Capital Equipment News November 2017

Zakieya Parker, Managing Director, Caterpillar Industries, speaking at the official launch of Caterpillar’s EEIP in Johannesburg, South Africa.

Dr Rob Davies, South Africa’s Minister of Trade and Industry, commended Caterpillar for its commitment to transformation in South Africa.

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2017

2021

R900m 2024

R1,3 billion 2027

R0.0

R500m

Caterpillar’s EEIP aims to localise a cumulative R1,3 billion (about US$90 million) of component content over the next 10 years

The investment is based on the 25% of the business value of Caterpillar’s South African operations

Caterpillar’s EEIP is expected to create about 3 900 direct and indirect jobs

The EEIP is a dti initiative for multinational companies that are unable to relinquish shareholding to contribute towards their B-BBEE obligations

of Good Practice require that all entities operating in South Africa make a contri- bution towards the objectives of B-BBEE. It is, however, acknowledged that there may exist multinationals, such as Caterpil- lar, that have global practices preventing them from complying with the ownership element of B-BBEE through the traditional sale of shares to black South Africans. In such instances, and provided that it can be proven that such entities don’t en- ter into any ownership arrangements in other countries globally, the B-BBEE codes make provision for the recognition of con- tributions in lieu of such sale of equity. Such contributions are referred to as Equi-

“The proposed programme is aimed at contributing towards product localisation to further capacitate the South African industrial base. The investment amount is R1,3 billion, based on the 25% of the busi- ness value of Caterpillar’s South African operations,” says Davies. Zakieya Parker, MD of Caterpillar In- dustries, said the 10-year investment will allow local, empowered South African sup- pliers to develop world-class capabilities and the capacity to plug into Caterpillar’s global supply chain, adding that this also opens up opportunities to regional and global markets. “Caterpillar welcomes the opportunity

ty Equivalent and are measurable against 25% of the value of operations in South Africa. Caterpillar applied for participation in the EEIP with the aim of empowering local and black-owned enterprises through en- terprise and supplier development. Speak- ing at the official launch of the historic empowerment deal on 4 October 2017, Rob Davies, Minister of Trade and Industry, said on 21 January 2016, Caterpillar Southern Africa was granted exemption from selling equity and was instead allowed to partici- pate in the EEIP. Caterpillar’s EEIP initiative becomes the 9 th of such empowerment deals already concluded in South Africa.

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