admin
Deputy Lifestyle Editor
Fruits of the indigenisation and economic empowerment initiative are beginning to pay off for some of the workers who benefited from the establishment of Employee Share Ownership Trusts as some of the companies have started paying out dividends.
In some instances this has resulted in total transformation of the workers’ lifestyles with some acquiring properties, vehicles, household furniture and agricultural equipment.
Employee Share Ownership Trusts were established to give employees an opportunity to participate directly in the development and growth of the companies in a way that will generate individual as well as collective value.
British American Tobacco Zimbabwe introduced ESOT as part compliance of the indigenisation legislation by giving 10 percent of shareholding to employees. The company is effectively transferring more than two million shares to its employees. At the current share price of US$14,50, this equates to a total value of close to US$10 million, half of which will be issued as free shares to employees through the trust, while the other half are to be issued for value.
“Our Employee Share Ownership Trust will give BAT Zimbabwe employees part ownership in the company. We will also provide employees with the necessary assistance to be able to access those shares that will be issued for value, further enabling them to increase their holding in the company,” BAT Zimbabwe managing director Mr Lovemore Manatsa said.
Some employees at BAT Zimbabwe narrated how the initial disbursements from the company totalling nearly US$4 million changed their lifestyles as they received varying pay outs commensurate with their service to the company.
BAT International Holdings (UK) Limited is the external shareholder and owns 48 percent of the company that is listed on the Zimbabwe Stock Exchange. Other bigger shareholders are Old Mutual (14,8 percent), BAT Tobacco Empowerment Trust (10 percent) and BAT ESOT (10 percent).
One of the ESOT beneficiaries Mr Michael Munyaradzi (62), who has been with BAT Zimbabwe for nearly 40 years, did not make a secret of his joy and appreciation of the massive windfall that he received last year as a dividend and redemption of some shares. He could not, however, disclose how much he got.
“I drilled a borehole and installed a water tank at my rural home that I also renovated and electrified. I also bought a brand new John Deere 38 HP tractor and a Hino eight-tonne truck. For myself, I bought a Honda CRV car and I also managed to pay full school fees for my daughter at the University of Zimbabwe.”
Mr Munyaradzi who is nearing retirement as a machine operator at the BAT cigarette manufacturing plant in Harare, said he was most grateful to the Government for the empowerment programme as it was effectively transferring wealth to the workers. He hoped that other foreign-owned companies were also following the same programme to empower their workers.
“Before this, I never dreamed that I would own all these assets which are now generating money for me while I continue working here,” he said.
Mr Lovemore Wamwanduka, a welder who has been with British American Tobacco for the last 39 years said owning shares in the company was a life changing event that will remain a milestone etched in his life.
Besides buying two vehicles, Mr Wamwanduka went shopping for new furniture to transform his house in Kuwadzana and managed to pay a year’s school fees for his two children at university both locally and abroad and a high school student at Ngezi High School. He has also started building a herd of cattle at his rural home in Mhondoro.
Production technician Mr Morris Newengo (45) still has difficulty in believing that he has been transformed from an employee to a shareholder and this has seen him buy and furnish a house in Mufakose. He has also found new interest as an entrepreneur and is now leasing a night club in the same suburb.
“This is something that I could not have achieved without ESOT and for that I am grateful to both the Government and my employer for enabling me to reach this level. When we first heard about the empowerment transaction we were very doubtful that we would get anything out of it. But look at us now, vanosimudzira marombe kubva muhuruva.”
These developments at BAT Zimbabwe speak directly to the Government’s indigenisation and empowerment objectives of creating broad-based empowerment through direct ownership to those who would otherwise not have had this opportunity.
Other companies that have introduced employee share ownership trusts include Schweppes Zimbabwe, Zimplats, Old Mutual Zimbabwe, PPC, Zimpapers and Meikles Africa.
Online Reporter