SPEAKING POWER TO SUGAR

Speaking power to SUGAR THRIVING SA COMPANIES ARE THOSE WHO’VE SEEN THE FUTURE, AND ACTED UPON IT. ILLOVO SUGAR SA IS ONE SUCH COMPANY. THEY REINVENTED THEMSELVES, DIVERSIFIED THEIR OFFERING, ALL THE WHILE FOSTERING AND SUPPORTING TRANSFORMATION OF THE VITAL SA AGRI-PROCESSING SECTOR, WRITES ANNE SCHAUFFER

Illovo Sugar SA accounts for around independent farmers. Its land redistribution support for the livelihoods of rural farmers, a third of the total sugar industry initiative has resulted in the sale of over their families and local communities, production in South Africa, making half its owned land portfolio – 28 000 is reflective of Illovo’s commitment to it the largest sugar producer in hectares – to mainly black people. This has investment in rural economies. the country. The industry has facilitated the establishment of 55 black Mamongae Mohlare is not only the first undergone seismic challenges in the past commercial growers. In addition, Illovo ever female managing director of Illovo few years, and Illovo’s foresight and ability works with 3 000 out-growers, 2 258 of Sugar SA, but the first black female MD to to diversify, has put it on a solid footing in which are small scale farmers. Importantly, lead a sugar business in the industry. She’s both the domestic and export market. it has provided these growers and farmers very clear: “We set ourselves the goal of

Illovo has not only diversified its product with extensive, hands-on technical, ensuring that everything we do and deliver and service offering. It’s about empowering financial and capacity-building support, today will contribute to economic benefits and investing in people. Today, Illovo with the goal of increasing their yield. of the rural communities.” buys 93% of its sugarcane from local This strong focus on, and massive Illovo has a long history, embedded in

the deep rural areas of KwaZulu-Natal. Illovo Sugar Estate was the forerunner to Illovo Sugar SA, and was founded in the little village of Illovo in 1889. From that day to now, a series of mill acquisitions and establishments was followed by a South African first – the first SA company to operate a refinery. In 2004, one of Illovo’s mills, Gledhow, was sold to Ushukela Milling (Pty) Ltd, a black-owned consortium. This was a milestone, and as Mamongae says, “It was through that, that we contributed to the national goal of creating and developing black industrialists, In order to be sustainable, the industry needs to focus on renewable energyrelated diversification opportunities that will assist in harnessing the full value of sugarcane

giving them significant shareholding and enterprise control, and impacting on job creation and skills development.”

Illovo was formed in 2010, and by 2018, had acquired a Level 1 B-BBEE status.

Around one million people or two percent of South Africa’s population depend on the sugar industry for a living, and direct and indirect employment is estimated at 350 000 jobs. The industry is often referred to as the “invisible economic backbone” of the rural areas in which it operates. It has shoes in infrastructure in areas where cane is grown and processed, and its demand for services and goods supports jobs in towns as well as on-farm. Why is its impact deemed invisible? Because it’s only visible when a mill closes down and cane demand drops.

Illovo has a total workforce of 3 500 people. Of that, 25% are female. The executive team consists of 83% black people, 30% females. Transformation is part of the ethos, and it underpins their business model.

In recent years, the sugar industry »

ABOVE: Mamongae Mohlare is the first ever female managing director of Illovo Sugar SA. TOP: Illovo Development Riders – an initiative to develop community talent. LEFT: Inside the sugar mill at Eston.

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Trading hours of each store may vary due to government regulations at each level of lockdown. revenue has been severely impacted: “The Health Promotion Levy (Sugar Tax), as well as cheap deep sea sugar imports into South Africa, are having a significantly negative impact on industry revenues, including those generated by Illovo,” says Mamongae. “The sugar levy alone took an estimated 250 000 tons of sugar out of the market, translating to a R1,2-billion revenue loss.”

Illovo responded by diversifying, and so remains a strong, viable, profitable business. Its diversified business operations include its downstream businesses in furfural and ethyl alcohol. The opportunities currently being investigated include cogeneration of electricity, production of biofuels, and production of biogas for electricity production. “Little doubt,” says Mamongae, “in order to be sustainable, the industry needs to focus on renewable energy-related diversification opportunities that will assist in harnessing the full value of sugarcane.”

Collaboration and public-private partnerships are considered key to creating prosperity. The handshake between Illovo’s mentorship programme and the SA Government’s Job Fund, is proof of the pudding: “We have been working with the National Treasury on the Jobs Fund initiative which provides capital for a project to develop 3 000 hectares of uncultivated small-scale grower cane land on the KZN South Coast,” explains

We set ourselves the goal of ensuring that everything we do and deliver today will contribute to economic benefits of the rural communities”

Mamongae. “It’s an investment of R63-million.” To date, Illovo has invested o ver R4,2-billion towards supporting small and developing local enterprises.

As MD for Illovo Sugar SA, Mamongae Mohlare is convinced, “Our business represents a workable model for the industry. Equally, investment in downstream diversification offers an opportunity to increase black ownership in the sugarcane value chain.” *

Dombolo DUMPLINGS

TIME TO MAKE 2 HOURS, 15 MINS PREPARATION TIME 1 HOUR 15 MINS COOKING TIME 1 HOUR

THERE’S NOTHING LIKE STEW AND DUMPLINGS TO SATISFY HUNGRY APPETITES ON A WINTER’S NIGHT. AND DOMBOLO DUMPLINGS – A SOUTH AFRICAN BREAD COOKED BY STEAM – ARE A WINNER!

INGREDIENTS:

• 125g cake flour • 125g mealie meal • 1 teaspoon instant dry yeast • 4 tablespoons Illovo Brown Sugar • 1/2 teaspoon salt • 250ml warm water METHOD: In a large bowl, combine cake flour, mealie meal, yeast, Illovo Brown Sugar and salt. Slowly mix in the water until a workable dough has formed, adding more water if necessary. Knead dough for 10 minutes (or until soft and smooth). Place in a lightly oiled bowl or plastic bag and leave in a warm place to rise for 1 hour. Divide dough into small pieces and roll into balls (this recipe makes 8). Place on a lightly greased baking tray. Cover with clean tea towels and leave in a warm place for 10 minutes. To steam the bread, place the dough balls in a lightly oiled plastic bag. Tie the end closed and place on a stand or metal vegetable steamer in a pot. Quarter fill pot with water and place over a medium heat. Steam for about 1 hour, checking and filling the pot with water as necessary. Once ready (a skewer should test clean), remove the bread from the bag and leave on a rack to cool for a few minutes before slicing and serving with your favourite stew.

AN ILLOVO SUGAR AFRICA COMPANY

Growth comes from within

Illovo Sugar South Africa is an invested, long-term contributor to the South African economy and a committed partner to the continuing transformation of the agri-processing sector. In our workforce of 3 500 staff, 25% are female and we have an executive team which consists of 83% black people and 30% are females. We pride ourselves in being actively engaged in and aligned to key national priorities including transformation in the workplace. That’s why we will continue our efforts to make even greater strides towards transformation and driving equity in the workplace.