Page 146 - KZN Top Business Portfolio 2018

ILLOVO SUGAR (SOUTH AFRICA)
PROPRIETARY LIMITED

www.illovosugar.com

AN IMPORTANT SOCIETAL ROLE R871 million and during the period, the company
continued to reinvest in the business spending
Illovo Sugar South Africa (Pty) Ltd (Illovo SA) is R550 million on capital investments. Total direct tax paid
South Africa’s largest sugar producer, accounting by the company in 2016/17 amounted to R82.5 million,
for about 30% of the country’s sugar production, while indirect taxes totalling R174.2 million were
and is a significant contributor to South Africa’s collected on behalf of the government.
economy. The company plays an important societal
role, supporting direct and indirect employment in Employers and Outgrowers
rural areas through its value chain, providing financial Illovo is estimated to support at least 25 330 jobs
support, technical assistance and capacity building to in South Africa. For each of Illovo’s 3 500 direct
smallholder farmers, and supporting the South African employees in South Africa (including Illovo SA and
government’s development and land reform agenda. Illovo’s corporate offices based in Durban), at least six
Illovo SA is also a producer of renewable energy and jobs are supported through outgrower communities
continues to reduce its environmental impact. and wider multiplier effects throughout the economy.
The direct jobs provided by the company contribute
During the 2016/17 financial year, the company’s total to supporting the livelihoods of 13 292 people once
economic impact on the local economy has been families and dependants are taken into account. This
estimated at R9.6 billion, comprising R1.4 billion in is based on an average household size of 3.8 people
direct impacts with the balance resulting from the in KwaZulu-Natal.
multiplier effects of its business operations within
the supply chain and wider economy. This impact Illovo SA’s supply chain includes nearly 3000
is revealed in a report undertaken by Corporate outgrower farmers, in total supplying between 4 and
Citizenship, an independent, global management 5.5 million tonnes of sugar cane every year. Illovo
consultancy specialising in social impact assessment, SA is estimated to support over 17 600 jobs through
sustainability and corporate responsibility. outgrower farmers. In addition, the company provides
significant technical, financial and capacity-building
Mamongae Mahlare, MD of Illovo SA says, “As a support to outgrowers, worth R 5.3 million in 2016/17.
business, we endeavour at all times to deliver on our
shared value mandate, while actively supporting the Illovo SA’s community investments totalled R 0.8 million
government’s social and economic development in 2016/17. The majority of this money is spent on
agenda. We are committed to the transformation capacity building projects and support for education,
of our business in South Africa, but recognise that but includes healthcare and infrastructure among other
to keep ourselves focused and on track, we need an investments. Illovo SA also contributes to industry-
independent benchmark against which to measure level initiatives on community development through its
our real contribution. The last report was completed contribution to the South African Sugar Association’s
in 2012/13 and we have assessed our progress education and development programmes.
against this to ensure we identify gaps – or areas All employees and their families can access healthcare
of improvement – early as well as take the time to services though Illovo SA clinics and medical aid
celebrate achievements.”
benefits. Furthermore, Illovo SA seeks to actively
For example, spending on local suppliers increased 20% address HIV in the region through a wellness
to reach R4.2 billion, payments to employees in the form programme, with over 400 people currently enrolled,
of salaries, benefits and wages increased by 49% to targeting those who are HIV positive.
144