Participation in South African waste company - HVC Groep

HVC has acquired an interest in Tedcor, a privately held waste collection company operating in a number of South African townships. We are investing not only capital but also knowledge and experience.

Tedcor involves the local community in the challenge of waste in the townships. The quality of the living environment improves as a result of the structured collection of household waste and the removal by local residents of litter from the streets, and this in turn stimulates other positive developments in terms of housing renovation and business activity. 

Truck with container
Tedcor recruits people to collect waste from the unemployed living in the area. Entrepreneurs are contracted to undertake the waste management service for each area and Tedcor assists them when they are setting up their business. They are equipped with a truck and container, bought by hire purchase, and then recruit other unemployed people from the area to clean up the litter on the streets. 

A thousand jobs
The municipality pays Tedcor for carrying out these services, and Tedcor in turn pays its entrepreneurs for the use of the vehicle and personnel. After five years, the usual term of the contract, the entrepreneurs own their vehicles outright. For each entrepreneur some 10 to 15 jobs are created. Currently, Tedcor is working with approximately 70 entrepreneurs, involving roughly a thousand jobs. The management of Tedcor assists and facilitates entrepreneurs and ensures that they acquire a collection contract. 

Tedcor International
Tedcor would like to develop these activities elsewhere in Africa as well, and has set up Tedcor International for the purpose. Talks are being held in Rwanda, Kenya and Mozambique. Our participation in Tedcor International is designed to contribute to the necessary start-up budget. In addition, we will be contributing our knowledge and experience in the field of waste collection and recycling, in the same way as for Tedcor South Africa. 

Investment
We have acquired shares worth €130,000 (5% of the issued share capital) in Tedcor Ltd. In addition, we have invested a sum of €500,000 in Tedcor International (40% of the issued capital). The latter investment was made through a special purpose investment vehicle in which we have a 90% interest.