signature transaction forLereko and its largest to date.

AMB’s involvement with Lerekooriginates with the establishment ofthe company in May 2004, when ValliMoosa and Popo Molefe left government.AMB advised them on setting up theirinvestment vehicle and providedinfrastructure and human resourcessupport.

Lereko’s positioning as a 100% black-held entity enhanced its attractivenessto Imperial. Some of the challenges infinalising this transaction included raisingthe required capital, section 38 of theCompanies Act and reaching a balancebetween the needs of Lereko as theempowerment partner and Imperial’sshareholders who were making the equityavailable. Over R800 million of third-party capital was required for thetransaction as well as R600 million ofnotional junior finance provided byImperial. An innovative mechanism,which did not contravene section 38 ofthe Companies Act, was designed toallow Imperial to contribute its funding.

We believe the transaction will benefitboth Imperial and Lereko and markanother step in the process oftransformation under way in our country.

EMPOWERING CHANGE AMB

Clarity neededon empowermentscorecard credits

Zenzo Lusengo

Total funds under management ofparticipating fund managers that themselvesare black-owned or empowered companiesincreased 147% from R3.4 billion atthe end of 2003 to R8.4 billion at the endof 2004.

According to the KPMG/Savca VentureCapital and Private Equity IndustryPerformance Survey 2004: “Although thisonly presents 23% of total qualifying fundsunder management it does represent asignificant increase from the 10% at theend of 2003”.

Zenzo Lusengo, executive director of AMB,says this increase is largely due to privateequity funds such as Brait and Ethosthemselves completing black economicempowerment deals.

“That’s phase one of transformation of theindustry, but in time we would like to seean increase in the number of blackprofessionals,” he says.

In fact, the survey reflects no increase in thenumber of black professionals during 2004.

The major BEE issue facing independentprivate equity funds at the moment iswhether investors would get scorecardcredits when investing capital with a black-empowered fund. It’s highly topical, saysLusengo, because many of the independentfunds are currently in a realisation mode –tidying up their last funds through disposingof investments, and have entered a newfund-raising stage for their next fund.

So the question is being asked of themregularly. “Whenever we approach privatesector funders like pension funds andinsurance companies, they want toknow if they will be scoring points interms of the financial transformationcharter scorecard. They are coming under

tremendous pressure to shift theirprocurement to black–owned businessand to do more in terms of empowermentfinancing,“he says.

“Unfortunately, while these institutions areinterested in investing in the assets class,we cannot give them a clear answer becausewe are awaiting clarity from the financialservices charter council on this issue”.

A solution suggested by Lusengo would befor the private equity industry to have itsown scorecard under the auspices of thefinancial services charter.

“ This would enable us to address questionssuch as: the ownership and control offund managers; the ownership and controlof the general partners;the demographic profileof a fund manager’sp r o f e s s i o n a l s a n dinvestment committee;the fund’s investmentfocus and the economicbenefit of procurementflows.”

The key issue in whetheran investment shouldattract scorecard credits forempowerment financingand procurement is theownership and control ofkey decision-making bodies.

“With the proposedprivate equity scorecard,i f a fund managerachieved a rating of, say70%, and a life assurerinvests R100 millionwith it, that investorshould get credi tsfor R70 mil l ion asempowerment finance.

“In addition, if the institution invests with theprivate equity fund manager, and on an annualbasis they pay it a management fee, they canalso get credits for the procurement of servicesfrom a black supplier,“ says Lusengo.

But for now, the issue is up in the air, andit is creating a bottleneck in investmentflows which could be used for empowermentfinancing.

“When there’s no clarity, everyone tends tohang back. Yet for independents, now is thetime to strike – there’s investor interest andopportunities to make investments in thecurrent market conditions, so we need ananswer“ adds Lusengo.

Eamonn Ryan - KPMG/SAVCA Survey. 28 April 2005.

AMB to establishhedge fund

www.amb.co.za AMB

Duke Erlank

In recent years, the hedge fund market hasexpanded exponentially. While publicperception tends to lump all hedge fundsinto the same broad category, there are infact 18 different single strategies and morethan 8 000 single strategy managers in thehedge fund universe. Globally, there areover 1 500 funds of hedge funds. In SouthAfrica alone, the hedge fund industry isestimated to be worth some R8 billion.

Statistics show that hedge funds haveoutperformed bonds and equities over thepast 15 years with considerably less risk thantaken by the other asset classes. Investingin a sound hedge fund as an alternativeinvestment class can enhance the returns ofa portfolio and lower the overall risk.

AMB’s market neutral equity tradingactivities produced an annual return of25.5% from 2000 to 2005 compared to anannual return of 8.5% produced by the ALSIover the same period. AMB has managed amarket-neutral hedge fund on its ownbalance sheet, focusing mainly on pairstrading across a broad range of industries.The returns of the AMB hedge fund are setout in the table below.

Backed by this solid track record, AMBintends to raise third-party funds to increaseits hedge fund to around R100 millioninitially. In accordance with FAIS, this willbe raised primarily through multi-managersmanaging private portfolios.

The South African hedge fund industry isin discussions with the Financial ServicesBoard to establish appropriate regulatoryoversight structures. This could be finalisedin the current calendar year and will, webelieve, give considerable momentum tothe hedge fund industry.

Contact Duke Erlank or Chris Vosloo on(011) 215-2000 for more information.

Disclaimer:This article is for interest purposes only andis not intended to constitute a solicitationfor funds. The hedge fund is not a regulatedactivity in terms of the Financial ServicesBoard.

Historical Performance:

(92%)

Sortino Ratio11/12 12.50No. of positive months

Sharpe Ratio7.24% 2.703 Month return

Annualised Std. Dev.8.11% 7.60%6 Month return

Historical Std. Dev.27.77% 2.19%Return (12 months to 30 June 05)

Max monthly drawdown27.77% - 1.67%Annualised return

2.44%May 058.00%November 04

2.26%April 052.96%October 04

1.80%March 051.66%September 04

0.74%February 051.85%August 04

- 1.67%January 053.19%July 04

2.01%December 04 2.53%June 05

Monthly Returns:

‘The above statistics were prepared by AMB’

AMB’s 10th Anniversary

Marking 10 years

On Thursday, 7 July 2005 we held afunction to celebrate our 10thAnniversary. Amongst the attendeeswere various dignitaries, clients,directors, staff and alumni. We weredelighted to have deputy ministerof finance, the honourable JabuMoleketi, as our key note speaker andguest of honour.

At AMB, we have since our inceptionin 1995 and in our own small wayembraced visionary ideals whereverpossible. We were born in the newSouth Africa as an organisationcommitted to empowering changeand facilitating the participation

of all people in the mainstreameconomy, particularly the previouslydisadvantaged. We believe that onlythrough the respect and unity of ourdiversity can we stimulate growth andemployment to restore human dignityto all the people of South Africa.

In our short 10 years, we have beenpioneers in empowerment transactionsat a time when empowerment was notin vogue. We have tried to empowerour diverse group of stakeholdersfrom clients to shareholders toemployees to suppliers. We have donethis through our advice , ourinvestments, the groups we havesupported, the people we have trained,the bursaries and scholarships we have

sponsored and the social responsibilityprogrammes we have supported.

Since then, others have followed,acknowledging the success of our earlyefforts and recognising the benefits tobe gained from the momentum thatnow underpins transformation throughthe various charters and governmentframeworks.

Our first ten years have beencharacterised by peaks and troughs.We have emerged stronger andfirmly focused on our course of beinga major factor in the South Africaneconomy, especially black economicempowerment. Watch us closely overthe next ten years.

Commemorating AMB’s first decade,a new corporate video tells the taleof a fledgling company that hasweathered the storms of marketmeltdowns, sectoral implosions andseismic economic transformation.The strength of the group’s foundationin empowerment has enabled it towithstand this onslaught and emergeas one of the leading brands in

empowerment transactions, focusedon long-term capital appreciationthrough partnerships with empowermentgroups that share AMB’s ethos andvalues. Well capitalised at R250 million,today’s AMB is focused on corporatefinance, private equity and proprietarytrading, with several promisinginitiatives emerging from the AMBincubator, particularly property and

hedge funds. AMB is well positionedin the South African economy, alignedwith the objectives of governmentand ready to play its role in achievingthose objectives.

For a copy of the video on CD orDVD, contact Gillian Dodds on(011) 215-2023.

EMPOWERING CHANGE AMB

18 Fricker Road, Illovo, Sandton, South Africa PO Box 786833, Sandton, 2146, South Africa

Tel: (+2711) 215-2000 Fax: (+2711) 268-6888 www.amb.co.zaComments: mailbag@amb.co.za

AMB in the community- fighting fire with care

Every year, thousands of people lose theirhomes and belongings to fire. Every year,hundreds of children are injured, orphanedor abandoned because of fire. Most of thesefires happen in the poorest communities,most of them happen in informal settlements.One woman is making a difference in theselives, single-handedly at first and now witha cadre of volunteers and caregivers. Thatwoman is Bronwen Jones.

AMB has supported Bronwen Jones and TheChildren of Fire Trust for over seven years. Thetrust was established to help severely-burnedchildren in poor communities receive therequired medical treatment. Its activitieshave since spread to fire fighting, fireprevention, first aid and the installation ofwater tanks, primarily in informal settlementswhere the risk of fire is high.

By paying her a salary, AMB has freedBronwen to attempt to repair shattered livesand to take her fight against fire to thehighest levels in parliament.

She is on call around the clock. The childrenshe cares for become part of her family ather home in Auckland Park, in theory atemporary arrangement. But Bongani spentmore time with her in 2003 and 2004 than

in his own home. Sizwe came, she thought,for a few days, but has now been with themfor over a year. Like many of the children,he had no surviving relatives interested inhis care and had been dumped in aninappropriate institution.

For the children of fire, if surgery or anyother intervention is to succeed, they haveto stay in a clean and safe environmentaround informed adults and close tohospitals, doctors and therapists. But allthis happens in a family home – not somelarge institution. And Bronwen has to feed,cook for, wash and dress these children.Some have no hands or only one hand, somecannot see, some are traumatised, rebellious,destructive, some are just babies with nappiesto be changed.

Through helping the children and squattercamp residents, a great deal of knowledgehas been gained that spans professions fromtown planning and hazardous materials tofire prevention, fire fighting, first aid, burns

surgery, reconstructive and plastic surgery,rehabilitation and psychology.

Bronwen also started the Johannesburg Schoolfor Blind, Low Vision and Multiple DisabilityChildren in January 2003. It is growing slowlybut now offers help to primary school-agechildren with disabilities. No one is turnedaway, regardless of income or level of disability.Even some high school pupils were helpedwho had nowhere else to go.

Every Sunday of the year, Bronwen runs areading scheme in a squatter camp that nowhas offshoots in Zevenfontein and inAlexandra. The school has two paid teachersand a paid assistant, as well as othervolunteer teachers and assistants, some ofwhom receive subsistence and travel costs.

Bronwen oversees lesson plans for the school,administers all the volunteers and the paidstaff and organises for all the children toget to surgery and safely home again – oftento the most rural homes.

For all the children touched by her trust,Bronwen Jones is mother, doctor, cleaner,teacher, legal advisor, campaigner,psychologist, occupational therapist, speechtherapist, emergency services worker,policewoman, journalist, environmentalhealth inspector and engineer.

Join us in supporting this Herculean effort.For more information, contact GillianDodds at AMB or Bronwen Jones atThe Children of Fire Trust, (011) 726-6529,www.firechildren.org

Donations can be made to:Children of FireAccount number: 614 920 23919First National BankMelville, Gauteng, RSASORT 25-65-05

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