RNS Number:3143G
Management Consulting Group PLC
13 December 2004


      MANAGEMENT CONSULTING GROUP PLC PIONEERING EMPOWERMENT IN SOUTH AFRICA

Management Consulting Group PLC, today announces that it is the first
international management consulting group in South Africa to create a
black-owned and empowered company.

Management Consulting Group is selling a 51% equity stake in Proudfoot
Consulting Africa (PCA), a productivity consultancy in South Africa, to two
empowerment groups; Vuya! Investments (Pty) Ltd and Chrims Investments (Pty) Ltd
for undisclosed deferred consideration.

Following the completion of the sale in January 2005 Vuya! Investments and
Chrims Investments will respectively have a shareholding of 45% and 6%.
Management Consulting Group will retain a 49% shareholding in PCA.

Kevin Parry, Chief Executive, Management Consulting Group comments: "Proudfoot
has been in business for more than 50 years and I am pleased that we continue to
innovate in order to grow the business. In doing this deal we are demonstrating
a strong long-term commitment to South Africa. We have been looking for
empowered partners for some time who will play- active roles in developing our
business in the region. We firmly believe that the skills of our international
management consulting firm matched with the credentials and contacts of our
black empowered partners will result in great success for all parties".

Dr Paula Huysamer, Chief Executive of Vuya! says: "We are delighted to invest in
an international management consulting firm. We believe in investing in
companies with a strong market position that can add benefit to all aspects of
South African business. PCA will be an asset to our portfolio of black empowered
investments. We look forward to actively promoting PCA to business and
government as we believe their strength in productivity consulting can add value
to many organisations".

                                      Ends

For further information please contact:

Management Consulting Group PLC                             001 212 521 0200
Kevin Parry, Chief Executive                         (5 hours behind UK time)

The Maitland Consultancy                                    020 7379 5151
Michelle Jeffery

Notes To Editors

Management Consulting Group PLC comprises two consulting businesses: Proudfoot
Consulting and Parson Consulting.

Proudfoot Consulting is a specialist management consultancy which implements
sustainable operational improvements in sales, costs, overheads, major capital
expenditure projects and production output, typically at no net annualised cost
to its clients. The company has been established in South Africa for the past 15
years and is active in the public and private sector.

Parson Consulting is a financial management consultancy that improves the
accuracy, speed and efficiency of finance and support functions free of auditing
conflicts of interest.

Vuya! Investments

Vuya! is a broad-based, women-led empowerment group based in the Cape with a
country-wide investment focus on financial services, diversified industrial
businesses, healthcare, tourism and the leisure and food sectors. The company is
87% black-owned and has an excellent track record in empowerment transactions.
Vuya! also has an exceptional background in community development and job
creation through its largest shareholder, the Izandla Trust (45%). This is a
joint initiative between Nozala Trust and Cape Women's Forum established in
2001.

Chrims Investments

Chrims Investments has substantial expertise with the promotion of black
empowerment investments in partnership with previously disadvantaged groups.

Wise Capital has been the corporate advisor to this transaction.

Black empowerment

Black economic empowerment ("BEE") is a key objective of the South African
Government's plans to achieve socio-economic transformation. The DTI's Strategy
for Broad-Based BEE, the Broad- Based Black Economic Empowerment Act 2003 and
other associated legislation underpin its objective to build an economy
characterised by growth, employment and equity by 2014.

Codes of good practice and voluntary Charters for a few industries such as
Mining, Tourism and Financial Services, have also been established, with a
number of others currently in draft form. These facilitate the measurement of a
company's BEE compliance against a BEE scorecard when bidding for public
procurement contracts or applying to government for a licence, concession or
other similar authorisation. A common feature for future charters will be an
element in the BEE scorecard that rewards a company for its level of procurement
from and investment in other BEE compliant companies.

In the commercial sector, whilst BEE compliance is currently not an absolute
requirement, BEE is set to be an evaluation criteria in its own right, bearing a
high degree of significance.

As with all public procurement, bidders for pubic sector management consulting
contracts are required to demonstrate their BEE credentials. Given the broader
socio-economic transformation in South Africa, it is also likely that BEE
accreditation will become increasingly important when competing for consulting
contracts in the commercial sector.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCGCBDDBUBGGSX
Management Consulting (LSE:MMC)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Management Consulting Charts.
Management Consulting (LSE:MMC)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Management Consulting Charts.