The logo of South Africa’s Absa bank is seen outside an Absa branch in Cape Town, South Africa, March 10, 2020. REUTERS/Mike Hutchings/File Photo
JOHANNESBURG, Sept 22 (Reuters) – South African lender Absa (ABGJ.J) said on Wednesday it is working to bring Black investors into its shareholder base under a plan accounting for up to 8% of its share capital once implemented.
The Black economic empowerment (BEE) transaction is still under development, but will be open to both third parties and staff members and is expected to be implemented in 2022.
BEE is a government initiative to reverse ongoing economic inequalities almost three decades after the end of apartheid, and encourages companies to meet quotas in areas such as Black ownership, employment and procurement.
Companies that do more towards BEE are more likely to qualify for government tenders.
Absa transferred a 10% stake to a Black investor group in 2004 in a BEE transaction.
Reporting by Emma Rumney; editing by Jason Neely
Our Standards: The Thomson Reuters Trust Principles.
Mark White is the editor of the ProcurementNation, a Media Outlet covering supply chain and logistics issues. He joined The New York Times in 2007 as an commodities reporter, and most recently served as foreign-exchange editor in New York.