Speeding Up Growth: SAB’s BEE vehicle steps up transformation

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Photo: SAB Foundation – Abalimi Harvest of Hope: one of the seed grant winners for the Innovation Awards 2011

Speeding up growth and transforming the economy to ensure income security for the people is the number one strategic priority of the new South Africa. The main objective, which the people have mandated the government to pursue to this end, for it to put measures in place to respond appropriately, promptly and effectively so that growth in decent employment and improvements in income security and reinforced and investment sustained.

The private sector has a massive role to play in partnering with the government to create the correct or rather the enabling conditions for such. South African Breweries (Pty) Ltd. is one of the private sector’s leaders in taking up the cudgels and ensuring that such economic transformation is not just a case of ‘lip service’, but ordinary lives are changed and sustainable livelihoods are guaranteed, particularly in the historically disadvantaged sectors of the community.

SAB’s Broad-Based Black Economic Empowerment transaction, SAB Zenzele, continues to deliver real, tangible benefits for shareholders, continuing to pay cash dividends, which has been achieved from the first year.

Since the implementation of SAB Zenzele in 2010, SAB has paid a total of R256-million over in dividends to SAB Foundation, SAB Zenzele Employee Trust and SAB Zenzele Holdings Limited.

Dr Penuell Maduna, the chairman of SAB Zenzele Holdings Ltd, which holds B-BBEE shares in SAB injected some more optimism to an already upbeat atmosphere by pointing out to Transform SA that besides the cash dividends doled out already, at the end of the 10 year transaction period, their SAB Zenzele shares will be transferred, not into shares in SAB Pty Ltd, but SABMiller plc.

“In other words, they will be shareholders in a global company, the second largest beer brewer in the world. That’s true empowerment,” Dr Maduna says.

SAB Zenzele, was specifically designed to be broad-based and innovative. “It sought to ensure from the beginning that the beneficiaries were ordinary men and women, previously disadvantaged SAB staff members, tavern owners and members of the broader society, through the SAB Foundation.

Beyond mere compliance with existing laws and policies, BEE is an imperative of South African business. It is in the self-interest of business to ensure that gradually the colouration and gender component of business changes in this country,” Dr Maduna says.

Transform SA was also given access to a statement from SAB giving details of the distribution of interim dividend (April-September 2012) of R46-million declared for Zenzele empowerment deal.

“SAB’s broad-based black economic empowerment transaction, SAB Zenzele, continues to deliver real, tangible benefits for shareholders, continuing to pay cash dividends, which has been achieved from the first year.

Based on SAB’s performance in the review period April to September 2012, the SAB Board has declared an interim dividend of R46-million, up from R43-million for the same period last year in respect of the shares held by the SAB Foundation, SAB Zenzele Employee Trust and SAB Zenzele Holdings Limited,” it is reflected in the statement.

Moreover, The SAB Foundation, which supports community based projects, received an interim dividend totaling R7.8-million, bringing to R45.4-million the total in dividends which have been paid to the SAB Foundation since inception.

“SAB Zenzele Holdings Ltd, which holds shares for the benefit of retailers, received an interim dividend of R21-million. A cumulative R111-million in dividends has now been paid to SAB Zenzele Holdings since the launch of the transaction.

Employee beneficiaries of the SAB Zenzele Employee Trust received an interim dividend totalling R17.2-million, with a total of R100-million in dividends having now been paid out to the SAB Zenzele Employee Trust since the deal began.

Since the implementation of SAB Zenzele in 2010, SAB has paid a total of R256-million over in dividends to SAB Foundation, SAB Zenzele Employee Trust and SAB Zenzele Holdings Limited,” it was reflected.

President Jacob Zuma has over the years demonstrated a strong commitment to such transformation and made an undertaking that government would implement Broad-Based Black Economic Empowerment and affirmative action policies in recognition of the need to correct the imbalances of the past.

To back that up with action he recently appointed members of the BBBEE Council, in terms of the Broad-Based Black Economic Empowerment Council Act no 53 of 2003.

Written by: Musa Ndlangamandla – Transform SA Ad Sales/Editorial Executive

Musa is a senior journalist from Swaziland and until January 2012 he was Chief Editor of The Swazi Observer Group of Newspapers. He is a former advisor and speech writer to King Mswati III. Musa studied Law and holds a number of certificates from leading schools of Journalism. He has travelled to over 35 countries on assignment. He also writes as a freelancer for various leading publications.

 

 

 

 

 

 

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