The Minister of Trade and Industry, Dr Rob Davies will deliver a keynote address at the launch of mining and construction equipment manufacturer, Caterpillar’s Southern Africa’s Broad-Based Black Economic Empowerment (B-BBEE) Equity Equivalent Investment Programme (EEIP).
The launch will be held in Johannesburg on 4 October 2017.
According to Minister Davies, the EEIP is a Department of Trade and Industry (the dti) initiative where multinational companies are invited to participate and contribute positively towards the B-BBEE in South Africa and to do so under the ownership element.
“The programme is expected to contribute towards the achievement of enterprise creation and supplier development, foreign direct investment, accelerated growth and development of black rural women and youth, sustainable growth and development, human development with a focus on education and skills development, and infrastructure investment with an emphasis on developing the country’s research and development infrastructure,” says Davies.
Davies added that Caterpillar applied for participation in the EEIP with the aim of empowering local and black-owned enterprises through Enterprise and Supplier Development.
“On 21 January 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% of the business value from the South African operation,” added Davies.
The approved business plan seeks to promote localisation and industrialisation and is expected to create about 3 900 direct and indirect jobs.