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Last Updated: Tuesday, 13 May, 2003, 14:27 GMT 15:27 UK
French oil firm boosts black power
Total South Africa advert
French oil giant Total has handed over a quarter of its South African operation to a consortium of black businesses and investors.

The move brings the company into line with a South African industry charter designed to boost "black empowerment" in the country.

In another move designed to give black people a greater say in South African business, four of the country's business lobby groups joined forces to create a united chamber of business.

The surprise announcement combines two black business groups and two mainly white business chambers.

Turning voting rights into shares

Total is one of the last of the large oil firms to comply with the country's oil industry charter.

The company says that 25% of voting rights in its South African subsidiary will go straight away to the black-owned investment group although it will take 10 years for the shareholding to be converted into ordinary shares.

The vast majority of big business in South Africa is still owned by whites, more than a decade after the end of apartheid.

Total's black empowerment partner is Tosaco Ltd, a specially formed consortium that brings together black-led investment groups such as Calulo Investment Holding, SouthBase Investment Holdings and Development/Employee Trust.

It took more than one year to negotiate the deal, and the financial details have not been revealed, but Total has promised to reinvest the proceeds in the business.

The most recent figures, from 2001, show that Total has a 13% share of South Africa's petrol market.

During the past years, more and more large companies have struck deals with black empowerment firms - partly to comply with regulation and government policy, partly as recompense for their actions during the decades of the apartheid regime.

The country's Minerals and Energy Minister, Phumzile Mlambo-Ngcuka, also plans to go on a roadshow to South Africa's mining companies, to demonstrate what black economic empowerment opportunities can offer.

One voice for business

Four of the country's business lobby groups have joined forces in another step towards tearing down the barriers between black and white.

The Foundation for African Business and Consumer Services and the National African Chamber of Commerce and Industry both organised black-owned businesses.

The South African Chamber of Business and the Afrikaanse Handelsinstituut were mainly white.

But ahead of a government-organised Growth and Development Summit later this year, the four groups joined forces to "speak with one voice", said Patrice Motsepe, the newly elected chairman of the new business chamber.

The four chambers hope to present a unified organisation by September.




SEE ALSO:
South African business leader quits
02 Oct 02  |  Business
Mbeki urges black economic push
14 Feb 03  |  Business
ANC urges economic boost for blacks
21 Aug 02  |  Business


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