UZINZO: CHANGING THE LANDSCAPE OF SUGARCANE FARMING IN KZN
As agri-processing giant Tongaat Hulett exits sugar farming, sweet success is being tasted by previously disadvantaged individuals who are taking the gap.
A strategic review and turnaround process currently underway within Tongaat Hulett has identified the opportunity for the company to exit its direct sugarcane farming activities in South Africa.
Tongaat Hulett’s South African sugar operations encompass 119 000 hectares of which 8 400 hectares are owned and farmed by the company, 61 500 hectares are owned and farmed by white commercial farmers and 49 300 hectares are owned and farmed by previously disadvantaged individuals (PDIs). Tongaat Hulett’s aspirations is to shift the PDI supply mix towards a 50% share.
To meet these aspirations, Tongaat Hulett has established FarmCo, a transformation initiative to ensure that land which has been targeted for future property development remains productive under sugarcane. Numerous farms will transition through creating opportunities for third party growers to farm company owned land thereby mitigating potential job losses at the farm level.
Phase 1 of FarmCo is set to meet the Agri-BEE scorecard objectives including equity and ownership profiles, through the creation of a large-scale black-owned sugarcane farming enterprise. The initiative will also reduce the impact of retrenchment through employee empowerment; focus only on the estates that have the highest agronomic potential; and maintain full economies of size and scale of estates. In addition, FarmCo is set to encourage youth participation and ensure meaningful participation of black farmers within the sugar industry.
To make the transformation initiative a reality, Tongaat Hulett facilitated the creation of Uzinzo Sugar Farming, which means stability in isiZulu. Uzinzo will enable shareholders to lease three prime agricultural estates at below market-related rental. The leased area is approximately 3 900 hectares with an estimated annual production of 160 000 tons of sugarcane, making Uzinzo Sugar Farming one of Tongaat Hulett’s top five largest supplying growers.
The three farms extend over both coastal and the Midlands regions, mitigating climate risks. They also grow different variants of cane, some of which are harvested annually and other crops every second year. Farming will also include food crops.
Uzinzo’s annual revenue is expected to be around R79 million, which together with its scale of production, will make it the first broad-based agricultural company to feature amongst the largest 10 sugarcane farmers in KwaZulu-Natal.
Three dynamic individuals, Nonhlanhla Gumede (33), Khetha Ncalane (45) and Khumbulani Mthethwa (44) have been selected to be at the helm of Uzinzo Sugar Farming. These individuals have a 65% shareholding. There is also a 15% shareholding for the employees through an Employee Trust that has been created. Tongaat Hulett, which will retain a 20% shareholding, will play a facilitative and mentorship role in the short-term while the shareholders familiarise themselves with the various intricacies of this sugar farming business.
Nonhlanhla has a nine-year experience within the agricultural sector. She spent a short period at the start of her career within the banking sector. In 2011 she joined her father in the management of a 90.3-hectare farm. The six-years’ experience on her father’s farm motivated her to buy her own farm, which she did in 2017. Nonhlanhla’s 170-hectare farm has the potential to produce 3 300 tons of sugarcane. She has diversified her business to also grow, supply and distribute fresh produce to schools as part of the Ilembe Enterprise development programme, which has enabled her to employ more labour on her farm.
“I’m very excited to be part of Uzinzo Sugar Farming,” said Nonhlanhla.
“Uzinzo will allow me to grow and learn from my colleagues who have considerable experience in farming. It will also encourage young women to see the future in agriculture.”
Nonhlanhla also believes that the sugar industry plays an important role in assisting government to deal with the challenge of unemployment.
“Agriculture is contributing to employment creation and local economic development,” said Nonhlanhla.
Khetha Ncalane, another shareholder within Uzinzo Sugar Farming, has a long history with Tongaat Hulett. He was first introduced to Tongaat Hulett when his father was employed as a general worker. Many years later, Ncalane joined Tongaat Hulett himself and has worked as a trainee; an estate supervisor and manager in many Tongaat Hulett Estates including Wewe, Hillhead and Dube Ridge.
In 2003, Ncalane established his own company, called Emkay. In its first year of operation Emkay harvested 45 000 tons of sugarcane. The business has grown over the past 16 years and he now harvests between 200 000 – 250 000 tons of sugarcane in his various operations. He also provides a wide range of agricultural services to small-scale and land reform growers. As a true operator, Ncalane said that based on the current projections, the three estates have the potential to produce 160 000 tons. However, Ncalane believes that Uzinzo will in fact be able to produce between 180 000 and 190 000 tons.
“I’m honoured to be part of Uzinzo Sugar Farming,” said Ncalane. “Uzinzo is responding to the government’s transformation agenda as 65% of the company is black-owned.”
He also believes that his other business partners were well equipped to make Uzinzo a success.
Khumbulani Mthethwa, the third shareholder, was born in Ndulinde under Inkosi Mhlongo. This traditional leadership area forms part of the Ilembe district municipality. Mthethwa knew from an early age that he wanted to be part of the agricultural sector. This passion propelled him to purchase a 271-hectare farm in 2011 which is annually producing 10 000 tons of sugarcane. In 2018, he bought his second farm which is 120 hectares and has the potential to produce 5 000 tons. In addition, Mthethwa is one of the largest harvesting contractors within the sugar industry. He is currently harvesting 270 000 tons of sugarcane for small-scale growers in communal areas.
As part of his commitment to poverty alleviation and food security, Mthethwa has established a five-hectare vegetable block in Ndulinde. He supplies Enterprise Ilembe with his produce monthly. He has also applied through the Department of Economic Development, Tourism and Environmental Affairs to be part of the Radical Agrarian Socio-Economic Transformation (RASET) programme. Through RASET, he will also be one of the service providers producing vegetables for the surrounding schools and hospitals.
“I have been humbled by the trust bestowed to Uzinzo by Tongaat Hulett,” said Mthethwa. “There was no room for failure. We will work in partnership with government to address issues of unemployment, youth and rural development.”
SUSPENSION OF LISTING OF SHARES
The decision this week by the Board to request the suspension of the listing of Tongaat Hulett shares on the Johannesburg Stock Exchange was voluntary, and followed the recently announced delay in publishing our financial statements and the ongoing review into past financial practices.
The reason for the suspension was to ensure that the market had relevant information to enable fair trading. It will also allow management more time to complete the forensic investigation and the restatement of the financial results. The suspension of our listing is temporary, and the Board plans to re-instate the listing when we publish our financial results at the end of October this year.
Tongaat Hulett CEO Gavin Hudson said the suspension does not have an impact on day to day operations and Tongaat Hulett continues as a going concern. Tongaat Hulett has a significant asset base and is in the process of finalising the valuation of its underlying businesses and land portfolio.
“It is important to note, that from an operational point of view, it is business as usual, and we will continue to deal responsibly with our customers, suppliers, growers and all other stakeholders,” he said.
The suspension would also allow the management of Tongaat to focus on the company’s comprehensive turnaround strategy, he said.
The Board and management have taken several immediate and remedial decisions to improve cash generation by significantly reducing costs, right-sizing operations and improving operating performance. Significant changes to management and reporting structures are being implemented, and these changes are already showing benefits.
The company continues to engage positively in a collaborative process with its lenders to ensure Tongaat Hulett’s long-term sustainability by reducing the business’s debt to an appropriate level.
A restructuring sub-committee of the Board has been established to facilitate the turnaround process and support executive management.
Tongaat, KwaZulu-Natal
11 June 2019
PROGRESS ON PRIORITY AREAS IDENTIFIED TO TURN AROUND THE BUSINESS
Further to the trading statement that was recently issued regarding the challenges the business is facing, it is important to note that work is far advanced regarding a number of priority areas that have been identified to turn around the business.
These areas include streamlining the operations, rationalising where appropriate and improving business performance and accountability. These matters are receiving the urgent attention of the Board and leadership.
The identification of these priority areas follows a comprehensive strategic and financial review initiated in February following my appointment as CEO and that of Rob Aitken as CFO. The review was deemed urgent to stabilise the company, address debt levels and put the company on a path towards acceptable shareholder returns.
During the course of the strategic and financial review, it became clear that that the business is facing more challenges and operational performance has continued to decline. As a result, Tongaat Hulett provided both a trading update and trading statement to the market.
The company will outline further details of the review with the release of the final results, scheduled for May 2019.
Kind regards
Gavin Hudson
GO!DURBAN N2 BRIDGE – STITCHING CORNUBIA INTO UMHLANGA
The Cornubia Bridge, a key component of eThekwini’s GO!Durban IRPTN network which crosses the N2 highway linking onto uMhlanga Ridge Boulevard is about to open to traffic and will complete the primary access into Cornubia with direct access from the N2 as well as providing an additional alternative access into uMhlanga Ridge.
Planned to accommodate both the C8 and C9 GO!Durban networks from the airport and Bridge City respectively, the Cornubia Bridge fulfils a number of functions, not least of which is to open up Cornubia directly from uMhlanga – boding well for investment aspirations in Cornubia Town Centre, Cornubia Business Estate and the housing projects in uMhlanga Hills.
The bridge structure is 125 metres long and 50 metres wide. It represents a significant engineering feat and comprises three individual bridges that were “stitched together” to form a single structure carrying six mixed-use traffic lanes as well as pedestrian sidewalks and two bus lanes, according to Project Engineer, Brian Downie.
Tongaat Hulett Developments executive Selemo Sefehle said that the opening of the R280 million flyover, which was a joint venture between Tongaat Hulett and the eThekwini Municipality, was not so much about moving traffic as it was about facilitating the creation of inclusive, compact urban precincts, linking people to opportunities and accelerating development potential. Improved accessibility to Cornubia and uMhlanga Ridge would further enhance investment in the region, he said.
“The bridge over the N2, with its dedicated bus lanes, has been a vital key in unlocking the development of the C9 route from KwaMashu to uMhlanga for the GO!Durban integrated public transport network,” says Thami Manyathi, Head of the eThekwini Transport Authority. “The eThekwini Municipality’s vision for the new transport network, which links the entire City, is driven by the need to redress the imbalances of the past and propel the economy forward. Areas that have been historically segregated are now being linked. This means better access to opportunities, as well as the potential for economic activities to develop around the transport nodes. The bridge is a great reminder that the improvement of public transport is not about infrastructure and roads, but about the connections and links human beings are able to make with people and places.”
Downie said that the Cornubia flyover was a good example of proactive planning on behalf of Tongaat Hulett Developments and the eThekwini Municipality.
“Positive development thrives on good infrastructure. The current success of uMhlanga / Cornubia began with the construction of the N2 (Durban Outer Ring Road) and has continued with constant upgrades to the roads system,” he explained.
The Mount Edgecombe interchange – which opened earlier this year and was funded by SANRAL, eThekwini Municipality and the KZN Department of Transport – has already impacted positively on business confidence in the area.
Not only has the interchange alleviated congestion that sometimes manifested in 2-kilometre-long queues on the N2 highway, but greatly improved the prospect of further investment in the region.
Konrad Kohler, a development manager at Fortress REIT, which is partnering with M&F Giuricich Developments in the development of the R1-billion Cornubia Ridge Logistics Park that is adjacent to the N2 and closest to the Cornubia flyover, said that the close proximity to the N2 had been integral to the developers’ decision to invest in the area in the first place. It would also be key to attracting blue chip tenants requiring easy access to major arterial routes between Durban and the King Shaka International Airport and Dube TradePort.
Work on the Cornubia Ridge Logistics Park began in February 2017. Platforms were created to allow for approximately 120 000m² of logistics / retail development.
“The first tenant has been secured and we are currently constructing a 19 000m² retail store for Makro which will be ready to trade in March next year. Plans have also been submitted for the first speculative warehouse of 22 000m² and we wish to commence with construction early in 2019,” he said.
Sefehle said that construction of the Cornubia Bridge was in line with the shared vision between eThekwini and Tongaat Hulett Developments.
“Our vision was to establish Cornubia as an aspirational commercial and residential location. It meets all the criteria needed to attract tenants with specific needs and the opening of the Cornubia flyover will add considerably to establishing the area as a prime commercial opportunity. Tongaat Hulett Development’s focus is geared towards cities or spaces that are integrated, inclusionary and compact and which ultimately result in a more liveable city! We plan urban spaces by taking an all-inclusive approach. Transport infrastructure that facilitates the movement of people is a key part of this,” he said.
NTSHONGWENI URBAN DEVELOPMENT RECEIVES CONSTRUCTION GO AHEAD
Civil construction on the Ntshongweni Urban Development has been approved to start in early 2019. The 2000-hectare project is the next logical urban precinct expected to unlock significant economic activity for Durban’s largely under serviced outer west sub-region.
The development is set to provide a framework for environmentally sustainable, community-centric and inclusive urbanisation. Tongaat Hulett is responsible for the overall development vision and the concept framework plan which aligns with the public sector policy, plans and objectives. This extends to the creation of compelling and tailored real estate solutions for developers, investors, future residents and end users within the Ntshongweni Urban Development.
Once completed, the site will provide critical spatial, social and economic linkages to the existing surround communities including KwaNdengezi and Dassenhoek (to the south), Summerveld (to the west), Assagay and Hillcrest (to the north).
The retail and urban core development will be the first phase of the multiple phased development which will anchor the site as a mixed use, urban precinct centered around a new regional retailing offering, followed by a variety of other uses including residential, logistics, recreational, warehousing and leisure components.
The design will make substantial provision for the development’s ecological well being as well as responding to the needs to the people who use it.
Tongaat Hulett Developments Managing Director, Michael Deighton comments:
“All development rights for the Retail and Urban Core are in place and we officially have the go ahead to break ground in the first quarter of 2019.”
Commencing alongside essential road upgrades to Kassier Road, the first phase of construction in the retail and urban precinct will ultimately generate 19 000 construction jobs. Deighton elaborates:
“The road upgrades are necessary to accommodate future growth, paving the way for this new precinct.”
“The N3 corridor is currently the country’s busiest transport route and will be upgraded in line with the aim of improving the country’s logistics and transport links. Linking into this important strategic corridor, the people-centred Ntshongweni Urban Development will create a benchmark for the way in which new, integrated, inclusive South African urban precincts are developed. From urban planning through to the residential, retail, commercial, recreational, logistics and light industrial activities, the mixed uses of this area are vast.”
Approximately 1 000 hectares of open space is being allocated for passive and active recreational use.
“The area is well known for its outdoor pastimes with a strong horse riding, trail running and cycling community already enjoying the surrounds, and we aim to elevate and enhance these activities for established and new communities to access and enjoy” says Deighton.
Tongaat Hulett Developments will implement their comprehensive iThuba programme to ensure socio-economic benefits are felt where needed most. Bongani Gumede, Tongaat Hulett’s Executive responsible for community, public and private partnerships in execution states that:
“This tried and tested approach will embed social relevance, access to opportunities, localisation of skills, enterprise development and the creation of sustainable inclusive communities in every facet of the development execution.”
Over the 20-year construction period, Ntshongweni is expected to generate 400 000 temporary construction jobs, 35 000 permanent jobs, R700 million in annual rates for the eThekwini Municipality and R5,1 billion in annual tax revenue.
The new urban core will offer residents shopping and leisure opportunities cure
“Capitalising on this area’s beauty, the development will bring much welcomed progress while providing a turn-key solution for unlocking the region’s significant potential and therefore improving the quality of life for the people residing in the area.”
“Despite the current economic downturn, we are fully confident in Ntshongweni’s immense potential to bring more people closer to essential employment opportunities and urban services and amenities while creating a favourable investment climate for investors and developers. These far-reaching socio-economic benefits are why the development is regarded as a catalyst for change in this underserviced semi-rural area” Deighton concludes.
WHEN THE PUBLIC AND PRIVATE SECTORS WORK TOGETHER, COMMUNITIES THRIVE
Coordinated public investment in public and economic infrastructure can transform township economies and catalyse private sector investment.
This was emphasised in former finance minister Malusi Gigaba’s 2018 Budget speech when he referred to the Bridge City hub, north of Durban in KwaZulu-Natal, as an example of a successful public-private partnership leading to social and economic transformation.
At Tongaat Hulett, we are proud of the Bridge City precinct and what our collaboration with the eThekwini municipality and provincial authorities is achieving, but this is only one of several developments achieving significant upliftment through urban planning and the mobilisation of private capital.
At its heart, the nature of a mixed-use development is one of the single most transforming, uplifting, empowering, innovative, opportunity-creating and value-producing basic urban principles.
When we speak of mixed-use property developments, we are referring to “mixed” in a much broader context than the conventional one of residential, commercial and retail. Given the scale of the projects at Tongaat Hulett, we look at the variability across occupants, pricing, products and ownership structures.
We are in a unique position to work to the benefit of all stakeholders. But key to this is to work with the local authorities. eThekwini has a land-use spatial framework and we collaborate with the municipality and other authorities to achieve the best possible use of land for the benefit of the broader Durban and KwaZulu-Natal community.
Tying all aspects of land use together is critical and can only be done holistically. For example, eThekwini’s Integrated Rapid Public Transport Network (IRPTN) plan – under the GO!Durban brand – is creating links across the greater metropolitan region along nine key corridors and via feeder routes. By 2030 the city will be completely transformed with interconnected stations, roads, bus and rail lines.
Add to this the massive infrastructure development taking place, including bulk service supply such as water and sanitation, and the need is clear for an integrated city-wide framework.
Our planning philosophy is the complete antithesis of apartheid planning. Under the previous regime, Bridge City was a segregated area with a single access point, deliberately designed to exclude. Today it is a growing transport and business hub that explicitly links communities. This is not unique in our developments. Cornubia, for example, is equally aimed at tying the urban knot.
If you study the history of cities, the reason they exist is to bring people together for social and commercial interaction. Being closer and being linked to other urban areas improves and enhances the lives of the people in these communities.
We believe in integration and proximity rather than segregation, as we work towards overcoming the apartheid era of spatial exclusion as seen in dormitory towns with daily commutes to work and retail facilities. This creates vast benefits for communities in more wholesome environments with greater access to job opportunities and urban amenities. Beyond the need for privacy and ownership of their own dwellings, people need thriving, high-quality public spaces, parks and streets.
How can an investor get involved in our vision and help empower and enhance South African communities?
Take a long-term view: A fundamental element is to look at the long-term picture. Our developments are decades in the making. Gateway Theatre of Shopping, for example, represented highly interventionist thinking when it was developed in the late 1990s, based on a bold new concept that has proved successful.
Consider what you aim to achieve: Look at the big picture, and think as broadly and as strategically as you can. If you had the opportunity, without any of the usual business constraints, what would your business concept be? Then test that against the development framework and see where innovation can take you.
Spatial framework: Look for a region or municipality that has a well-thought-out spatial framework as this can give an investor confidence for 20 years. With strategically driven urban planning, much of the risk is removed for investors. To invest in a region where there is a developmental framework in place, this significantly reduces investment risk.
Collaborate with key stakeholders: One of our aims at Tongaat Hulett Developments is to de-risk local investment. Our vision at Bridge City is to create a dynamic, harmonious and well-balanced city precinct of the highest aesthetic, landscape and urban design. Through the establishment of a management association, the precinct is well managed and has flourishing, safe open spaces and a strong, sustainable programme, which results in a more certain investment environment.
It is not surprising that the North-South Durban Rail Corridor is proving to be one of the investment hotspots in the country. Land is the catalyst for change. With eThekwini creating the framework and Tongaat Hulett facilitating the development, the ball can move to the developers’ court.
Reviving township economies and linking them back into the urban system is essential to transform SA. Changing their essence from isolated dormitory towns to vibrant, thriving communities for social and commercial enterprise will reverse past ills and lead to greater prosperity for all.
TONGAAT HULETT COMMISSIONS CHIREDZI GAS PLANT
Tongaat Hulett, Zimbabwe’s largest sugar producer, has commissioned a 40-tonne liquefied petroleum gas plant in Chiredzi that will provide renewable and clean energy to more than 5 000 workers of the country’s single largest employer. Tongaat, which owns Triangle and Hippo Valley Estates employs close to 18 000 workers.
Under the project, Tongaat will provide gas, stoves and cylinders to the workers. Kensys Gas, which installed the plant has procured nearly 5 000 two plate gas stoves for the workers. This will reduce demand for electricity and use of wood for heating.
Kensys, the leading LPG company with plants in Bluffhill and Graniteside in Harare was contracted by Tongaat to build the plant as well as procure stoves and cylinders for workers. At this scale, the project is the first of its kind in Zimbabwe.
“This is a reflection that Zimbabwean companies can make a change,” Zimbabwe Energy Regulatory Authority chief executive Eng Gloria Magombo said during the commissioning of the plant recently.
“The plant is state of the art and meets global standards.”
Kensys has also installed 12 filling points in the townships to ensure easy access of gas and plans 28 additional ones later.
Over the past few years, Zimbabwe has experienced a significant rise in consumption of liquefied petroleum gas as households opt for cleaner alternative energy.
Eng Magombo said LPG gas usage had risen from 6 million tonnes a year to about 35 million kg in the past five years. Households are increasingly using gas for cooking as an alternative to electricity and wood.
The uptake of LPG has been on the increase due to consumers’ awareness 0f the need to use cleaner energy. Consumers have also realised the benefits of using LPG as an alternative source of energy as part of managing their electricity bills. LPG is a cleaner form of energy mainly for heating and cooking compared to wood fuel.
The use of LPG contributes to a reduction in use of wood fuel and lessens pressure on the national electricity grid. ZERA has been rolling out awareness campaigns on the safe use of LPG at both retail and household level and this has also helped to increase the uptake of gas.
Tongaat enterprise development executive Thomas Dheka said the company felt it was time to shift towards more and efficient energy for its workers.
“For us, it is a small step and greater things are coming,” said Mr Dheka. It is a milestone achievement and we believe this is the way to go.
“This project is going to have fundamental impact on the lives of the people of Chiredzi. The next phase of the project would be lighting and work has already started. He said the project was implemented on time and met the prescribed specifications. The beneficiaries would initially have an allocation of 6kg of gas a month.
Environmental Management Agency officer, Mr Charles Mughodhi said the project would go a long way in reducing deforestation and carbon emissions. Zimbabwe is a signatory to the Paris climate change accord of 2015 which largely seeks to hold the increase of the global average temperature to below 2 degrees Celsius by reducing carbon emissions.
“As we celebrate this milestone achievement, we appeal that you educate people on how to handle the gas appliances,” he said.
He said the projects would slow deforestation and will reduce the destruction of the ozone layer. Kensys director Ronald Ndoro said the project was one of the major to be implemented by the company since it started operations a few years ago.
“We are fairly new in the market but we are making a huge impact and this project bear testimony to what I am talking about. We are confident that the project will make a difference to the workers of Triangle in particular and Chiredzi in general,” he said.
RETIRE KZN STIMULATES OVER R1 BILLION IN RETIREMENT INVESTMENT
The Retire KZN initiative, launched by sugar and property giant Tongaat Hulett 18 months ago, has already helped inject approximately R1 billion in retirement investments into KwaZulu-Natal. And, there is more investment on the horizon.
That’s the word from Chris du Toit, Commercial Head Tongaat Hulett Developments.
“Retire KZN has been a resounding success as it has transformed the perception of retirement in KwaZulu-Natal. The interest from property developers looking at KwaZulu-Natal for opportunities is growing, and with the key insights and information gathered, developers and investors have a better understanding of the needs of the retirement market and are delivering demand-led retirement products,” said du Toit.
“Tongaat Hulett seeks to play a significant role in developmental change in KwaZulu-Natal, maximising the value generated by optimum utilisation of land through its conversion to most appropriate land use. Creating Retire KZN has helped achieve this goal by positioning KwaZulu-Natal as a retirement destination, building a solid community and facilitating new retirement opportunities with our development partners across a range of retirement models,” he added.
Some 18 months since the introduction of Retire KZN, the initiative has established a community of almost 3000 online members, reached an average 193 000 people monthly on social media and facilitated the commencement of two new retirement developments in the region.
The two new retirement developments as part of the Retire KZN campaign include Mount Edgecombe Retirement Village and Shoreline Sibaya. Mount Edgecombe Retirement Village, north of Durban, was the first retirement introduction to the market and has recently been recognised as one of 2017’s top five retirement estates in South Africa by New World Wealth and AfrAsia Bank. Shoreline Sibaya, the second retirement introduction to the market, is the first retirement opportunity within the premier Sibaya Coastal Precinct along the North Coast. Additionally, Tongaat Hulett has also recently transacted one of the largest retirement life-rights developers in the country, Evergreen Lifestyle, into Umhlanga Ridgeside.
Most significantly, Retire KZN has assisted in profiling KwaZulu-Natal as the ideal retirement destination for retirees and developers alike. Boasting year-round warm weather, blue flag beaches, “big five” game reserves and picturesque mountains, the province offers a selection of incredible amenities, is home to exceptional healthcare facilities, is a close-knit community, and has convenient city dwellings. Durban has been ranked as the best South African city to live in by the Knight Frank Global Residential Cities Index 2017.
Through the research and data collected, developers are appreciating market insights. For example, research indicates that 69% of the market is looking for retirement units under R2 million and that security, pet-friendly living and having an onsite care-centre are important attributes to incorporate into retirement developments. Retire KZN is a bold initiative that is taking the growth trajectory for the province to another level. Its presence has resulted in retirement data analysis, boosted investment into the region and ultimately bolstered the overall confidence in the retirement sector across all levels.
VITAMIN A SUGAR FORTIFICATION LAUNCHED IN MOZAMBIQUE
The Mozambican sugar fortification programme was recently launched at Tongaat Hulett’s Mafambisse sugar mill.
A partnership between the Government of Mozambique, World Food Program, the Mozambican Sugar industry, through APAMO, and Mill House, resulted in the successful roll-out of vitamin A fortification for all sugar sold in Mozambique.
In 2016 the Mozambican Government legislated vitamin A, E and D micronutrients fortification of several basic foodstuffs including flour, oil and sugar, with the aim of improving the health of the general population. As one of the key daily products in the general population’s food basket, sugar generally has very low consumption per capita in Mozambique, in fact amongst the lowest in the world at 9 kg per year. Sugar was identified as the ideal vehicle for vitamin A fortification.
The fortification project was funded by the Government of Mozambique and the World Food Program. Mill house, a South African based company, was appointed by the Government to supply specialised equipment for the fortification project as well as Vitamin A premix, to all four sugar mills in Mozambique. The installation of this equipment, which was carried out as joint ventures between each mill and Mill House, was completed by end of September 2017.
The launch event was held on 30 November 2017, with the Minister of Trade and Industry, Dr Enersto Max Tonela, as the guest of honour responsible for cutting the ribbon and unveiling the plaque. Thereafter the guests witnessed the official fortification plant start-up.
In his speech, Dr Enersto Max Tonela praised the sugar industry for their commitment and dedication in supporting the government to ensure the success of this important socio-economic development program, and actively participating in providing nutrition to the nation through Vitamin A fortification. He further commented that a healthy nation sustains not only the country but businesses as well.
He appreciated the efforts by the sugar industry in creating employment and mentioned that the government is very pleased with the current efforts by industry and looks forward to its support going into the future.
The launch event was also attended by Dr Eduarda M Zandamela of CONFAM, the leaders of the food committee within the ministry of Industry and Commerce, World Food Program Representatives, APAMO and DNA, representing the sugar industry, local Government representatives from Sofala Province, Dondo District, local leaders from Mafambisse and surrounding areas, Sugar Union representatives, employees and the Mafambisse community.
Speaking at the launch event Joao Jeque, executive director of the Association of Sugar Producers in Mozambique (APAMO), said that annual installed capacity had increased by about half a million metric tons from 50,000 hectares of cane fields.
“The workforce had also increased substantially, by about 41,000 workers*, meaning that, directly and indirectly, some 213,200 people benefit from the employment generated by this sector of the manufacturing industry.” He said
In the 1970s the Mozambique sugar industry, which consisted of six Sugar Mills, produced nearly 200 000 tons of sugar per annum. However, as a result of the war between 1977 and 1992, production level dropped to just 13 000 tons resulting in a sugar deficit position for the country.
Today the Mozambican sugar industry operates four sugar mills, namely Tongaat Hulett’s Xinavane and Mafambisse Mills, Illovo Sugar’s Maragra Mill and Sena’s Marromeu Mill, who between them have invested some US$800 million in recent years, focussed on rebuilding production capacity.
Annual sugar production levels having increased from 13 000 tons to 480 000 tons per year, of which roughly 50 percent is for local consumption, distributed to consumers through the national sugar distributor, DNA.
* Includes external beneficiaries from service providers, growers and related support entities linked to the industry’s activities along the supply chain, 30,000 of which are direct employees within the supply chain
TONGAAT HULETT RECOGNISED AS GLOBAL LEADER IN SUSTAINABLE WATER
Tongaat Hulett has been recognised as a global leader in sustainable water management and has been awarded a position on this year’s Water A-List by CDP, the non-profit global environmental disclosure platform.
The Water A List comprises 73 global companies, and is published alongside similar lists for corporate leadership on climate and forests. The Water A List has been produced at the request of 827 investors with assets of over US$100 trillion. Hundreds of companies submit annual water disclosures to CDP for independent assessment against its scoring methodology.
Tongaat Hulett is among 10% of companies participating in CDP’s water program that have been included on the Water A List, in recognition of its actions in the last reporting year to manage water more sustainably.
Peter Staude CEO of Tongaat Hulett says, “Water is an essential input in the business and all operations are affected by the variability associated with water availability. To this end, Tongaat Hulett is partnering with various stakeholders including the uMhlathuze Water Stewardship Partnership to manage this resource. Inclusion in CDP’s Water A-List confirms our prudent management of this scarce resource and is further acknowledgement of the business’s ongoing commitment to water recycling and reuse whenever possible”.
The Water A List is released alongside the Climate A List and Forests A List on CDP’s website, with case studies from leading companies. This is the first year that the non-profit has announced company scores across all three areas simultaneously, reflecting a holistic approach to corporate sustainability.
CDP’s Executive Chair Paul Dickinson said: “Congratulations to all the companies that made it onto the Water A List this year. Climate change, industrialisation and population growth are putting unprecedented pressure on water supplies. 43% of companies say they’re already facing water risks that could disrupt their business. Because of this, companies are stepping up for a water secure world, moving us towards a tipping point on environmental action”.
The Water A-List and other company scores are available on CDP’s website: https://www.cdp.net/en/scores-2017
The scores are released on the same day as CDP’s second annual analysis in the series: Tracking progress on corporate climate action. This year’s assessment reveals that more companies are setting increasingly ambitious and longer-term climate targets, while the transition to a low-carbon economy is also driving product innovation and the uptake of new tools for change.
About CDP
CDP is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Voted number one climate research provider by investors and working with institutional investors with assets of US$100 trillion, we leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts. Over 6,300 companies with some 55% of global market capitalisation disclosed environmental data through CDP in 2017. This is in addition to the over 500 cities and 100 states and regions who disclosed, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change. CDP, formerly Carbon Disclosure Project, is a founding member of the We Mean Business Coalition. Please visit www.cdp.net or follow us @CDP to find out more.
The methodology and criteria for the Water A List are available on CDP’s website.
