Unilever's Multi-million Rand Consent Agreement to Boost Schools and SMEs

In an unprecedented move, consumer goods company, Unilever, is set to benefit thousands of schools and small-medium enterprises (SMEs) in South Africa, following the conclusion of a multi-million rand consent agreement with the Competition Commission. The consent agreement, validated by the Competition Tribunal, mandates Unilever to pay a hefty administrative penalty of R16 million, albeit without liability. This penalty is an echo of its engagement in market division within the edible fats and oils industry between the years 2004 to 2012.

Unilever's commitment goes beyond the administrative penalty as the company also plans to institute an Enterprise and Supplier Development Fund valued at R40 million. The Commission spokesperson, Siyabulela Makunga, has elucidated that the fund primarily aims to provide interest-free business loans to eligible black-owned entities in the manufacturing, logistics, and wholesale industries in South Africa. These entities, however, would have to meet Unilever's specified credit and selection criteria to qualify.

The company's planned initiatives extend to increasing its annual procurement value from local entities by a minimum of R340 million over a four-year span, ensuring support to local businesses. Additionally, Unilever has pledged to donate hygiene, disinfectant, and oral care products valued at R3 million to at least 18,780 public schools over the next five years.

Commending the agreement, Commissioner Doris Tshepe stated that their confirmation promotes healthy competition and initiates positive changes on the South African business front.