Black shareholders of MultiChoice South Africa (MCSA) are smiling to the bank after the company declared a dividend to Phuthuma Nathi shareholders of R1.5bn.

This is an increase of 13.6% from 2018. The company, in a media statement, explained that the additional 5% share allocation given to Phuthuma Nathi, as part of MultiChoice Group’s (MCG) listing, contributed to the increase in dividend declared to the shareholders.

Puthuma Nathi owns a 25% stake in MCSA, the South African operations of MCG, being MCSA.

“We are pleased to announce an increased dividend to our Phuthuma Nathi shareholders despite tough economic conditions,” says MCG CEO Calvo Malewa.

“The Phuthuma Nathi schemes have now been running for about 13 years and we’re proud that we are able to share our success with thousands of black South Africans.

“The dividends are a way we can demonstrate our thanks to our shareholders for the role they have played in transforming MultiChoice South Africa,” he said.

Phuthuma Nathi has more than 90,000 black shareholders, including individuals, stokvels and black-owned companies. MCG listed on Johannesburg Stock Exchange in February 2019, and thereafter was unbundled from Naspers.

As part of this transaction, the PN companies were allocated an additional 5% share allocation in MCSA, which increased PN’s shareholding from 20% to 25%. The additional 5% allocation is a substantial contribution by the MCG to PN and reinforces the MCG’s commitment to broad, socioeconomic transformation in South Africa.

By September 2019, approximately R11.9bn will have been paid in dividends to PN companies. Some of the PN shareholders have used the dividends they have received to build homes for their families, pay their children’s university fees and buy investments for retirement.

“This is another demonstration of MultiChoice’s continued commitment to broad-based black economic empowerment and to further enhance the value for Phuthuma Nathi shareholders,” said chairman of Phuthuma Nathi, Mandla Langa.