• Grain pain

    Corn crops could break records this year, but for farmers the bounty has a dark side.

  • Node joins TV revolution

    The movie-on-demand business has a new contender, says Arthur Goldstuck.

  • SA market needs Nokia

    A user says the brand should stay as it has great offerings at reasonable prices.

See More

BAT Zim approves indigenisation plan

Oct 26 2012 13:47 Malcom Sharara, Fin24’s correspondent in Zimbabwe

Related Articles

'Indigenisation not nationalisation'

Zim's indigenisation progress hailed

BAT bows to Zim indigenisation

BAT expecting good year

BAT launches budget tobacco brand

BAT in ad bid to stop plain packaging

Harare - British American Tobacco (BAT) Zimbabwe shareholders unanimously approved its indigenisation proposal at an extraordinary general meeting held on Friday morning. This means that 26% of the shareholding will be transferred to indigenous investors.

Under the new shareholding structure, 10.74% will go to a corporate social investment trust that will focus on the development and support of indigenous tobacco growers, 10% to the employee share trust for the benefit of permanent BAT Zimbabwe employees, while the remaining 5.26% will be retained by existing indigenous shareholders.

The authorised share capital increased to US$20.63m from $17.38m.

The indigenisation thresholds applicable to the manufacturing sector were gazetted in General Notice 459 of 2011. This requires companies in the manufacturing sector to comply with indigenisation as follows:

• Within the first year, 26% shareholding is required to be held by indigenous Zimbabweans by October 28 2012;

• Within the second year, 36% shareholding is required to be held by indigenous Zimbabweans by October 28 2013;

• Within the third year, 46% shareholding is required to be held by indigenous Zimbabweans by October 28 2014; and

• Within the fourth year, 51% shareholding is required to be held by indigenous Zimbabweans by October 28 2015.

The group said it will continue to work with the ministry as well as the National Indigenisation and Economic Empowerment Board on the indigenisation requirements.

BAT Plc will donate $3m to the employee share trust, translating to $20 000 per employee.

 - Fin24
bat  |  zimbabwe  |  indigenisation


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!


For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...