South Africa to be almost R 14-billion wealthier when SAB Zenzele BB-BBEE scheme winds down in April 2020

SPONSORED

When the South African Breweries (SAB) Zenzele B-BEE scheme winds down in April 2020, the scheme will have generated almost R14-billion in value for South Africa. Created with the intention of redressing historical imbalances and generating sustainable ownership and economic wealth opportunities for previously disadvantaged groups, the B-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 R4-billion to shareholders, with an additional R9.6-billion to be paid out when it winds up.

For the almost 40 000 South African families that 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 20 people who are permanently employed by him in rural KwaZulu-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 fast-moving consumer goods (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; 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,” said 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 delivered 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 the advancements and lessons of the last 10 years,” concluded Rivett-Carnac.

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Advertising

Subscribers only

Poachers in prisons tell their stories

Interviews with offenders provide insight into the structure of illegal wildlife trade networks

Covid-overflow hospital in ruins as SIU investigates

A high-level probe has begun into hundreds of millions of rand spent by the Gauteng health department to refurbish a hospital that is now seven months behind schedule – and lying empty

More top stories

Covid-19 on the rise in Zimbabwe

The South African variant of the virus is ‘clinically present’, while a lockdown tries to limit new infections

Bitcoin rules take edge off crypto-nite

New regulations for cryptocurrency exchanges could boost investor confidence in such assets

An experiment in what school could be

Two Limpopo principals will be helping to create radically reimagined communities of learning: schools as living systems

The inefficiency of the Gini coefficient

To simplify complex inequality into a single statistic doesn’t address how to accurately assess (or reduce) South Africa’s large wealth divide
Advertising

press releases

Loading latest Press Releases…