Caterpillar and the South African Department of Trade and Industry officially launched the largest ever Equity Equivalent Investment Program (EEIP) in the country.
Caterpillar has committed to source components and related services in South Africa worth a total estimated value of approximately 1.3 billion Rand (about $96 million) over the next 10 years in support of local enterprise and supplier development.
“We see that these agreements are also positive for the companies which participate in the Equity Equivalent Investment Programme. I want to commend Caterpillar for embarking on this journey with us as partners to stimulate and grow the South African economy. I look forward to see these commitments being executed,” said the South African Minister of Trade and Industry, Rob Davies at the launch event at Barlow Park near Johannesburg.
This commitment is one of Caterpillar’s largest engagements in Africa to date, and is part of the previously announced plan of Caterpillar, its independent dealers and the Caterpillar Foundation to invest more than $1 billion in countries throughout Africa over five years.
“Our multi-year commitment will help develop South Africa’s industrial local supplier base, generate more inclusive economic growth, and support our goal to be a leading B-BBEE (Broad-Based Black Economic Empowerment) organization in the industries we serve,” said Chris Monge, Caterpillar Director for Southern Africa. “We look forward to working with the South African government towards transformation and industrialization.”
“Our participation in the EEIP supports the development of local suppliers and enterprises, local content, skills transfer and development and job creation,” added Zakieya Parker, Managing Director, Caterpillar Industries. “The localization opportunities we are looking at include sourcing components locally to support the mining, construction, energy, and transportation industries.”