Cisco Deepens Commitment to Economic Transformation in South Africa with Black Economic Empowerment Initiative

As part of its vision of participating in the socio-economic transformation of emerging markets around the globe, Cisco® today announced a wide-ranging Black Economic Empowerment (BEE) strategy for its South African operations which is closely aligned with the economic transformation goals of the government of South Africa.

Cisco’s BEE initiative is designed to support the meaningful participation of Black South Africans (African, Indian and Coloured persons) in the economic success of the company through the sale of equity to a broad-based consortium of Black South African investors. The grouping will include an external investment partner, a trust representing Cisco’s Black South African employees, and a newly created education trust. The transaction is subject to customary closing conditions, including regulatory approvals, and assuming that it is completed as anticipated:

The external investment partner and the employee and education trusts will receive long-term share participation rights, represented by shares in parent company Cisco Systems Inc., with a value equal to a 25.1 per cent stake in a newly created services organisation that will support the needs of major South African organisations.

The employee and education trusts will receive share participation rights with a value equal to a 25.1 per cent stake in Cisco Capital South Africa, which offers financing to both Cisco’s strategic customers and its broader customer base.

Lastly, the employee and education trusts will receive share participation rights, with a value equal to a 20 per cent stake in Cisco’s local sales and marketing organisation, which supports Cisco’s broad customer base in South Africa. Cisco products are already sold to this customer base through system integrators that include a BEE-empowered partner channel.

Black South African directors now make up 60 per cent of the local board of Cisco South Africa, and 60 and 62 per cent of its senior and junior management, respectively, consist of previously disadvantaged individuals. Female employees today account for approximately 30 per cent of the organisation.

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