Even though Apartheid ended in the early 1990s, the Republic of South Africa continues to experience economic disparities based on race. Now Black South Africans (defined as people of African, biracial, or Indian descent) are getting a helping hand in redressing the socioeconomic wrongs of Apartheid. The Broad-Based Black Economic Empowerment Act, or the BEE Act, promotes the participation of Black South Africans, as well as women, youths, and people with disabilities, in their country's economy. BEE representation is much more than equal opportunity employment. All companies-public and private-must have BEE representation in every aspect of their organization, from shareholders to employees and executives, as well as exercise preferential procurement from other Black-empowered companies and facilitate the development of Black enterprise.

MEDITECH South Africa recently signed an empowerment deal with Black-owned Liseko Strategic Investments, a health care investment company that focuses on high-value opportunities. According to the terms of the deal, MEDITECH South Africa will relinquish 35% of its stake to Liseko over the next two years.

"The deal is worth between R20 million to R30 million, or $3.2 million to $4.7 million U.S. dollars," says John Tresling, CEO and managing director of MEDITECH South Africa.

Joining Forces, Sharing Vision
This partnership not only enables MEDITECH South Africa to comply with the BEE Act, but is a strategic alliance which enables the company to grow throughout South Africa and improve the delivery of health care services to previously disadvantaged people. Formed in 2003, Liseko's eight founding executives all have backgrounds in health care, five of whom are medical doctors with extensive business and policy backgrounds. MEDITECH South Africa believes that its new partner will make a substantial contribution towards future business growth, because Liseko is also committed to improving the delivery of health care services to all South Africans.

"We researched potential BEE partners for 10 years before entering into this empowerment deal with Liseko," explains Tresling. "Although many companies fit the demographic profile required for partnership, we were looking for a partner that shared our business values and ethics."

"We have a joint commitment to improving health care not only in South Africa but across the continent of Africa," says Dr. Fazel Randera, chairman of Liseko. "Medical technology is going to play a key role in this process."

Liseko is entitled to two positions on the Board of MEDITECH South Africa. Dr. David Sekete and Dr. Aslam Dasoo will represent Liseko; Dr. Dasoo has been appointed Chairman of the Board.

For MEDITECH South Africa, empowerment credentials means increased business opportunities, augmented market penetration, improved chances for the awarding of government contracts, and opportunities in the private sector. The South African economy, as a whole, is expected to flourish under the BEE Act, benefiting everyone and enabling the Republic of South Africa to finally reach its potential.

"For me personally," says Tresling, "this partnership with Liseko is the realization of a goal that I have been committed to for a long time. It is a partnership with people who share MEDITECH South Africa's values and long-term interests in advancing and enhancing health care delivery on the African continent and abroad."

What Exactly Is MEDITECH South Africa?
An independent company, MEDITECH South Africa is responsible for licensing, implementing, and servicing MEDITECH software in Africa and the Middle East, by adapting software developed by U.S.-based MEDITECH to local standards. Customers include laboratories, transfusion services, and gold mines, and are located in South Africa, Namibia, Botswana, Kenya, and Nigeria. In 2005, John Tresling established MEDITECH Holdings (Pty.) Ltd., an umbrella organization consisting of MEDITECH South Africa, MEDITECH Australia, and MEDITECH Properties. U.S.-based MEDITECH owns 26% of MEDITECH Holdings.

MEDITECH COO Howard Messing recently returned from a two-week visit to MEDITECH South Africa, during which he met with Liseko representatives. Messing believes that the new partnership between the two companies will only strengthen and enhance ties with U.S.-based MEDITECH.

"We're delighted that MEDITECH South Africa has entered into a formal agreement with Liseko," says Messing. "Together, we hope the three companies will be successful not just from a business perspective, but in having a meaningful impact on the delivery of quality health care in South Africa."