Staff Reporter
Coca-Cola Beverages South Africa (CCBSA) has launched its landmark Ikageng Employee Share Trust that will offer its employees shares and direct economic participation in the business.
Ikageng, which means “let’s build ourselves” in SeTswana, will benefit nearly 8 000 South Africa-based employees working at CCBSA, Coca-Cola Beverages Africa (CCBA) and Appletiser.
CCBSA managing director Velaphi Ratshefola said in a statement the initiative was aimed at ensuring employees have a vested interest in the company and encourage them to participate in the company’s long-term vision of sustained profitability.
“We remain committed to the ideal of transformation and B-BBEE, and this investment is driven by the recognition that employees are our biggest asset, as they enable innovation, growth and the sustainable development of our company” he said.
According to the company, all employees will receive an equal number of shares regardless of staff level, race or years of service.
“Since inception in May 2016, CCBSA took a bold step to contribute meaningfully to the country’s ideal to be an inclusive and transformed organisation. We committed ourselves to becoming a level 2 contributor by 2021 and set off on our journey to achieve this,” Ratshefola said.
The Ikageng Trust holds a shareholding in Coca-Cola Fortune (Pty) Ltd (CCF), which in turn owns 100 percent of CCBSA.
The trust is fully funded through Notional Vendor Funding (NVF), with a portion of the dividends reducing the NVF and a portion paid to beneficiaries.
This allows for the NVF amount to be settled and the transfer of a higher net value to beneficiaries in the long term, while allowing beneficiaries to also receive benefits from the outset.
Ratshefola said the company’s transformation strategy is aimed at promoting more black ownership and encourage the previously disadvantaged to be actively involved in the country’s economy.
“It is in this spirit that we have established the Ikageng Employee Share Trust to extend the ownership opportunity to our employees,” he said.
“We have always maintained that we see the merger conditions set out by the competition authorities as an opportunity to impact our society meaningfully . . . ”
The company said employees will not be required to pay anything to assume the shareholding, adding they automatically become shareholders as soon as they join the company.