South Africa to be almost R 14 billion wealthier when SAB Zenzele BB-BBEE scheme winds down in April
ENGINEERING NEWS / 12 FEBRUARY 2020 - 14.32 / CREAMER MEDIA REPORTER
Biggest BB-BEE FMCG payout in South Africa’s history, with new scheme to be launched
When the South African Breweries (SAB) Zenzele BB-BEE scheme winds down in April 2020, the scheme will have generated almost R 14 billion in value for South Africa. Created with the intention of generating sustainable ownership and economic wealth opportunities for previously disadvantaged groups and redressing historical imbalances, the BB-BEE deal transferred 8.45% of ownership of SAB shares to more than 40,000 shareholders. Since its inception in 2010, SAB Zenzele, has disbursed R 4-billion to shareholders, with an additional R 9,6-billion to be paid out when it winds up.
For the almost 40 000 South African families, who have benefitted from Zenzele, due to its vast capacity and broad reach tangible value has been created. Maniki Lawrence Dunge, 72, owner of Dunge Liquor Store and Dunge Bar, is an example. His businesses directly impacts twenty people who are permanently employed by him in rural Kwa-Zulu Natal.
Continuing this legacy, when SAB Zenzele winds down, the SAB Zenzele Kabili Scheme will be launched. Shareholders of the SAB Zenzele scheme will have multiple options, one of which is to reinvest a portion of their unwind value in the new SAB Zenzele Kabili scheme. Alternative options include to receive proceeds in the form of AB InBev shares or to receive their proceeds in cash.
SAB Zenzele is the most prolific scheme in the FMCG sector and one of the country’s most successful empowerment schemes, creating tangible wealth for its three groups of shareholders. Beneficiaries of the scheme are the SAB Zenzele Employee Trust, which holds shares for the benefit of SAB employees; the SAB Zenzele Holdings Limited, which holds shares for the benefit of qualifying beer and soft drink retailers; and the SAB Foundation Trust, which supports entrepreneurship projects to benefit low-income communities.
“Looking back at SAB Zenzele’s 10-year track record, it is inspiring to see what has been achieved and the economic growth that it has contributed to the country”, says Richard Rivett-Carnac, Director M&A and Treasury, SAB and AB InBev Africa.
“From the outset, SAB Zenzele sought to be genuinely broad-based and to deliver real economic benefits to the lives of thousands of South Africans. I am very proud of the degree to which SAB Zenzele delivers against this initial objective” he added.
SAB Zenzele will run in its current form until the end of March 2020. With empowerment as a key driver and one of the core beliefs of the business, SAB will formally launch its new empowerment scheme, SAB Zenzele Kabili, in April 2020.
“We are looking forward to carrying SAB Zenzele's legacy forward and continuing our empowerment story into the next decade with the launch of SAB Zenzele Kabili. The new empowerment scheme will be built on the strengths of SAB Zenzele, incorporating advancements and learnings of the last 10 years,” concludes Rivett-Carnac.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER