adminUnder the country’s indigenisation regulations, foreign-owned manufacturing companies were given up to 28 October to have placed 26 percent of their shares in locals.
They are required to increase the shareholding in the second year to 36 percent , in the third year, 46 percent should be localised while in the fourth year, 51 percent should be held by indigenous Zimbabweans by 28 October 2015.
In a statement, BAT Zimbabwe said its shareholders approved the company’s indigenisation proposals which seek to give majority ownership of the company to locals over the next four years.
The company said at an Extraordinary General Meeting on Friday, shareholders unanimously agreed to the indigenisation plan which was submitted to government.
Under the BAT indigenisation plan, 26 percent of shareholding would be in the hands of indigenous people as of yesterday, 28 October.
Of that shareholding, 10,74 percent will be by a Corporate Social Investment Trust which will focus on the development and support of indigenous tobacco growers, 10 percent will be held by an Employee Share Trust and the remaining 5,26 percent by existing indigenous shareholders.
BAT Zimbabwe managing director Mr Lovemore Matanda said the approval of the indigenisation plan demonstrated shareholders’ strong support for the indigenisation process.
“This is evidence of shareholder confidence that the business will continue to generate shared value. We endeavour to continue to run the business in a responsible and profitable manner, and it is important to understand that our context is based on the sustainability of our business and for all investors and stakeholders, including the people and country within which we operate,” he said.
Mr Matanda said BAT Zimbabwe employed more than 170 people and had a supply chain made up of a number of indigenous suppliers, and a distribution footprint encompassing thousands of formal and informal retailers and traders, all of whom were directly or indirectly dependent to some extent, on the contribution to their income from the sale of BAT Zimbabwe products.
“Empowerment is embedded within the way we operate at BAT Zimbabwe, and we have in place a number of initiatives aimed at benefiting indigenous Zimbabweans as our empowerment journey continues,” said Mr Matanda.
Online Reporter