A typical Broad-Based-Black-Economic-Empowerment (BBBEE) deal promises beneficiaries high value on investment after maturity. But experience indicates that not every scheme has a happy ending. Stories of people wishing they did something better with their money are just one too many.
Hence, bucking the trend, SAP South Africa has decided to issue 19.5% of its shares to a BBBEE Trust with the aim of distributing dividends to beneficiaries who will use the funds to cover education costs at accredited institutions. According to the organisation, ultimately, the initiative will provide a foundation for young people to meet the increasingly complex and competitive future through quality education well-prepared.
A statement from SAP South Africa says: “By using these dividends for education purposes, the beneficiaries of The SAP South Africa Empowerment Trust will obtain long term sustainable economic self-sufficiency.”
In effect, the deal means that SAPS South Africa has met the 30% ownership stipulated under BBBEE Codes applicable to all South African IT companies. 10.5% of its shares are under broad-based black IT organisation, BLITEC.
