CASE STUDIES
Setting aside South African government corruption, DE&I minority ownership introduction in publicly traded corporations was an enduring legacy of Nelson Mandela and was incredibly successful
83% of the Top 100 Johannesburg Stock Exchange publicly traded companies introduced minority empowerment shareholding including the use of structured finance, creating $31 billion for DE&I beneficiaries
To work, DE&I must be good for minorities and good for the system
Case Studies
Vodaphone . Telecoms
6.25% empowerment shareholding
$360 million DE&I value created
Anglo American . Mining
2% empowerment shareholding
$1 billion DE&I value created
First Rand Group . Banking
4.2% empowerment shareholding
$230 million DE&I value created
Barclays Africa Banking : 11.5% empowerment (Absa)
Tiger Brands Consumer : 7.2% empowerment
Sanlam Insurance : 8.0% empowerment
Lessons learnt Adding DE&I minority shareholding was an iterative journey with many models tried and that evolved in real world application. A few key success underpinnings emerged (i) funded transactions, (ii) de-risking transactions to the funders, (iii) matching entrepreneurial drive with broad based community beneficiaries and (iv) appropriate governance structures. These lessons and many case studies inform our approach to a blended model for DE&I minority shareholding for the USA.
Reference Note: Treasury Report here, JSE Top 100 reference page 19, Vodaphone page 11, Anglo American page 18, First Rand page 14
83% of the Top 100 Johannesburg Stock Exchange publicly traded companies introduced minority empowerment shareholding including the use of structured finance, creating $31 billion for DE&I beneficiaries
To work, DE&I must be good for minorities and good for the system
Case Studies
Vodaphone . Telecoms
6.25% empowerment shareholding
$360 million DE&I value created
Anglo American . Mining
2% empowerment shareholding
$1 billion DE&I value created
First Rand Group . Banking
4.2% empowerment shareholding
$230 million DE&I value created
Barclays Africa Banking : 11.5% empowerment (Absa)
Tiger Brands Consumer : 7.2% empowerment
Sanlam Insurance : 8.0% empowerment
Lessons learnt Adding DE&I minority shareholding was an iterative journey with many models tried and that evolved in real world application. A few key success underpinnings emerged (i) funded transactions, (ii) de-risking transactions to the funders, (iii) matching entrepreneurial drive with broad based community beneficiaries and (iv) appropriate governance structures. These lessons and many case studies inform our approach to a blended model for DE&I minority shareholding for the USA.
Reference Note: Treasury Report here, JSE Top 100 reference page 19, Vodaphone page 11, Anglo American page 18, First Rand page 14