Developing Small EnterpriseTedcor has 20 years of experience in supporting the development of small enterprises in its supply chain, a capability which could be of tremendous benefit to corporate clients who wish to maximise their BBBEE (Broad-Based Black Economic Empowerment) scorecard.
TrainingTedcor is the only industry player in waste management in South Africa that has a formal training programme. It is also affiliated to the Services Education Training Authority (SETA).
MentorshipTedcor employs account managers who provide ongoing mentorship to the Community Contractors (CCs).
TestimonialsTedcor has, in the last 20 years of its existence, trained hundreds of members of local communities to become Community Contractors (CCs), while creating thousands of jobs within the communities where it operates.
One of the leading waste management companies in South Africa
- Tedcor Group (Pty) Limited ( “Tedcor” or “ “the Company”) was established in 1996 on the principles of development and empowerment of local communities through waste management services, creating new enterprises and creating local jobs. The business has grown to become one of the leading waste management companies in South Africa;
- The Company’s approach involves a critical, local economic development component providing sustainable, quality waste management services undertaken by local entrepreneurs through their “path breaking” community based contractors/partnerships (“CBC”) model;
- The company currently has more than 35 CBCs that employ over 500 previously disadvantaged workers.
- Tedcor provides business support to community based contactors through:
- Initial working capital funding through its NCA registered entity Teebac (Pty) Ltd;
- Subleasing of equipment to the entrepreneurs through leasehold agreements;
- Provides insurance products to the entrepreneurs through a self funded insurance fund;
- Contract management through the company’s experienced contract managers who liaise directly with the municipalities;
- Fleet management services; and
- Business administration services and financial management systems.
The business model is designed to empower communities serviced by the company through recognized training programs and community based contracts that promote enterprise development and job creation
- The Tedcor approach relies upon public-private partnership arrangements between local level entrepreneurs, the community, the local authority, the private sector and Tedcor.
- The Tedcor approach provides local authorities with a unique opportunity to support local economic development while also ensuring cost effective, quality service delivery. To date, there has been more than 3,000 individuals that have passed through the Tedcor model (no CBC failures) with the flow through benefits impacting on more than 30,000 people.
- When Tedcor is appointed to undertake waste management services, Tedcor initiates a feasibility study and thereafter a process within the community to identify and appoint local entrepreneurs. Applications from potential entrepreneurs are drawn from the local community in a transparent process that involves the relevant structures.
- Tedcor ensures that the entrepreneurs use quality equipment, and assist them in getting the appropriate finance.
- Tedcor is also fully responsible for ensuring sound financial management of the business venture, for the duration of the contract period, and supporting entrepreneurs in this regard.
- Following an interview process, entrepreneurs are appointed, trained, and then established as independent business entities to provide waste management services in subsections of the broad contract area.
- Once established, entrepreneurs hire local labor to undertake the work. The approach maximizes the job creation potential of municipal service delivery while locating the associated risks within Tedcor.
- Throughout the entire process, Tedcor remains at the centre, managing the public-private partnership and ensuring that the CBC has developed the capacity and skills to fulfill their responsibilities.
A platform presenting a scalable and sustainable operational opportunity: Tedcor is currently present in four provinces, of which two produce a significant portion of the country’s waste: Gauteng and the Western Cape.
The Tedcor Value proposition
Key Investment Considerations
Unique Business Model
- Tedcor has been operating in the sector for 20 years and has a proven business model that provides an unique blend of waste management services, creating new enterprises and creating local jobs in the market;
- Tedcor’s model of working through community based contracts to integrate their operations with the local communities they service has been in developed for 12 years. As a result significant know how vests within the management team. A new entrant into the market area will need to invest significantly to reach the same stage of development;
- The business model is designed to empower communities serviced by the company through recognized training programmes and community based contracts that promote enterprise development and job creation; and
- A significant opportunity exists in Africa for this model. Furthermore, management has active plans to increase the company’s waste management business and to move into the waste minimization and waste to energy sectors in the near future.
- Over the years, the company has built lasting relationships with over 20 municipalities throughout Eastern Cape, Gauteng, Mpumalanga, North West, Northern Cape and Western Cape;
- Tedcor has presence in the top three provinces where majority of the country’s waste generated;
- Tedcor is a significant player in municipal contracts for servicing previously underserviced areas. Over the years, the company has serviced over 80 areas translating to over 600,000 households; and
- Through its business model, the Company offers its clients an opportunity to maximize their business development score in the B-BBEE score card; and
- Tedcor is a level two contributor to B-BBEE which is further expected to improve as part of the Proposed Transaction.