KGANKI MATABANE: Barloworld’s R23bn buyout — a defining moment for economic transformation in SA

With SA standing on the cusp of a new dawn in economic transformation, the landmark R23bn buyout of Barloworld sets the stage for real broad-based industrial empowerment.

The deal, endorsed by independent experts, the company’s independent board and the Black Business Council (BBC), is not just a corporate transaction; it is a bold step toward inclusive industrialisation and creating a thriving, black-owned business sector, 31 years into democracy. 

 At its core, this buyout is a commercially sound transaction that aligns with global best practice, ensures fair market valuation, and places black business at the heart of SA’s industrial evolution. It is also a signal that economic transformation is not about handouts, but about structural shifts that commercially integrate black excellence into the value chain of major industrial players. 

Reinforcing the BBC’s core mandate: to advocate for black participation in key economic sectors, the Barloworld deal marks a defining moment in corporate SA. It is a demonstration of what transformation should look like — not just policy compliance but real empowerment through ownership, enterprise development, and industrial participation.

Sending a powerful vote of confidence in the long-term investment prospects of SA, this deal is a game changer for the broader economic participation by black people. 

The R120-per-share offer provides a compelling premium, which has been validated by Rothschild & Co SA, an independent expert, ensuring that this is a market-driven, fair-value transaction that delivers value, in cash, to Barloworld shareholders.

The independent experts also put to rest concerns about the involvement of Barloworld’s Group CEO in the consortium, noting that appropriate safeguards against conflicts of interest had been established to uphold the integrity of the deal. This transaction is one of the many management buyouts that took place in SA. 

Importantly, Barloworld’s independent board has unanimously endorsed the transaction, confirming its strategic and financial viability and is recommending that shareholders approve the deal.

This deal is not just a buyout — it is the evolution of black ownership in heavy industry, manufacturing and logistics. Unlike previous empowerment deals that have lacked real control, this transaction ensures meaningful black participation in industrial decision-making.

By enabling a black-led consortium to acquire a majority stake in a sector that is critical to SA’s economic engine, it breaks the historic cycle of exclusion. 

It also aligns with the national transformation agenda, ensuring that empowerment extends beyond a single individual or company through the inclusion of the Khula Sizwe and Barloworld Foundation empowerment vehicles.

This is broad-based transformation that enables job creation, skills development and economic participation across the industrial supply chain, and demonstrates that black entrepreneurs are not just participants in the economy but owners, industrialists and wealth creators. 

True economic transformation is impossible without ownership. For too long SA’s economy has seen black participation without black control. This deal changes that narrative. With a majority of Barloworld set to be owned by black business, this transaction signals the real transfer of economic power — from participation to ownership, control and influence.

Economic change is not about being invited to the table — it is about owning the table, setting the agenda and defining the rules of the game. This buyout is proof that black business is ready, capable and strategically positioned to lead in SA’s industrialisation.

It is a message to the broader economy that ownership matters, and transformation without ownership is an illusion. The future of industrial SA cannot be business as usual. This deal paves the way for more black-owned enterprises to emerge as dominant forces in manufacturing, logistics and heavy industry. 

For real transformation to succeed the entire economic ecosystem — government, financial institutions and industry players — must rally behind transactions that fundamentally shift the ownership structure of the economy.

We call on government policymakers, regulators and industry stakeholders to champion and enable this deal, ensuring that policy frameworks support transactions of this scale; financial institutions prioritise funding models that facilitate broad-based black industrial participation; and that the private sector continues to partner with black-led industrial ventures to unlock further opportunities.

This deal must not be viewed in isolation. It sets a precedent, which if executed successfully will unlock more large-scale industrial transactions, creating a ripple effect that widens economic participation. 

The Barloworld buyout is not just about one company — it is about reshaping SA’s industrial landscape. It sends a clear message that transformation and commercial success are not mutually exclusive. The backing of the BBC and independent experts  affirms that this is a credible, value-driven and economically sound transaction. 

For years the conversation about transformation has been one of intent. Now we are seeing action. This is the new dawn of economic participation — a future where black business is not just included but integral to SA’s industrial backbone. 

We must ensure this momentum does not stop here. 

• Matabane is CEO of the Black Business Council.