Inzalo dividend: hope pumps up

There might be some joy for the majority of black investors in Sasol Inzalo – the R28 billion empowerment scheme the oil and chemicals group launched in 2008 – as they stand to receive a portion of cash as dividends when the scheme expires in September.

About 270 000 Inzalo investors faced the risk of not receiving anything after 10 years of being invested in the scheme because Sasol’s share price was battered by volatile oil prices and the rand.

For investors to benefit from Inzalo, which holds 10% of Sasol group shares, Sasol’s share price had to have appreciated from its long-held level of R370 to above R480 when the scheme expires on September 7. Until recently, Sasol’s share price barely traded above the R370 levels.

However, recently elevated international oil prices and a weaker rand have worked in favour of Sasol’s share price, which has traded in a range of R502 to R548 since June. Sasol says at the current share price level, Inzalo investors will get a portion of cash when the scheme expires.