Increasing black ownership of Absa, while empowering communities and staff.
Absa Group implemented a significant broad-based black economic empowerment (B-BBEE) transaction on 1 September 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 transaction has increased 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 sees 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 focus 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 is allocated to staff and community members through a Staff Trust and a Community Trust, respectively.
- The transaction has 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 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 are able to participate equally in a cash-equivalent staff component, subject to any required approvals.
Our CEO Arrie Rautenbach - addressing colleagues at the colleague celebration on 1 September 2023
Absa announced initial details of the proposed transaction
Further details were published in a circular to shareholders
Shareholders approved the transaction
The transaction was implemented
The staff scheme is anticipated to reach maturity