Enhanced livelihoods

Overview

Our goal is to improve the livelihoods of thousands of people by providing opportunities across our value chain for inclusive economic participation.

Context

South Africa's economy consistently underperforms, amplifying chronic poverty and inequality, with high unemployment rates reflecting a legacy of racial exclusion. Many households face significant pressure and struggle to meet basic nutritional needs. Public health challenges, growing governmental dysfunction and infrastructure failure, and declines in environmental quality exacerbate economic constraints. The COVID-19 pandemic increased the economic challenges of households and amplified the need for businesses to drive social redress and economic transformation.

As one of Africa's largest listed food manufacturers, we have significant positive impact on livelihoods through our direct operations, procurement practices and extended value chain. We are committed to driving black economic empowerment through our business practices, and invest in a mandated percentage of our net profit after tax in socio-economic development (SED) and enterprise and supplier development (ESD). These are key avenues through which we can address socio-economic risks to our business and pursue opportunities for economic transformation.

Approach

Our approach to addressing these socio-economic risks to our business and support economic transformation in South Africa is informed by and aligned with the Broad-based Black Economic Empowerment (B-BBEE) Act and related codes of good practice.

The B-BBEE Act mandates listed companies to promote economic transformation by enhancing the participation of black people in the economy. This includes black economic participation through ownership, management control, skills development ( see – Learning and development), employment equity ( see – Diversity and inclusion), enterprise and supplier development (ESD), and socio-economic development (SED). A company's performance is independently assessed against these elements according to a set methodology approved by government and reported on the DTIC's B-BBEE scorecard. Companies are graded on their B-BBEE contributor level, influencing their ability to do business with government and certain other private-sector entities.

We strive for a positive social impact beyond compliance, guided by our sustainability and external relations strategies, which reflect the key elements of the B-BBEE scorecard, as well as promote synergy with our stakeholder relations and brand-building strategies.

Our 2030 targets

50% of our total procurement spend towards black/black women-owned suppliers
Support 1 000 black enterprises
Create 4 000 jobs
Build an ESD fund of R400 million through partnerships
Prioritise local and regional sourcing of agricultural raw materials
100% of our products ethically sourced
Support 20 community enterprises

Our key initiatives

Support new black and black women-owned enterprises and create sustainable livelihood opportunities
Annually contribute up to 1,5% of net profit after tax towards socio-economic development activities that promote sustainable thriving communities
Attract, source and develop a skilled and diverse workforce, and create an inclusive and collaborative work environment where our people can thrive, grow and innovate

( see page ?? – Our people)