Coca-Cola Beverages South Africa (CCBSA) has announced that it is increasing the stake held by employees and black empowerment investors in the company to 20%.
The updated agreement will see nearly 8,000 employees increase their current 5% stake in CCBSA to an approximate 15% shareholding, tripling the size of its employee share ownership scheme.
Together with the external BEE partners, the combined equity stake will be 20%.
Companies in South Africa are required to meet an integration programme called Black Economic Empowerment (BEE), which allows black employees and investors to hold equity in a company.
Coca-Cola’s South African bottler says it has also agreed to additional commitments which will positively impact employees, existing B-BBEE shareholders and South African localisation initiatives.
“We have also undertaken to collaborate with our sugar suppliers to increase the volume of sugarcane procured from Black farmers,” said Velaphi Ratshefola, managing director of CCBSA.
The company will be contributing ZAR 80 million (approximately $5.38 million) every year for three years towards localisation initiatives that form part of the nation’s effort to rebuild the economy.
CCBSA’s announcement was made together with the Department of Trade, Industry and Competition (the dtic) and the Competition Authorities.
The dtic Minister Ebrahim Patel said: “The commitment from CCBSA to increase the level of worker ownership in the company, deepen the level of transformation in the sugar value chain and support the broader localisation drive in the economy, are important steps in our efforts to create a more inclusive economy in South Africa.
“It’s an example of what companies can do, and we look forward to others following their lead, as we drive an enhanced model of broad-based transformation, through worker empowerment, in our country.”
Financial details of transaction were not disclosed.
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