The Most Successful and Well-Known B-BBEE Transactions in South Africa
Broad-Based Black Economic Empowerment (B-BBEE) has played a significant role in reshaping South Africa’s economic landscape. Over the years, several high-profile and successful B-BBEE transactions have made headlines for their scale, impact, and transformative outcomes. These deals have not only benefited black entrepreneurs and communities but also enabled businesses to grow, innovate, and strengthen their competitiveness.
Here, we take a closer look at some of the most successful and well-known B-BBEE transactions in South Africa and their significance for both business and society.
1. MTN Zakhele (MTN Group)
Transaction Overview:
In 2010, MTN Group, South Africa’s leading telecommunications giant, launched MTN Zakhele, a B-BBEE scheme worth ZAR 8.1 billion. The scheme aimed to empower black South Africans through equity ownership in MTN.
Outcome and Impact:
• MTN Zakhele allowed over 120,000 black investors to acquire shares in MTN, creating broad-based ownership.
• The scheme paid out significant dividends to participants over the years and successfully matured in 2016.
• In 2016, MTN Zakhele Futhi, a second empowerment scheme worth ZAR 9.9 billion, was introduced, extending MTN’s commitment to transformation.
Significance:
MTN Zakhele became a benchmark for how large companies could implement inclusive, impactful ownership schemes that empower individuals and communities while maintaining business growth.
2. Sasol Inzalo and Sasol Khanyisa (Sasol)
Transaction Overview:
In 2008, petrochemical giant Sasol launched Sasol Inzalo, a ZAR 26 billion empowerment scheme designed to give black South Africans a stake in the company. Following its conclusion in 2018, Sasol introduced a new B-BBEE initiative, Sasol Khanyisa, to continue driving transformation.
Outcome and Impact:
• Sasol Inzalo empowered over 300,000 black shareholders during its 10-year lifespan.
• Sasol Khanyisa expanded opportunities for black ownership by offering shares to employees and shareholders, ensuring broad-based participation.
• These transactions ensured sustainable transformation in the energy sector while creating real value for beneficiaries.
Significance:
The scale and inclusivity of Sasol’s B-BBEE initiatives demonstrated how businesses can empower individuals across all income levels, ensuring lasting socio-economic impact.
3. Vodacom YeboYethu (Vodacom Group)
Transaction Overview:
In 2008, Vodacom launched its empowerment scheme, YeboYethu, valued at ZAR 7.5 billion. The scheme enabled black investors and employees to acquire shares in Vodacom, one of South Africa’s largest telecommunications companies.
Outcome and Impact:
• Over 102,000 black investors participated in the scheme.
• YeboYethu generated significant wealth for its shareholders, with strong returns on investment as Vodacom’s share value grew.
• In 2018, Vodacom expanded the scheme with a new deal valued at ZAR 17.5 billion, consolidating its commitment to B-BBEE.
Significance:
YeboYethu showcased how employee and public participation in ownership transactions could create meaningful financial empowerment and economic inclusion.
4. Bidvest’s B-BBEE Transaction with Dinatla Investment Holdings
Transaction Overview:
In 2003, Bidvest, a diversified industrial company, concluded a B-BBEE deal with Dinatla Investment Holdings, a black empowerment consortium. The deal, valued at ZAR 2.1 billion, was one of the first large-scale empowerment transactions in South Africa.
Outcome and Impact:
• Dinatla acquired a 15% stake in Bidvest, benefiting black shareholders and empowering the consortium’s beneficiaries.
• The deal was financially successful, creating significant returns for Dinatla and establishing a model for future empowerment partnerships.
Significance:
Bidvest’s early adoption of B-BBEE demonstrated its leadership in transformation and set a precedent for other industrial players to follow.
5. Naspers Phuthuma Nathi (Naspers Group)
Transaction Overview:
In 2006, Naspers, South Africa’s leading media and technology company, launched Phuthuma Nathi, a B-BBEE share scheme valued at ZAR 7 billion. The transaction focused on providing black South Africans with a stake in MultiChoice South Africa, a subsidiary of Naspers.
Outcome and Impact:
• Phuthuma Nathi became one of South Africa’s most successful empowerment deals, benefiting over 90,000 black shareholders.
• The scheme delivered substantial dividends to investors, with shareholders seeing significant growth in their investment value.
• In 2019, MultiChoice expanded its empowerment initiatives, further increasing opportunities for participation.
Significance:
Phuthuma Nathi became a shining example of wealth creation through empowerment, demonstrating how B-BBEE could deliver real financial benefits to black investors.
6. Shoprite’s Employee Empowerment Scheme
Transaction Overview:
In 2019, retail giant Shoprite launched a ZAR 8.9 billion employee empowerment scheme to improve the lives of its employees, particularly those from historically disadvantaged backgrounds.
Outcome and Impact:
• Shoprite employees, many of whom were lower-income earners, were granted shares in the company.
• The scheme provided both ownership and annual dividends, creating long-term financial security for employees.
• This initiative was one of the largest employee-focused empowerment schemes in the retail sector.
Significance:
Shoprite’s transaction demonstrated how companies could empower employees through ownership, fostering loyalty, improving morale, and addressing income inequality.
Conclusion: Transformation Through B-BBEE Transactions
These well-known B-BBEE transactions reflect the transformative power of strategic empowerment initiatives in South Africa. From ownership deals and employee share schemes to enterprise development and skills transfer, these transactions have made meaningful contributions to addressing historical inequalities and building a more inclusive economy.
For businesses, B-BBEE transactions are not just about compliance—they are an opportunity to drive growth, secure new markets, and contribute to South Africa’s economic transformation.
At Enterprise Empowerment Services, we help businesses structure and implement B-BBEE transactions that align with their goals while delivering real value to stakeholders and communities.
Ready to explore the opportunities of B-BBEE for your business? Contact us today to learn how we can help you implement meaningful transformation strategies.
Transformation drives growth. Let’s build a better future, together.