KENYA – Kenyan-based technology food distribution platform, Twiga Foods has set up an employee share ownership plan (ESOP), to grant its workers a stake of the company in a bid to attract and retain best talents.
Under the plan, according to a press-release by the company, will see 156 workers of the online distributor allotted shares over the next four years.
In the thick of it, the employees will get shares equivalent to 10 percent of the company’s estimated future exit value which is what is raked in after the sale of an asset or a business.
The ESOP aims at aligning the aspirations of management to those of shareholders in creating long term value in the business, but, also attract and retain high calibre talent that will help contribute to the future success of the business.
“This also aligns with the company’s long held view of creating value for multiple stakeholders, the farmers we work with, our customers, who consist of informal retailers, our employees, who are critical in bringing everything together and the government, that creates a conducive environment that allows companies like ourselves to operate,” indicated the company.
Peter Njonjo, Twiga‘s CEO and Co-Founder mentioned that this is a significant development in the company’s history and hopes that this will play a critical role in helping the company achieve its vision of providing affordable access to high-quality food and grocery across African cities.
The program will also be accessible to managers who join the company in the future, especially as the organization gears towards launching its expansion to other African countries in 2021.
“This is a significant development in the company’s history and hopes that this will play a critical role in helping the company achieve its vision of providing affordable access to high-quality food and grocery across African cities.”
Twiga‘s CEO and Co-Founder – Peter Njonjo
With the move, Twiga Foods joins companies such as Coca-Cola Beverages South Africa (CCBSA) and Dairibord Zimbabwe Limited in offering a slice of the company’s shares to its employees.
In June, CCBSA made its 8,000 employees a lucky lot by allowing them to ‘taste the feeling’ of its shares through the Ikageng Employee Share Trust created to offer workers shares and direct economic participation in the business.
Ikageng, which means “let us build ourselves” in Tswana, owns a 5 percent stake in Coca-Cola Fortune, the CCBSA’s parent company.
Its primary focus is to ensure that every employee receives an equal allocation of shares regardless of staff level, race or years of service, the beverage maker said.
CCBSA said that of the total participation units, 25 per cent would be held in reserve for future employees and the remaining 75 per cent of the participation units were allocated equally among the eligible employees, irrespective of grade or salary as at May 26.
The dividends to be paid by the Ikageng Employee Share Trust would come from Coca-Cola Fortune, based on performance and dividends declared by CCBSA.
Meanwhile, DZL leading milk and dairy products producer in Zimbabwe increased its employees’ stake in the company to 5 %.
The DZL Holdings Employee Share Trust was formed in 2005 through a loan extended by the company which saw employees acquiring 10 million shares equivalent to around 3.15% of the total issued share capital at the time.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
