Huge in­vest­ment in lo­cal en­ter­prises

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The largest Eq­uity Equiv­a­lent In­vest­ment Pro­gramme in the coun­try was launched re­cently

years, in sup­port of lo­cal en­ter­prise and sup­plier de­vel­op­ment.

“These agree­ments are also pos­i­tive for the com­pa­nies that par­tic­i­pate in the EEIP. I want to com­mend Cater­pil­lar for em­bark­ing on this jour­ney with us as part­ners to stim­u­late and grow the South African econ­omy. I look for­ward to see these com­mit­ments be­ing ex­e­cuted,” said Trade and In­dus­try Min­is­ter Davies.

The com­pany ap­plied for par­tic­i­pa­tion in the EEIP to em­power lo­cal and black-owned en­ter­prises through En­ter­prise and Sup­plier De­vel­op­ment. In 2016, Cater­pil­lar South­ern Africa was granted ex­emp­tion from sell­ing eq­uity and in­stead to par­tic­i­pate in the EEIP.

The pro­posed pro­gramme is aimed at con­tribut­ing to­wards prod­uct lo­cal­i­sa­tion to in­crease South African in­dus­trial base. The in­vest­ment amount is R1.3 bil­lion based on the 25 per­cent of the busi­ness value from the South African op­er­a­tion.

The ap­proved busi­ness plan seeks to pro­mote lo­cal­i­sa­tion and in­dus­tri­al­i­sa­tion and is ex­pected to cre­ate about 3 900 di­rect and in­di­rect jobs.

Min­is­ter Davies said the com­pany's com­mit­ment is one of its largest en­gage­ments in Africa to date. It is also part of the pre­vi­ously an­nounced plan of Cater­pil­lar, its in­de­pen­dent deal­ers and the Cater­pil­lar Foun­da­tion to in­vest more than $1 bil­lion in coun­tries through­out Africa over five years.

Cater­pil­lar's Di­rec­tor for South­ern Africa, Chris Monge, said the com­mit­ment will help to de­velop South Africa's lo­cal in­dus­trial sup­plier base. “Our multi-year com­mit­ment will help de­velop South Africa's in­dus­trial lo­cal sup­plier base, gen­er­ate more in­clu­sive eco­nomic growth, and sup­port our goal to be a lead­ing B-BBEE or­gan­i­sa­tion in the in­dus­tries we serve. We look for­ward to work­ing with the South African govern­ment to­wards trans­for­ma­tion and in­dus­tri­al­i­sa­tion,” said Monge.

The Man­ag­ing Di­rec­tor at Cater­pil­lar In­dus­tries (Pty) Ltd, Zakieya Parker, said the com­pany's par­tic­i­pa­tion in EEIP sup­ports the de­vel­op­ment of lo­cal sup­pli­ers and en­ter­prises.

“Our par­tic­i­pa­tion in EEIP sup­ports the de­vel­op­ment of lo­cal sup­pli­ers and en­ter­prises, lo­cal con­tent, skills trans­fer and de­vel­op­ment and job cre­ation.The lo­cal­i­sa­tion op­por­tu­ni­ties we are look­ing at in­clude sourc­ing com­po­nents lo­cally to sup­port the min­ing, con­struc­tion, en­ergy, and trans­porta­tion in­dus­tries,” said Parker.

Cater­pil­lar has been in South Africa since 1927, op­er­at­ing through in­de­pen­dent dealer Bar­loworld Equip­ment.

The com­pany re­cently in­vested in a new 60 000m2 parts dis­tri­bu­tion cen­tre in Jo­han­nes­burg, which is im­prov­ing cus­tomer ser­vice by ex­pand­ing avail­abil­ity of parts through­out the south­ern African re­gion, in­clud­ing the is­lands of Mau­ri­tius, Mada­gas­car and Re­union.

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