BAT Zimbabwe: investing in the future

British America Tobacco Zimbabwe has spent more than US$5 million over the past five years in capital investments, according to a story in The Herald quoting the company’s finance director, Peter Doona.

About 50 per cent of the expenditure was invested in manufacturing and Doona said that the company would increase its capital expenditure this year further to enhance its manufacturing capability.

BAT Zimbabwe, which is said to be operating at 65 per cent capacity, accounts for 79 per cent of the local market.

It has close to 100 workers on its payroll and is one of the companies that are complying with the country’s empowerment laws.

Its share Employee Share Ownership Trust (ESOT) was established in compliance with indigenisation legislation aimed at giving employees an opportunity to participate directly in the development and growth of the company.

The Herald story said that, with the establishment of the ESOT, BAT Zimbabwe was effectively transferring more than two million shares to its employees. At the current share price of US$4.50, this equates to close to US$10 million.