Business / Companies
Coca Cola is compliant with Zimbabwe indigenisation laws
29 Mar 2011 at 05:00hrs | Views
COCA-Cola Central Africa Limited says it does not fall under the ambit of the country's indigenisation laws, contrary to recent reports that it was yet to comply with the empowerment thresholds.
The company was listed among 795 companies believed to have not yet submitted plans on how they intend to comply with the law.
The provisions of the new regulations compel foreign companies to indicate how they intend to cede at least 51 percent to black Zimbabweans in the next five years. Coca-Cola Central Africa is a locally registered service company whose primary role is to provide marketing and other technical support services to Atlanta-based Coca-Cola Export Corporation.
The corporation enjoyed 100 percent in Schweppes Zimbabwe and Schweppes Export. It sold its entire stake to Delta Corporation and Whaterton Investment, a group comprised of workers and management.
Delta bought 49 percent while Whaterton acquired the remaining shares. A company spokesperson yesterday said that contrary to recent media reports that CCCA was yet to submit its plan to meet the indigenisation threshold, it was, in fact, in compliance.
"CCCA and Coca Cola Export Corporation sought and were granted approval by the Ministry of Youth Development, Indigenisation and Economic Empowerment to divest 51 percent of Schweppes Zimbabwe into the hands of the employees and management of SZL.
"The 49 percent remained in the hands of Delta Beverages Limited and this transaction has been fully and successfully concluded," said CCCA spokesperson in a statement.
"CCCA, therefore, does not fall under the ambit of the requirements of the Indigenisation and Economic Empowerment Act."
Youth Development, Indigenisation and Economic Empowerment Minister Mr Saviour Kasukuwere confirmed in an interview yesterday that CCCA was in compliance.
"We do not have any issues with Coca Cola Central Africa as far as indigenisation is concerned," said the minister.
The company was listed among 795 companies believed to have not yet submitted plans on how they intend to comply with the law.
The provisions of the new regulations compel foreign companies to indicate how they intend to cede at least 51 percent to black Zimbabweans in the next five years. Coca-Cola Central Africa is a locally registered service company whose primary role is to provide marketing and other technical support services to Atlanta-based Coca-Cola Export Corporation.
The corporation enjoyed 100 percent in Schweppes Zimbabwe and Schweppes Export. It sold its entire stake to Delta Corporation and Whaterton Investment, a group comprised of workers and management.
Delta bought 49 percent while Whaterton acquired the remaining shares. A company spokesperson yesterday said that contrary to recent media reports that CCCA was yet to submit its plan to meet the indigenisation threshold, it was, in fact, in compliance.
"CCCA and Coca Cola Export Corporation sought and were granted approval by the Ministry of Youth Development, Indigenisation and Economic Empowerment to divest 51 percent of Schweppes Zimbabwe into the hands of the employees and management of SZL.
"The 49 percent remained in the hands of Delta Beverages Limited and this transaction has been fully and successfully concluded," said CCCA spokesperson in a statement.
"CCCA, therefore, does not fall under the ambit of the requirements of the Indigenisation and Economic Empowerment Act."
Youth Development, Indigenisation and Economic Empowerment Minister Mr Saviour Kasukuwere confirmed in an interview yesterday that CCCA was in compliance.
"We do not have any issues with Coca Cola Central Africa as far as indigenisation is concerned," said the minister.
Source - Byo24News
