ISSUE 1 - AUGUST 2005

A M B

N e w s l e t t e r

amb capital limited

Registration No 1995/003054/06 Authorised Financial Services Provider

Izindaba
Welcome from Peter Vundla
On 13 May 2005, AMB celebrated its first decade of business. This was an auspicious event for a company that was among the pioneers of black economic empowerment in both its own makeup and in the transactions it structured for clients. In ten years, AMB has rapidly become an authority in the financial services field, particularly economic empowerment. This is reflected in the number of transactions concluded and the calibre of its client base. Today, AMB is a mature organisation, characterised by innovation and passion and the strength and stability of its intellectual capital, a singular achievement in an industry known more for its mobility. We welcome feedback on our newsletter, which will be published periodically and is intended to examine a broad range of issues affecting our industry, from codes of practice and charters, deal analysis and legislative reviews to international corporate activity. We trust you will find it informative e-mail your comments to mailbag@amb.co.za. Just as AMB literally wrote the book on empowerment funding and structuring, we intend to continue contributing to the development of an industry that plays such a crucial role in our nations transformation. Peter Vundla

In this issue...

Welcome from Peter Vundla Snapshot of AMB over the past 10 years Our new empowerment partners Telecommunications opportunities abound Empowerment transaction between Lereko and Imperial Clarity needed on empowerment scorecard credits AMB to establish hedge fund AMBs 10th anniversary AMB in the community -fighting fire with care

www.amb.co.za

AMB

Snapshot of AMB over the past 10 years

This year marks the anniversary of one of South Africas most defining moments. Fifty years ago, on 26 June 1955 in Kliptown Johannesburg, the Freedom Charter was proclaimed by the Congress of People and the then head of the ANC, Chief Albert Luthuli. This important anniversary is straddled by the 11th anniversary of South Africas first democracy and the ninth anniversary of the National Constitution. A smaller celebration, but one that is equally as important in our lives is the tenth anniversary of AMB. Established on 13 May 1995, it was founded on a vision of empowering change so that economic transformation in South Africa could mirror the political aspirations of the new government and the ideals of the Freedom Charter. At AMB, in our own small way, we embrace the spirit of the Freedom Charter and our National Constitution, where it states South Africa belongs to all who live in it, black and white, united in diversity. To achieve this, we have attempted to conduct ourselves and our business in such a way to develop and harness the potential of the diverse group of stakeholders we look to serve. With this in mind and as we celebrate our tenth anniversary, we acknowledge the milestones we have passed on our way to becoming a leaner, more focused and experienced team that takes pride in the innovative services we offer and which derives as much enjoyment and fulfilment from our own success as we do from that of our partners. As a specialised empowerment financial services company, we seek to create a diverse range of alliances

and partnerships to pursue opportunities for mutual benefit. It is through this partnership ethos that we believe we can exploit growth and facilitate access to the mainstream economy by all South Africans. AMB was started in 1995 with three people, lofty ambitions and just R7 million in capital. The companys aim to become the preferred advisor to the emerging black business class was visionary, at a time when empowerment was little understood and not yet in vogue. Despite this, AMB maintained its focus and has developed a brand that is synonymous with empowerment in South Africa. Since then, others have followed, acknowledging the success of our early efforts and recognising the benefits to be gained from the momentum that has now underpinned economic transformation through the various charters and government frameworks. Over the years, we have been integrally involved in the formation of a number of empowerment groups from NAIL and Real Africa through to womens groupings, such as Nozala, and regional groups, such as Siphumelele. We have advised on landmark transactions, such as SBCs acquisition of MTN back in 1996, the NECs acquisition of Johnnic in 1997, the IPO of Telkom in 2002 and more recently empowerment transactions in groups such as Alcatel, Coca-Cola, Nampak, Didata and Imperial. Earlier this year in March 2005, we were especially pleased to announce the introduction of our new empowerment shareholders, Krem and Ayishone, headed by Kennedy Memani and Eugene Ruiters, who will be our strategic partners in AMB going forward. We are excited about cementing what has been a long-standing

relationship with Kennedy and Eugene, and look forward to meeting the challenges and capitalising on the opportunities that we will face over the next 10 years. Finally, despite all the achievements mentioned above, probably the most significant contribution AMB has made to the economy and to transformation has been the number, diversity and quality of people that have passed through our organisation over the past 10 years. It is always sad to see good people leave. However, we have been fortunate enough to see many of these individuals achieve great heights at their new employers. Many of our people have rapidly ascended to become leaders at their respective organisations, whether it be at regulatory and government bodies, state enterprises, private sector corporates or the establishment of new empowerment groups. We at AMB are proud to be South African, to be part of a company born in the new South Africa and of our contributions and achievements over our first 10 years. We, together with our new empowerment partners, look forward to the next 10 years and the rewards and challenges that our commitment to empowering change will bring to ourselves and our diverse group of stakeholders. Andrew Sprague, CEO of AMB

Our new
Continuing the momentum of black economic empowerment (BEE) deals in the financial services sector, AMB has finalised the first stage of its empowerment process with the introduction of strategic BEE partners into its shareholding. In terms of the transaction, 25% of the equity in AMB will be acquired by Krem Investment Holdings (KREM) and Ayishone Investments (Ayishone). Following this transaction and the March appointment of Kennedy Memani to the board, AMB will have BEE shareholding (including shares held by management and staff) of over 40% and empowerment representation on its board of 50%. Krem is an established black-controlled company which has been involved in a number of successful advisory mandates and investments. It is led by Kennedy Memani and Eugene Ruiters, both chartered accountants with considerable experience in public sector restructuring, privatisations, mergers and acquisitions and private equity investment. Memani is chairman of both the Eskom Pension Fund and Nexus Connexion and a director of various companies in which Krem is invested. Krem was a founder of Nexus, the empowerment partner in the second telecommunications fixed network operator. In addition to the shareholding transaction, AMB and Krem have established a joint venture, Umthombo Capital Ventures, that will target selected merchant banking opportunities in the public and private sectors. This strategy is in line with our philosophy of creating value-adding operational partnerships with empowerment partners where we can add strategic value to the growth of these groups. Commenting on the deal Memani said, I am excited to be involved with AMB as I believe it has been the pre-eminent empowerment financial services company over the past ten years and a pioneer and catalyst for empowerment in South Africa. I also believe the formation of the joint venture will allow us to become more

Kennedy Memani

empowerment partners
operationally involved with AMB and benefit from its infrastructure and capacity in pursuing opportunities. Ayishone is a newly-established company wholly owned by the Ayishone Trust, a trust set up for the benefit of previously disadvantaged individuals and business associates who can add value to AMB. The directors of Ayishone and the trustees Since delisting from the JSE, AMB has been through a rigorous restructuring exercise which has resulted in a more appropriate capitalisation, operational and staffing structures to compete in the South African investment banking arena. We have focused on our niche areas of excellence where we can provide a competitive and sustainable offering. The restructured AMB is focused on the following business activities: Corporate finance, with a focus on BEE and private and public sector advisory mandates. Recent transactions concluded by our corporate finance team include the introduction of empowerment partners into the South African operations of Dimension Data Holdings plc, Imperial Holdings Limited, The Coca-Cola Company and Alcatel South Africa (Pty) Ltd. Private equity, where we currently manage a private equity fund with an investment portfolio of R400 million. We have been involved in private equity since 1996, raising funds of R800 million, concluding 21 investments and fully realising 11 investments at an above-market average rate of return. Notable transactions in 2004 included the disposal of Stuttafords Stores to its management team. Proprietary trading, using our local and international capital base to trade in local and international financial instruments based on relative arbitrage strategies to ensure we earn suitable risk-adjusted returns. Industry charters, innovative financing structures and the buoyancy of the South African economy have increased the number, quality and sustainability of empowerment deals being concluded and we believe this trend will continue. Our approach of supporting new empowerment groupings that share the same vision and value system as AMB, and partnering them in developing their businesses and strategies, positions us well to grow with our partners and capitalise on opportunities in growth areas such as traditional, alternative and property asset management.

of the Ayishone Trust are BEE luminaries and AMB executive directors Bunguza Peter Vundla and Zenzo Lusengo. The introduction of Krem and Ayishone as shareholders in AMB is the first phase of our BEE process and the next phase, to be concluded in the next 12 months, will increase our empowerment shareholding. To achieve this, there will be close cooperation between AMB management, the new empowerment partners and Investec, which facilitated AMBs empowerment transaction.

EMPOWERING CHANGE

AMB

TELECOMMUNICATIONS
Telecommunications is arguably the most dynamic industry in the world. New technologies like mobile telephony, low-cost satellite services and highcapacity wireless trunk links have seen the total number of telephone subscribers worldwide grow dramatically since 1990. In the four years to 2004, mobile penetration increased to almost 9% from under 2% on the African continent. Given the limited roll out of fixed-line infrastructure, mobile technologies have leapfrogged traditional fixed-line offerings and, today, there are more than twice as many mobile users compared to approximately 22 million fixed lines on the continent, according to figures from ITU Telecom 2004. Yet, penetration rates for mobile telephony are still relatively low in Africa, particularly in sub-Saharan Africa, where penetration was below 5% at the end of 2004. South Africa has by far the highest penetration rate in Africa at 36%. The African region is fast evolving as one of the industrys key investment prospects, given rapidly increasing levels of mobile penetration, and rising levels of demand for complementary telecommunication technologies and internet access. Understanding the role an efficient telecoms platform can play in economic development, most governments in Africa fully support the sectors development. Continued market liberalisation is reshaping the regulatory environment, creating an attractive investment climate which is stimulating the interest of international players, and raising the level of competition for the regions new licence opportunities, mergers and acquisitions. In South Africa, as part of the liberalisation process, the introduction of a second telecoms network operator is expected to end the Telkom monopoly. The local telecoms market has undergone rapid change in the past decade since the introduction of mobile telephony in 1994 from fixed-line, telegrams and telex services to mobile voice and data applications where internet service providers use various platforms to drive communications. Deregulation in the telecommunication industry remains mired in controversy. The second fixed-line operator licence has not yet been awarded, prolonging Telkoms monopoly of SA fixed-line operations. Three cellphone operators have been licensed, resulting in a plethora of service providers. Foreign competition in international fixed-line services is increasing. The advent of competition has forced Telkom, long the driver of only fixed-line services, to expand its product offering and re-examine its cost structures. A telecommunications monopoly is negative for the South African economy because the lack of competition forces internet service providers to buy their backbone from Telkom and hampers their ability to deliver more effective communication to customers, compete on price and operate according to free market principles. The much-delayed implementation of the Celtel is a good example of the potential of the telecommunications sector. The company has licences in 15 African countries, mostly mobile and some 3 million proportionally-managed mobile subscribers spread across sub-Saharan Africa. AMB was an early-stage investor in Celtel in 2001, attracted by the combination of the enormous potential of mobile telephony in the region and the track record and operational expertise of Celtel management led by Dr Mohammed Ibrahim. When the Kuwaiti company, MTC, offered to acquire Celtel in May 2005, AMB exited its investment, realising an internal rate of return of over 30% and money back of 3,7 times the original US$-based investment. In the early years of the 21st century, many foreign telecommunications companies were leaving Africa. That situation has now reversed and activity levels are high on the continent, with the issue of new licences, privatisations, acquisitions and listings changing the second network operator makes a mockery of the liberalisation process and denies service providers the right to self-provision. We believe South Africa urgently needs a second network operator to introduce competition at an infrastructural level and drive local telecommunications into the 21st century. With a decade of experience, AMB has built strong relationships in the telecommunications sector, having advised on or invested directly in transactions worth in excess of R4 billion involving Telkom, MTN and Celtel.

TELECOMMUNICATIONS
Telecommunications is arguably the most dynamic industry in the world. New technologies like mobile telephony, low-cost satellite services and highcapacity wireless trunk links have seen the total number of telephone subscribers worldwide grow dramatically since 1990. In the four years to 2004, mobile penetration increased to almost 9% from under 2% on the African continent. Given the limited roll out of fixed-line infrastructure, mobile technologies have leapfrogged traditional fixed-line offerings and, today, there are more than twice as many mobile users compared to approximately 22 million fixed lines on the continent, according to figures from ITU Telecom 2004. Yet, penetration rates for mobile telephony are still relatively low in Africa, particularly in sub-Saharan Africa, where penetration was below 5% at the end of 2004. South Africa has by far the highest penetration rate in Africa at 36%. The African region is fast evolving as one of the industrys key investment prospects, given rapidly increasing levels of mobile penetration, and rising levels of demand for complementary telecommunication technologies and internet access. Understanding the role an efficient telecoms platform can play in economic development, most governments in Africa fully support the sectors development. Continued market liberalisation is reshaping the regulatory environment, creating an attractive investment climate which is stimulating the interest of international players, and raising the level of competition for the regions new licence opportunities, mergers and acquisitions. In South Africa, as part of the liberalisation process, the introduction of a second telecoms network operator is expected to end the Telkom monopoly. The local telecoms market has undergone rapid change in the past decade since the introduction of mobile telephony in 1994 from fixed-line, telegrams and telex services to mobile voice and data applications where internet service providers use various platforms to drive communications. Deregulation in the telecommunication industry remains mired in controversy. The second fixed-line operator licence has not yet been awarded, prolonging Telkoms monopoly of SA fixed-line operations. Three cellphone operators have been licensed, resulting in a plethora of service providers. Foreign competition in international fixed-line services is increasing. The advent of competition has forced Telkom, long the driver of only fixed-line services, to expand its product offering and re-examine its cost structures. A telecommunications monopoly is negative for the South African economy because the lack of competition forces internet service providers to buy their backbone from Telkom and hampers their ability to deliver more effective communication to customers, compete on price and operate according to free market principles. The much-delayed implementation of the Celtel is a good example of the potential of the telecommunications sector. The company has licences in 15 African countries, mostly mobile and some 3 million proportionally-managed mobile subscribers spread across sub-Saharan Africa. AMB was an early-stage investor in Celtel in 2001, attracted by the combination of the enormous potential of mobile telephony in the region and the track record and operational expertise of Celtel management led by Dr Mohammed Ibrahim. When the Kuwaiti company, MTC, offered to acquire Celtel in May 2005, AMB exited its investment, realising an internal rate of return of over 30% and money back of 3,7 times the original US$-based investment. In the early years of the 21st century, many foreign telecommunications companies were leaving Africa. That situation has now reversed and activity levels are high on the continent, with the issue of new licences, privatisations, acquisitions and listings changing the second network operator makes a mockery of the liberalisation process and denies service providers the right to self-provision. We believe South Africa urgently needs a second network operator to introduce competition at an infrastructural level and drive local telecommunications into the 21st century. With a decade of experience, AMB has built strong relationships in the telecommunications sector, having advised on or invested directly in transactions worth in excess of R4 billion involving Telkom, MTN and Celtel.

opportunities abound
landscape of the sector in Africa. In mobile alone, there are more than 12 African operators active in 43 African countries. Recent transactions in Africa, both fixed and mobile, have increased the importance of telecommunications to potential investors. In addition to new licences, consolidation is expected to accelerate rapidly, with fixed line, privatisation and market liberalisation being expected to underpin growth. Attracting the required foreign investment, however, will depend on clear regulatory frameworks and stable economic and political environments. Given its track record in the telecommunications sector and the above-average returns achieved, AMB is well positioned to advise on structuring future transactions that ensure farreaching transformation and equitable participation in the sectors potential. As with all our proposed transactions, we

Zenzo Lusengo

believe the challenge is to find ways to assist empowerment groups in funding their equity stakes to improve their level of economic participation in a transaction. To achieve this objective, AMB will continue developing sustainable and realistic funding models that literally give a voice to thousands. For more information, contact: Zenzo Lusengo or Jamie Hollins on (011) 215-2000.

Corporate Advisory

Investment

US$90 MILLION INTRODUCTION OF SBC INTO MTN

R566 MILLION FUNDING FOR EMPOWERMENT GROUPS

EMPOWERMENT SPV FUNDING

EMPOWERMENT SPV FUNDING

UNWINDING OF EMPOWERMENT SPVS

ADVISOR TO TELKOM IN IPO

EQUITY INVESTMENT

Leading advisors and investors in telecommunications

amb capital limited

www.amb.co.za

AMB

Empowerment transaction between Lereko and Imperial

AMB was particularly proud to be involved in what is a signature transaction for Lereko and its largest to date. AMBs involvement with Lereko originates with the establishment of the company in May 2004, when Valli Moosa and Popo Molefe left government. AMB advised them on setting up their investment vehicle and provided infrastructure and human resources support. Lerekos positioning as a 100% blackheld entity enhanced its attractiveness to Imperial. Some of the challenges in finalising this transaction included raising the required capital, section 38 of the Companies Act and reaching a balance between the needs of Lereko as the empowerment partner and Imperials shareholders who were making the equity available. Over R800 million of thirdparty capital was required for the transaction as well as R600 million of notional junior finance provided by Imperial. An innovative mechanism, which did not contravene section 38 of the Companies Act, was designed to allow Imperial to contribute its funding. We believe the transaction will benefit both Imperial and Lereko and mark another step in the process of transformation under way in our country.

Jamie Hollins

AMB was proud to be involved in one of the largest empowerment transactions concluded in the mobility industry. The transaction is valued at approximately R1,4 billion. AMBs role in the transaction was that of financial advisor to the broad-based Lereko consortium. The Lereko Consortium is a vehicle specifically created for this transaction and its shareholders are Lereko Investments (62%), Malibongwe Women Development (15%), Zonkizizwe Investments (10%), black womens groups (8%) and Imperial and Ukhamba Community Trust (5%). Lereko is the empowerment vehicle of Valli Moosa, Popo Molefe and Lulu Gwagwa.

EMPOWERING CHANGE

AMB

Clarity needed on empowerment scorecard credits

Zenzo Lusengo

Total funds under management of participating fund managers that themselves are black-owned or empowered companies increased 147% from R3.4 billion at the end of 2003 to R8.4 billion at the end of 2004. According to the KPMG/Savca Venture Capital and Private Equity Industry Performance Survey 2004: Although this only presents 23% of total qualifying funds under management it does represent a significant increase from the 10% at the end of 2003. Zenzo Lusengo, executive director of AMB, says this increase is largely due to private equity funds such as Brait and Ethos themselves completing black economic empowerment deals. Thats phase one of transformation of the industry, but in time we would like to see an increase in the number of black professionals, he says. In fact, the survey reflects no increase in the number of black professionals during 2004. The major BEE issue facing independent private equity funds at the moment is whether investors would get scorecard credits when investing capital with a blackempowered fund. Its highly topical, says Lusengo, because many of the independent funds are currently in a realisation mode tidying up their last funds through disposing of investments, and have entered a new fund-raising stage for their next fund. So the question is being asked of them regularly. Whenever we approach private sector funders like pension funds and insurance companies, they want to know if they will be scoring points in terms of the financial transformation charter scorecard. They are coming under

tremendous pressure to shift their procurement to blackowned business and to do more in terms of empowerment financing,he says. Unfortunately, while these institutions are interested in investing in the assets class, we cannot give them a clear answer because we are awaiting clarity from the financial services charter council on this issue. A solution suggested by Lusengo would be for the private equity industry to have its own scorecard under the auspices of the financial services charter. This would enable us to address questions such as: the ownership and control of fund managers; the ownership and control of the general partners; the demographic profile of a fund managers professionals and investment committee; the funds investment focus and the economic benefit of procurement flows. The key issue in whether an investment should attract scorecard credits for empowerment financing and procurement is the ownership and control of key decision-making bodies. With the proposed private equity scorecard, if a fund manager achieved a rating of, say 70%, and a life assurer invests R100 million with it, that investor should get credits for R70 million as empowerment finance.

In addition, if the institution invests with the private equity fund manager, and on an annual basis they pay it a management fee, they can also get credits for the procurement of services from a black supplier, says Lusengo. But for now, the issue is up in the air, and it is creating a bottleneck in investment flows which could be used for empowerment financing. When theres no clarity, everyone tends to hang back. Yet for independents, now is the time to strike theres investor interest and opportunities to make investments in the current market conditions, so we need an answer adds Lusengo.
Eamonn Ryan - KPMG/SAVCA Survey. 28 April 2005.

AMB to establish hedge fund

In recent years, the hedge fund market has expanded exponentially. While public perception tends to lump all hedge funds into the same broad category, there are in fact 18 different single strategies and more than 8 000 single strategy managers in the hedge fund universe. Globally, there are over 1 500 funds of hedge funds. In South Africa alone, the hedge fund industry is estimated to be worth some R8 billion. Statistics show that hedge funds have outperformed bonds and equities over the past 15 years with considerably less risk than taken by the other asset classes. Investing in a sound hedge fund as an alternative investment class can enhance the returns of a portfolio and lower the overall risk. AMBs market neutral equity trading activities produced an annual return of 25.5% from 2000 to 2005 compared to an annual return of 8.5% produced by the ALSI over the same period. AMB has managed a market-neutral hedge fund on its own balance sheet, focusing mainly on pairs trading across a broad range of industries. The returns of the AMB hedge fund are set out in the table below. Backed by this solid track record, AMB intends to raise third-party funds to increase its hedge fund to around R100 million initially. In accordance with FAIS, this will be raised primarily through multi-managers managing private portfolios.

Duke Erlank

The South African hedge fund industry is in discussions with the Financial Services Board to establish appropriate regulatory oversight structures. This could be finalised in the current calendar year and will, we believe, give considerable momentum to the hedge fund industry. Contact Duke Erlank or Chris Vosloo on (011) 215-2000 for more information. Disclaimer: This article is for interest purposes only and is not intended to constitute a solicitation for funds. The hedge fund is not a regulated activity in terms of the Financial Services Board.

Historical Performance:
Annualised return Return (12 months to 30 June 05) 6 Month return 3 Month return No. of positive months 27.77% 27.77% 8.11% 7.24% 11/12 (92%) Max monthly drawdown Historical Std. Dev. Annualised Std. Dev. Sharpe Ratio Sortino Ratio - 1.67% 2.19% 7.60% 2.70 12.50

Monthly Returns:
July 04 August 04 September 04 October 04 November 04 December 04 3.19% 1.85% 1.66% 2.96% 8.00% 2.01% January 05 February 05 March 05 April 05 May 05 June 05 - 1.67% 0.74% 1.80% 2.26% 2.44% 2.53%

The above statistics were prepared by AMB

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AMB

AMBs 10th Anniversary

Marking 10 years
On Thursday, 7 July 2005 we held a function to celebrate our 10th Anniversary. Amongst the attendees were various dignitaries, clients, directors, staff and alumni. We were delighted to have deputy minister of finance, the honourable Jabu Moleketi, as our key note speaker and guest of honour. At AMB, we have since our inception in 1995 and in our own small way embraced visionary ideals wherever possible. We were born in the new South Africa as an organisation committed to empowering change and facilitating the participation

of all people in the mainstream economy, particularly the previously disadvantaged. We believe that only through the respect and unity of our diversity can we stimulate growth and employment to restore human dignity to all the people of South Africa. In our short 10 years, we have been pioneers in empowerment transactions at a time when empowerment was not in vogue. We have tried to empower our diverse group of stakeholders from clients to shareholders to employees to suppliers. We have done this through our advice, our investments, the groups we have supported, the people we have trained, the bursaries and scholarships we have

sponsored and the social responsibility programmes we have supported. Since then, others have followed, acknowledging the success of our early efforts and recognising the benefits to be gained from the momentum that now underpins transformation through the various charters and government frameworks. Our first ten years have been characterised by peaks and troughs. We have emerged stronger and firmly focused on our course of being a major factor in the South African economy, especially black economic empowerment. Watch us closely over the next ten years.

Commemorating AMBs first decade, a new corporate video tells the tale of a fledgling company that has weathered the storms of market meltdowns, sectoral implosions and seismic economic transformation. The strength of the groups foundation in empowerment has enabled it to withstand this onslaught and emerge as one of the leading brands in

empowerment transactions, focused on long-term capital appreciation through partnerships with empowerment groups that share AMBs ethos and values. Well capitalised at R250 million, todays AMB is focused on corporate finance, private equity and proprietary trading, with several promising initiatives emerging from the AMB incubator, particularly property and

hedge funds. AMB is well positioned in the South African economy, aligned with the objectives of government and ready to play its role in achieving those objectives. For a copy of the video on CD or DVD, contact Gillian Dodds on (011) 215-2023.

EMPOWERING CHANGE

AMB

AMB in the community

- fighting fire with care

Every year, thousands of people lose their homes and belongings to fire. Every year, hundreds of children are injured, orphaned or abandoned because of fire. Most of these fires happen in the poorest communities, most of them happen in informal settlements. One woman is making a difference in these lives, single-handedly at first and now with a cadre of volunteers and caregivers. That woman is Bronwen Jones. AMB has supported Bronwen Jones and The Children of Fire Trust for over seven years. The trust was established to help severely-burned children in poor communities receive the required medical treatment. Its activities have since spread to fire fighting, fire prevention, first aid and the installation of water tanks, primarily in informal settlements where the risk of fire is high. By paying her a salary, AMB has freed Bronwen to attempt to repair shattered lives and to take her fight against fire to the highest levels in parliament. She is on call around the clock. The children she cares for become part of her family at her home in Auckland Park, in theory a temporary arrangement. But Bongani spent more time with her in 2003 and 2004 than in his own home. Sizwe came, she thought, for a few days, but has now been with them for over a year. Like many of the children, he had no surviving relatives interested in his care and had been dumped in an inappropriate institution. For the children of fire, if surgery or any other intervention is to succeed, they have to stay in a clean and safe environment around informed adults and close to hospitals, doctors and therapists. But all this happens in a family home not some large institution. And Bronwen has to feed, cook for, wash and dress these children. Some have no hands or only one hand, some cannot see, some are traumatised, rebellious, destructive, some are just babies with nappies to be changed. Through helping the children and squatter camp residents, a great deal of knowledge has been gained that spans professions from town planning and hazardous materials to fire prevention, fire fighting, first aid, burns surgery, reconstructive and plastic surgery, rehabilitation and psychology. Bronwen also started the Johannesburg School for Blind, Low Vision and Multiple Disability Children in January 2003. It is growing slowly but now offers help to primary school-age children with disabilities. No one is turned away, regardless of income or level of disability. Even some high school pupils were helped who had nowhere else to go. Every Sunday of the year, Bronwen runs a reading scheme in a squatter camp that now has offshoots in Zevenfontein and in Alexandra. The school has two paid teachers and a paid assistant, as well as other volunteer teachers and assistants, some of whom receive subsistence and travel costs. Bronwen oversees lesson plans for the school, administers all the volunteers and the paid staff and organises for all the children to get to surgery and safely home again often to the most rural homes. For all the children touched by her trust, Bronwen Jones is mother, doctor, cleaner, teacher, legal advisor, campaigner, psychologist, occupational therapist, speech therapist, emergency services worker, policewoman, journalist, environmental health inspector and engineer. Join us in supporting this Herculean effort. For more information, contact Gillian Dodds at AMB or Bronwen Jones at The Children of Fire Trust, (011) 726-6529, www.firechildren.org Donations can be made to: Children of Fire Account number: 614 920 23919 First National Bank Melville, Gauteng, RSA SORT 25-65-05

18 Fricker Road, Illovo, Sandton, South Africa Tel: (+2711) 215-2000 Fax: (+2711) 268-6888

PO Box 786833, Sandton, 2146, South Africa

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