Desco is not only a family-run business, but one that also looks after its extended “family”. Desco prides itself in looking after the environment and the people that rely on this very environment. Desco believes that by empowering workers with extra and sustainable sources of income, poverty will be alleviated. It is from this background that Desco has positively incorporated Black Economic Empowerment (BEE) provisions in its business operations.

While the failures and successes of BEE are highly debatable, many businesses have positively responded by doing equity share transactions while some have created employment schemes and empowerment schemes for their employees. Desco Electronic Recyclers is listed among business entities making a huge contribution to ensure that the BEE policy succeeds and uplifts many people economically and socially.

One of the major beneficiaries of the BEE program is Amos Mahlamba (58), who is the proprietor of Jabulani Metal Recoveries. The business relationship between Amos and Desco dates back to 1998 when he was just a regular scrap metal collector. After a long-lasting relationship with Desco, Amos became a sub-contractor for Desco around 2015.

Amos now has his own offsite E-Waste company with 5 employees working for him and 8 employees at the Desco yard. Amos plans to recruit 4 more employees this year for his offsite facility and 6 more for the Desco yard due to increasing demand for his services.

“This business has really helped me and many other people. Apart from the satisfaction of seeing other people under me financially empowered, I’m now able to take care of my family and can even afford to finance my children’s university education” says Amos.

Desco takes keen interest in the progress of the subcontarctors they work with and ensures that necesary assistance is granted where its possible to ensure sustaibility.

“Let me honest, I will stick around and work with Desco for many years to come because its a great business relationship. For example,the process is underway fror them to assist me to buy a truck to ease my transportation challenges and then I will repay them in instalments over a period of time” confirms Amos.

One other person who continues to reap great returns from his relationship with Desco is Philip Uamusse (48). Philip started working for Desco from 1996 but is now a proud owner of Green Life Recyling. In 1996, Philip got a rare chance of being engaged as a sub-contractor through Green Life Recyling.

As a family man with 5 children, Philips life took a turn for the better since he started working with Desco.

“You know I have a family, before Desco it was hard to take care of my children, now I can afford to send them to school and two of my boys have even been working with me in this business learning how to recyle. I will soon be 50 years, so im hoping that they take over my business once I think of retiring. I started with 8 guys and now I have 14 workers under me, thats alot of growth over the years, if my plan to buy a truck for transportation this year works,I will expand even more” says a proud Philip.

Desco’s unique empowerment initiative started in 1998 with 2 informal subcontractors (way before BEE came into play). The highest number of contactors that Desco had empowered at one time was 10. Desco currently has 4 registered main offsite sub-contracts which are Jabulani Metal Recoveries, Selolo Recycling, iLanga E-Waste Management and Green Life Recycling) who have all been assisted in becoming formal E-waste recyclers.

How does Desco’s BEE programme work?

• The way it works is that Desco employees are given the first choice to become  BEE subcontractors and the second choice goes to an existing Desco e-waste supplier.
• They become familiar with the business and the operation of a responsible E-waste recycler through a free Desco training program.
• Desco Identifies potential selected employees and encourages them to start their own business.
• Should they choose to accept Desco’s proposal they are then provided with pre-processed stock (containing no hazardous fractions) and starting capital.
• The Subcontractors take the stock to their own facility and dismantle it and sell back the fractions to Desco at a higher rate. Fraction of waste refers to the grouping of waste according to its properties. Each waste group or classification is called a fraction.
• Once more income is generated, the sub-contractor grows to start sourcing their own material to dismantle and sell off fractions to get higher returns.
• A trading business (through responsible recycling) is created to become a formal recycler. A formal recycler is a registered recycling which handles e-waste within Desco but also can handle e-waste recycling externally.
• A secondary income stream is; should Desco require additional support onsite to process E-waste, each sub-contractor is given an opportunity to come onsite and provide a labour service to Desco for one week at a time.
• Sub-contractors are not charged rent for space used within the Desco premises. Additionally, tools and vehicles are made available free of charge.

By creating such a vibrant programme, Desco not only provides employment and income generating opportunities (job creation) for many people but allows employees and sub-contractors to gain access to a much larger market and other business opportunities. This allows them to reap the benefits of being BEE compliant through preferential procurement. Larger businesses through BEE are also incentivised to do business with Desco because it improves their own B-BBEE score.

” I cant describe the feeling we get as business owners to see lives of so many people and their families unplifted through this initiative.We currently have solid sub-contractors we are working with but seeing how much difference it makes in peoples lives makes me think its possible we may consider more in the near future”, concludes Desco’s head of marketing and finance Giulio Airaga.

Desco policy is to become smaller by creating a network of smaller BEE companies/contactors than just being one big company which is associated with many risks.

Desco can be contacted here.