Tongaat Hulett

TONGAAT HULETT

STRIVING FOR A SWEETER TOMORROW Tongaat Hulett delivers the sweet taste of sustainability with responsible sugar production and community centred initiatives across Southern Africa Writer: Phoebe Harper | Project Manager: Kyle Livingstone

S

ugar production in South Africa is big business. In the harvest year of 2020/2021 alone, the country produced over two million metric tonnes of sugar – a significant contribution to the global production recorded during that time of 179.9 million tonnes.

Yet few major players in this R16 billion South African industry can boast the same prevailing commitments to ethical production, sustainability and a communitycentred outlook as Tongaat Hulett.

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Extending beyond South Africa alone, Tongaat Hulett comprises a network of sugar operations spanning sub-Saharan Africa, with a presence in Mozambique, Botswana, and Zimbabwe, in addition to its headquarters in KwaZulu-Natal.

Originally formed from a merger between Hulett Corporation Limited and the Tongaat Group Limited, the company benefits from the joint longevity of both enterprises, dating back to the 1800s. The company as it is known today has had a primary

listing on the Johannesburg Stock Exchange since 1952.

Tongaat Hulett’s significant asset base and operational footprint across Southern Africa comprises operations within both sugar production, and property.

In terms of sugar, Tongaat Hulett’s factories have an output of over 1.5 million tonnes a year for each factory, with activities centred on cane growing, sugar milling, and refining.

These assets have established the company as a leading agri-business producing a wide range of refined carbohydrate products from sugarcane including sugar ethanol, cattle and animal feeds.

With complementary segments of the business in agriculture and

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agri-processing, Tongaat Hulett conducts land conversion activities in close collaboration with local communities, businesses and the public sector. This serves to address the competitive dynamic of securing land for water or alternative land usages. The company proactively balances the operational requirements for cane supplies to its sugarcane processing operations with the appropriate transition of agricultural land at the required times.

Through this ongoing agricultural work, Tongaat Hulett has acquired a substantial portfolio of land within the major growth corridor of KwaZuluNatal. These land conversion and development activities support a

comprehensive social programme that defines the company’s status as a socially responsible corporate citizen.

Such programmes effectively enable the transformation of ownership and participation in the real estate value chain by creating opportunities for well-located and affordable neighbourhoods.

As a reflection of this, today just seven percent of the sugarcane lands that supply Tongaat Hulett’s South African sugar mills are owned by the company, while 41 percent are listed under local black ownership.

In addition, Tongaat Hulett boasts considerable expertise in biofuel production, electricity cogeneration, and downstream agricultural products.

SAFEGUARDING SUSTAINABILITY Tongaat Hulett’s overriding mission is to secure the company’s future by creating sustainable value for all stakeholders.

This is primarily achieved by adhering to the six capitals of value creation in an integrated way. Natural capital is a key pillar of this, covered under the company’s environment strategy with a focus on emissions reduction and water resources management. The remaining five pillars comprise manufactured, human, social and relationship and intellectual capital, alongside financial and operations review.

Tongaat Hulett’s eight sugar mills in Mozambique, South Africa and Africa Outlook issue 94 | 3

TONGAAT HULETT

Unitrans Mozambique Lda Unitrans Mozambique Lda is a Logistics and Supply Chain Solutions provider with a firm and established service history in Mozambique where they have been operating for the last 25 years.

Unitrans Mozambique Ltd (“Unitrans”) was formed in 1996, supplying logistics and transport services across a wide variety of sectors including FMCG logistics, sales and merchandising solutions, agricultural transport solutions (import and export) to the grains and mining sector, specialised agri focused fleeting solutions, land preparation, and extensive petrochemical transport. Unitrans has a wealth of experience and expertise gained across an array of operations carried out on behalf of major customers in various sectors, including the sugar industry.

TONGAAT HULETT – COMPANY AIMS • To create value for all stakeholders through an allinclusive approach to growth and development, through ongoing engagement with governments and society.

• To benefit from evolving dynamics of global sugar markets, and of renewable electricity and ethanol production in South Africa and the SADC region.

• To maximise the value generated from the conversion of land in the portfolio by responding to key demand drivers and identifying its optimal end use for all stakeholders.

• To be considered the developmental partner of choice for governments in the SADC regions in growing their agricultural sectors.

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Zimbabwe all generate electricity from bagasse during the sugarcane crushing season. In some instances, these operations supply electricity to the grid. In Zimbabwe, Triangle has an ethanol plant which provided 21.7 million litres for blending with petrol during the 2017/18 financial year.

The company is well placed to benefit from the evolving dynamics within the renewable energy sector, with the potential to build large-scale renewable electricity plants, as well as the opportunity to convert export sugar to ethanol across its Southern African operations.

Across all levels, Tongaat Hulett endorses a commitment to operating as ethically as possible in all five countries. The company applies the key principles of transparency, effective communication and accountability when engaging with the expectations of local communities, private farmers, consumers, suppliers, employees and its network of investors.

The Tongaat Hulett Board effectively monitors and tracks progress with regards to sustainability commitments, with a dedicated Social, Ethics, Health and Safety Committee.

With in-depth local expertise and a reputation as a reliable service provider, the correct and sufficient fleet size and resources, Unitrans is able to provide wide-ranging and comprehensive solutions.

Unitrans Mozambique Ltd intends to continue to grow their core businesses whilst providing value add ancillary services. In line with corporate social responsibilities Unitrans is a leading example of the success that can be achieved through genuine empowerment programs and opportunities. They are committed to provide exemplary service with their customers by developing long term relationships in a spirit of true strategic partnership. This is demonstrated with their longstanding relationships with several major entities in Mozambique, like Tongaat Hulett.

The success of their solutions and services are made possible by their practical management infrastructure from concept to implementation and operational management. They do not try to apply a standard solution to all prospective customers, but rather partner with the client to design a unique solution that accommodates the client’s individual needs.

www.unitrans.africa

UNITRANS AFRICA

AGRICULTURE IN MOZAMBIQUE OUR FOOTPRINT IN MOZAMBIQUE UNITRANS AFRICA OPERATING IN 10 AFRICAN COUNTRIES

Unitrans Mozambique operate at the four largest sugar estates in Mozambique, making us the largest contractor within the Mozambique sugar industry.

Unrivalled knowledge and experience places Unitrans Mozambique at the forefront of agricultural innovation within Mozambique. With a proudly passionate and dedicated team of over 1000 people, Unitrans Mozambique has been able to consistently deliver upon customer expectations for over 20 years.

Tanzania

OUR FOOTPRINT

Malawi

Zambia

Mozambique Botswana

Madagascar

Namibia

Our service offering continues to diversify as we seek to satisfy our customers’ ever-evolving technology and mechanisation needs.

South Africa

eSwatini Lesotho

NOSSA PEGADA EM MOÇAMBIQUE UNITRANS AFRICA AGRICULTURE SPECIALISED FLEET

A Unitrans Moçambique opera nas quatro maiores entidades açucareiras de Moçambique, o que nos torna o maior empreiteiro dentro da indústria açucareira de Moçambique.

-50 t/ha 50 - 80 t/ha 80 - 100 t/ha 100 + t/ha

Conhecimento e experiência incomparáveis colocam a Unitrans Moçambique na vanguarda da inovação agrícola em Moçambique. Com uma equipe orgulhosamente apaixonada e dedicada de mais de 1000 pessoas, a Unitrans Moçambique tem sido capaz de atender às expectativas dos clientes de maneira consistente por mais de 20 anos.

Nossa oferta de serviços continua a diversificar conforme buscamos satisfazer as necessidades de tecnologia e mecanização em constante evolução de nossos clientes.

AGRICULTURAL SERVICES:

Unitrans Africa

unitrans.africa

FARM TO FACTORY | FAZENDA PARA FÁBRICA Mechanical harvesting

All forms of infield haulage

Colheita mecanizada

Todas as formas de transporte interno

Escavadeira e carregamento sobre rodas

Transporte em linha da fazenda para a fábrica

Excavator and wheeled loading Crop / Sugarcane handling operations

Line haulage from farm to factory

Operações de manejo de safra / cana-de-açúcar

GPS GUIDED LAND PREPARATION | PREPARAÇÃO DE TERRA GUIADA POR GPS Bush clearing and primary land preparation

Drone application of various chemicals

Limpeza de mato e preparação primária de terras

Aplicação de vários produtos químicos por drone

Nivelamento de terra guiado por GPS

GPS sulcagem

Plantio e fertilização por meios mecânicos

Amostragem de solo, perfil e mapeamento de produção

GPS land levelling

Mechanical planting and fertilisation

Precision bed formation

Soil sampling, profiling and yield mapping

INFRASTRUCTURE MAINTENANCE | MANUTENÇÃO DE INFRAESTRUTURA Road construction and maintenance Construção e manutenção de estradas

Irrigation and drainage

Road Irrigação building, road maintenance, e drenagem Earthand moving services irrigation drainage canals.

Serviços de movimentação de terras

“We strive to be your large-scale agricultural partners of choice within Africa.”

“Nós nos esforçamos para ser seus parceiros agrícolas de grande escala na África.”

Richard Mac Nicol - General Manager Mozambique

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TONGAAT HULETT The proactive manner in which Tongaat Hulett conducts collaborations with stakeholders serves to create mutual value-added benefit in a developmental manner, helping to overcome the hurdles of the environment in which the company operates.

Priding itself on its status as a partner of both government and society, Tongaat Hulett seeks to

TONGAAT HULETT AT A GLANCE • Four operations in Southern Africa.

• Significant sugarcane facilities.

• A unique land conversion platform.

• A growing animal feeds position.

• Opportunities to further grow ethanol production and electricity generation.

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“WE WORK WITH OUR KEY STAKEHOLDERS TO ACHIEVE OUR MISSION OF BUILDING OUR FUTURE

BY CREATING SUSTAINABLE VALUE FOR ALL OUR STAKEHOLDERS” - TONGAAT HULETT contribute to improving the prospects of a better life by making a positive impact on prevailing socio-economic challenges. Just some of the issues that the company addresses include job creation, security, transformation, urban spatial integration, food security, youth development, infrastructure establishment, attracting fixed investments and inclusive rural development.

Strategic partnerships with key stakeholders are integral to the success of these objectives, creating a ‘win-all’ situation for those impacted by the company’s operations.

PROUDLY AFRICAN With corporate social responsibility (CSR) firmly embedded in Tongaat Hulett’s DNA, the company

demonstrates its awareness of this role by minimising any negative impact and extending philanthropic and charitable inputs to the communities where it operates.

A significant emphasis on local employment and empowerment defines Tongaat Hulett, with 2,297 people currently employed across all four locations during peak sugar milling season.

This extends beyond the landscape of the company itself, since Tongaat Hulett’s operations play an important role in the lives of over 110 million people across sub-Saharan Africa. Following an all-inclusive approach to growth, the company is passionate about creating economic development opportunities, identifying rural development as

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MTFOMBENI INVESTMENTS (PTY) LTD

Specializes in Protective Clothing, Bicycles, Agricultural Supplies, Electrical Engineering, Surveying, Bush Clearing Mtfombeni Investments (Pty) Limited, offers its customers the following products: • Manufacturing and Supply or Provision of the Protective Clothing, • Provision of Electrical (Line) Installation and Maintenance, • Provision and Supply of Restaurant and Grocery products & Services, • Provision of the Building Materials – Hardware, • Provision for leased of the Residential flats or property.

Mtfombeni Investments (Pty) Limited, continues to offer existing products and services to include the following as customers demonstrate interest in supporting the additional of such service.

MTFOMBENI INVESTMENTS (PTY) LTD P.O. BOX 240, MATATA, SWAZILAND TEL +268-23646354 | +268-23646355 | CELL 00268 7802 6707 E-mail mtfombeniinv@swazi.net

www.mtfombeniinv.co.za

increase both quality and yield.

The fruit of all these efforts serves to cement Tongaat Hulett’s position as a developmental partner of choice for governments in the Southern African Development Community (SADC) seeking to further enhance their agricultural sectors. one of the best ways to improve the quality of life for stakeholders.

This is evidenced by Tongaat Hulett’s significant efforts over the years in shaping sub-Saharan Africa’s socio-economic landscape through investing time and resources in partnering with farmers. The company has launched several initiatives dedicated to training small-scale growers, and further supporting growing opportunities with skills transfer, either through in-house training and mentoring programmes, or by providing bursaries for formal training.

Through partnering with local agricultural colleges, Tongaat Hulett further develops the sugarcane

farming skills taught within its programmes, ensuring that they remain relevant and up to date in a progressing realm.

In 2014, Tongaat Hulett conducted a successful partnership with The Job Fund. With a combined joint investment of R305 million, almost 11,000 hectares of sugarcane have been developed, which continues to benefit almost 6,000 people based in Northern KwaZulu-Natal.

In addition, Tongaat Hulett has a dedicated Cane and Rural Development Unit (CRDU), that works specifically with cane suppliers of all sizes – whether small-scale or large commercial farmers – to help them

FUTURE ENDEAVOURS Looking to the years ahead, expansion is top of the agenda for Tongaat Hulett. The company is currently engaged in the construction of a new plant, and in the process of establishing a new refinery for the development of raw sugar. As part of its commitment to local employment opportunities, there is also an ongoing push to recruit a further 3,000 members of staff.

Championing a collective vision and integral approach to developmental growth, Tongaat Hulett will continue to sweeten the socio-economic landscape across SADC. Africa Outlook issue 94 | 7

PRODUCED BY AFRICA OUTLOOK MAGAZINE