Increasing black ownership of Absa, while empowering communities and staff

Absa Group will implement a significant broad-based black economic empowerment (B-BBEE) transaction, subject to shareholder approvals, in 2023. This is a clear expression of our commitment to meaningful transformation in the context of South Africa, as well as diversity and inclusion in Africa more broadly. 

The proposed transaction will increase black ownership in Absa to above the 25% threshold as set out in the Financial Sector Charter, strengthening Absa’s B-BBEE credentials in South Africa, in line with national priorities that are intended to promote an inclusive economic landscape.  

The transaction will see 7% of the total Absa Group shareholding allocated to structures that will benefit black participants in a Corporate Social Investment (CSI) Trust, as well as employees. The CSI Trust will be focused on education and youth employability support for black South African beneficiaries, contributing towards job creation and the empowerment of our communities in an impactful manner. 

This milestone development underscores Absa’s commitment to be an active force for good in everything we do and demonstrates how we are living our purpose, which is: ‘Empowering Africa’s tomorrow, together … one story at a time.’  

About the transaction

  • 7% of Absa Group shareholding will be allocated to staff and community members through a Staff Trust and a Community Trust, respectively.
  • The transaction will have an evergreen CSI component that will benefit black participants in selected education and youth employability programmes in South Africa.
  • All permanent staff based in South Africa will participate equally in a staff equity component, with our previously disadvantaged South African staff receiving a 20% higher allocation.
  • Staff employed by our subsidiaries in all other countries in Africa and our other international operations will be able to participate equally in a cash-equivalent staff component, subject to any required approvals.

Timeline

March 2023

Absa announces initial details of the proposed transaction. 

May 2023

Further details will be published in a circular to shareholders.  

June 2023

Shareholders will vote on the transaction at a general meeting.

September 2023

Subject to shareholder approval, the transaction will be implemented.  

September 2028

The staff schemes reach maturity.

Frequently Asked Questions

For further details, please refer to our media release in the Media Statements section.