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ABSA UNVEILS SECOND BLACK EMPOWERMENT INITIATIVE

By BUUMBA CHIMBULU

A second significant broad-based black economic empowerment (B-BBEE) transaction is expected to be implemented next year by Absa Group Limited.

This is part of Absa’s broader efforts to achieve transformation in a meaningful and sustainable way.

The planned transaction cements the groups’ longstanding view and approach of creating inclusive growth in Africa.

This is according to the Jason Quinn, Absa Interim Group Chief Executive.

Mr Quinn explained that the intention to undertake a new B-BBEE transaction demonstrated Absa’s significant commitment to transformation.

“While it is aligned with the South African Government’s B-BBEE objectives and with the commitments contained in the Financial Sector Code, we will also extend the offer to include employees across our operating markets,” he said.

While the transaction is in development, it is currently envisaged that the scheme will hold up to eight percent of the Group’s issued share capital.

The staff component will enable all Absa employees across the Group’s operations, including Zambia, to become shareholders and to participate in the Group’s growth.

Subsequently, as part of its separation from Barclays PLC, Absa announced that it would undertake a new B-BBEE transaction in line with its transformation efforts.

Barclays transferred a 1.5 percent stake in Absa to the Absa Empowerment Trust in 2017.

Full details of the proposed scheme, which will be subject to shareholder and other approvals, will be published once the design has been finalised.

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