SAB’s R6bn empowerment deal

first_imgThe bottling section of South African Breweries’ plant in Alrode, Johannesburg. (Image: Chris Kirchhoff,MediaClubSouthAfrica.com. For more free photos, visit the image library.)MediaClubSouthAfrica.com reporterMultinational brewing giant SABMiller has announced a major black economic empowerment deal that will see local subsidiary South African Breweries (SAB) transfer some 10% of its value, worth about R6-billion (US$750-million), to black participants.These will include SAB employees, black-owned liquor retailers – both those licensed to sell alcohol and those in the process of applying for a licence – as well as black-owned companies that are customers of ABI, SAB’s soft-drink division, and the broader black South African community.The deal, announced yesterday, is expected to cost the company about R1.8-billion ($220-million).“There are three innovative and distinctive features of this transaction,” Graham Mackay, chief executive of SABMiller plc, said in a statement. “Firstly, the transaction places no reliance on external bank funding, and requires only a relatively small and hence affordable cash investment from retail participants.“Secondly, a meaningful dividend stream is expected to be paid to all participants for the whole of the 10-year transaction period, thereby delivering a significant economic benefit from the first year.“Thirdly, the transaction aims to benefit the stakeholders who have made a real contribution to SAB’s success as well as the broader South African community through the SAB Foundation.”The transaction will not require any external bank funding, and will need only a small cash investment by participants who, SAB said, can expect meaningful cash dividends to be paid from the first year.At the end of the 10-year transaction period, participants will exchange their shareholdings in SAB for shares in SABMiller.One of the world’s largest brewers, SABMiller has brewing interests and distribution agreements across six continents.Its brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with top local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.The structure of SAB’s BEE deal will see the creation of three new investment groups – an employee trust, a retailer entity and the SAB Foundation. These will each will each subscribe for new separate classes of SAB ordinary shares, allocated in the ratio of 40:40:20 respectively.The deal will significantly improve SAB’s compliance with the South African government’s BEE Codes of Good Practice.These Codes aim to reduce the entrenched inequalities caused by apartheid and increase the participation of black people in the economy. BEE is seen as a key requirement for the promotion of sustainable economic growth and social development in South Africa. For the purposes of BEE, black people are defined as African, Indian, coloured and Chinese South Africans.As only licensed retailers or those who have applied for a licence qualify, SAB hopes the deal will support the liquor-licensing process in South Africa. This would legalise an effective distribution network – South Africa’s township taverns, known as shebeens.“There are considerable socioeconomic benefits to be derived from a normalised and regulated industry in which liquor retailers, the vast majority of whom are currently unlicensed, are formally incorporated into the economy and liquor industry,” the company said.The precise terms of the transaction are expected to be finalised after the November release of SABMiller’s interim results for the six months ending 30 September 2009. Subject to shareholder approval, it is likely to be implemented in the first half of 2010.Related articlesBlack economic empowermentSAB wins big, greens Boks Brewery spreads African reach Brewing up boutique beers SABMiller: global brewing giantUseful linksSABMiller South African Breweries Department of Trade and Industrylast_img read more

South African business encouraged to give more at conference

first_imgMelissa JavanBrand South Africa board chairperson Khanyisile Kweyama challenged business leaders to go above and beyond to change society for the better. Speaking at the 2016 In Good Company conference at the Atterbury Theatre in Pretoria on 30 August, Kweyama said: “It’s only when we create sustainable, durable solutions that we overcome challenges.”Sustainable change can be achieved, she argued, when companies are more creative and are courageous in the way it allocates corporate social investment (CSI) budgets. Far too often companies look at CSI as charitable spending rather than funds that can make real change. “CSI programmes can be invested in growing the country.”Why is enterprise and skills development not funded more often through CSI programmes, she questioned.She urged corporate leaders to show the way forward by being courageous, tenacious and resilient. “Let’s improve the social conditions and build a strong nation brand.”Create sustainable solutionsIn Good Company is part of an ongoing initiative run by Nation Builder, the conference organisers. Nation Builder helps companies channel it’s CSI into initiatives to make the most sustainable change in South Africa. Founded by the Muthobi Foundation, Nation Builder is a community of businesses and individuals dedicated to changing their communities through action.Keri Paschal, executive director of the Muthobi Foundation and trustee of Nation Builder, said it can be achieved “through the sharing of practice, lessons learned and the development of collaborative tools to equip all of us to achieve better results in our Good Giving, both individually and within our business.”Paschal explained that they have benchmarked charities and created tools and resources that help businesses gauge the success of their CSI projects.Research conducted by Nation Builder Trust has found that R8.1-billion is channelled annually through CSI budgets. It is estimated that that investment, if spent wisely, could generate R25-billion worth of economic activity.Informal traders, the invisible matrixGG Marc Alcock, author of Third World Child and KasiNomics, used the novelty of food trucks (entrepreneurial businesses that can generate between R25 000 and R100 000 a month) to explain how the country’s informal traders are contributing to the economy.When he noticed that employees were willing to spend R35 for a meal from a food truck when meals at the staff canteen were cheaper, he wondered why.“The food truck’s food doesn’t stay overnight. It is fresh,” was the answer.It gave Alcock important insight: businesses need to look at unique ways of meeting needs. It was the same with hawkers selling fruit and vegetables – customers bought it because it was fresh.“What about your neighbour being your competition?” Alcock asked the hawkers who sell the same products but sit next to each other. One answered: “I have my own customers, just like she [the neighbour] has her own.” Alcock said it showed that relationships are important in business.The value of spaza shops and spazarettesAlcock said that South Africa’s economy is being sustained by the informal sector. “We need to recognise the role the informal sector plays.”For example, there are 70 000 spaza shops, defined as a hole in the wall shop that sells basic necessities to customers, each could generate between R30 000 and R80 000 per month turnover. A spazarette is just a bigger version of a spaza shop, where customers buy weekly goods.He added: “Although they are below the tax bracket in terms of their profit, they pay VAT anyway when they buy their goods.”Alcock said the informal sector helps the unemployed earn a living. “We [as corporates] need to enhance, and support these businesses.“They are the invisible economic matrix, their businesses surround us, but we don’t see them.”Other speakers included Mike Schussler, director of Economists.co.za, and Francois van Niekerk, founder of the Mertech group and co-founder of Atterbury properties. Van Niekerk spoke about the marriage between business and purpose, while Schussler’s talk was titled We ignore the good news about South Africa at our peril.Conference host and actor Eric Miyeni said CSI should begin the day you start your business. “Most people think CSI is outside. You can start with your first employee, your first partner or yourself.“CSI is about being good to your fellow citizen.”Would you like to use this article in your publication or on your website? See Using SouthAfrica.info materiallast_img read more

5 Things Agencies Look for When Hiring Freelance Videographers

first_imgHere are five insights into landing those lucrative freelance agency gigs — and the guide to holding onto them once you do.In my time, I’ve been lucky enough to be on both sides of the freelancer table for agency video production gigs, and let me tell you that it’s just as fickle and arbitrary as you might fear.From a freelance videographer’s perspective, agency gigs can be some of the best, most lucrative jobs on the market. If they’re for large enough companies and brands, you can expect some of the best pay rates, plus peace of mind that you’ll be covered for your time and expenses. You can also be sure that your client won’t simply disappear —  you’ll be paid for your work. (Although, often, you have to wait months for your paycheck to process.)From an agency’s  perspective hiring a freelancer, working with outside videographers is usually a last resort, when in-house resources can’t fill the need. As a result, the gigs can often be rushed or last minute, and they require someone who can dive in immediately.Together, a symbiotic partnership is definitely possible, but both parties should strive to be aware of (as well as realistic about) what a freelance videographer can and should bring to the table.1. Camera(s) and GearImage via Elizaveta Galitckaia.Sadly, this might be what the majority of agencies ask about and look for when choosing a freelancer for a shoot. While there are plenty of instances wherein videographers might get hired without their own cameras — meaning they simply rent the requested camera — more often than not, agencies are looking for videographers who bring their own cameras to the table.Agencies don’t just look for the best camera available, either. They’ll often look for cameras that are most similar to the ones they already use in-house.If you’re a freelancer with your own camera(s), be sure to list this in your résumé or in any communication with the agency’s representatives. Include any other relevant gear you might already own, as well as other specific cameras you might not own but are proficient with, just in case they have access to this equipment.2. References and Word of MouthBefore we get to your demo reel or samples, agencies will probably choose to work with people they’ve worked with in the past, people referred to them, or people they’ve at least heard about or met — before they find anyone out of the blue.This is why I argue that networking and meeting people will always be more advantageous than just hunkering down and working on your demo reel or curating your Vimeo page. If you’ve done some solid work, stay in touch with those clients. Ask them for references or connections to other places where you might want to work.3. Relevant Samples (or Demo Reel)Image via FrameStockFootages.That being said, it’s helpful to have at least some sort of sample material to share with prospective new clients or agencies. A demo reel is great. Some old-school agencies might ask for a demo reel, and only a demo reel, to review your skills.However, the case usually comes down to relevant work samples. If you have a portfolio that demonstrates you’ve done similar shoots to the one you’re being considered for, that will be to your advantage.If you do have diverse work experiences, consider breaking down your portfolio into separate categories. You can always have multiple demo reels, for say, music videos, product videos, event films, weddings, etc.4. Reliability and ProfessionalismThis goes along with word of mouth. But in the agency world, you’re only as good as your reputation, and your reputation is only as good as your last shoot. If you’re serious about getting the top freelance agency video gigs, you must absolutely be reliable, show up early (not on time), and perform your work in a timely and professional manner.Sadly, all it takes is one bad step to find yourself blacklisted from entire networks.5. Positive Attitude and ResponsivenessHowever, try not to let the stakes get you down — agencies value positive, can-do attitudes above all else. From working on the inside, you’ll see agency representatives who might be a bit jaded, at times — don’t take your cues from them. They need you to be the lightening rod to get things done.Responsiveness might actually be the most important aspect of all. When a job need comes up, that first call is the most important. If you can’t answer the phone or email immediately, the job opportunity could easily pass you by.That doesn’t mean you need to sit around waiting by your phone 24/7. However, having a professional attitude, responding quickly and concisely, showing interest, explaining your expertise, and being up-front about your availabilities will keep you at the top of their lists.Cover image by gnepphoto.For more industry insights and advice, check out some of these resources:7 Tutorials on Adding The “Cinematic” Look to Your VideosFour Reasons You Should Use (and Love) Your Camera’s Stock Lens5 Ways to Add Value to Your Corporate Video Production ProjectsIndustry Insights: Careers in Commercial, Indie, or Corporate Filmmaking7 Things Clients Look For in a Video Production Companylast_img read more