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Irrespective of size, reputation, experience, and capability, being awarded a project is not as easy and achievable as in other countries due to the B-BBEE (Broad-Based Black Economic Empowerment) legislation introduced by the Government of South Africa, which is unique and only applicable to firms registered and trading in South Africa. www.theexchange.africa

Old Mutual okays new Bula Tsela black empowerment share scheme

Investing

Nasdaq in an article dated April 20, 2022, said the move is classed as Black economic empowerment (BEE) transaction, a government initiative to reverse ongoing economic inequalities almost three decades after the end of apartheid, encouraging companies to meet quotas in areas including Black ownership, employment, and procurement.

“This deal underpins our firm belief that real transformation is necessary to sustain business growth and serve the best interests of all South Africans,” CEO Iain Williamson said in a statement.

“Through this Old Mutual Bula Tsela Retail Scheme, we will give our people the opportunity to become (indirect) owners of the company they love and trust,” he added.

The new shares will constitute approximately 4.36 per cent of Old Mutual’s current issued share capital and 4.18 per cent of the enlarged share capital.

Padenga Holdings Limited A story of Gold and Crocodiles

Padenga Holdings Limited: A story of gold & crocodiles

Investing

Interestingly if the US$9 million which the company said it lost from the statutory surrender requirement is added back to the top-line revenue, it will take the company’s revenues for the 2021 financial year to just above US$ 24 million which would be higher than what it achieved in 2020. This policy position which the company lamented needs revision by the authorities as it is inflicting real financial harm to companies that are Zimbabwe’s biggest exporters and earners of foreign exchange.

In the 2021 financial year, Padenga Holdings Limited incurred higher interest expenses at US$ 10,138,637 which was up from US$ 6,665,084.00 the previous year. The increase in this cost category was due to leverage and borrowings which Padenga employed in rehabilitating the Eureka gold mine which is now in full production and is also responsible for the increase in group revenues.

The company enjoyed increased production from its gold mining operations. The company sold a staggering 976 kilograms of gold which was higher than the 722 kilograms of gold sold in 2020. The increase in gold production came from the newly commissioned Eureka gold mine. From its crocodile operations, Padenga Holdings Limited sold a total of 55,341 skins which was less than the 72,244 skins it sold in 2020. The Zimbabwe crocodile operation sold 39,936 skins down from 43,254 skins that it sold in 2020.