NOURISHING PEOPLE

We understand the responsibility that comes with being a large corporate citizen and we constantly strive to be a force for positive change in the communities in which we operate. Our Passion to "provide more food to more people, more often” is the driving sentiment behind our focus on food security, both in our everyday business and in our new Corporate Social Investment (CSI) policy. This policy targets

food security and community development as core areas in which we can make a significant impact. Not all of our current CSI projects are strategic and sustainable in terms of this vision, and plans are under way to exit many of these in order to focus on priority communities where we undertake bigger, more impactful projects. Nevertheless, our current projects are making a difference and we are proud of the work that is being done. A selection of these initiatives is presented below.


HISTORY OF CSI


AUGUST 2014
New RCL Foods Group CSI Policy
 
Both these
acquisitions
focus on
communities
around their
operations
– consistent
with Group
CSI Strategy
JANUARY 2014
Acquired TSB Sugar
MAY 2013
Acquired Foodcorp

ACQUIRED FOODCORP
Formal CSI Strategy created for the Group (Rainbow and Vector)

Focus on communities in/ around where we operate

Fewer projects, greater impact with focus on education, skills development and arts
   

PRIOR TO FEBRUARY 2009
No formal CSI Strategy

Ad hoc donations and projects

Rainbow Group did CSI work in communities around plants

   
      
      MOVE TOWARDS STRATEGIC SCI

       
  Rainbow and TSB Star Schools (education)  
  RCL Foods Catalina Theatre (arts)  
  TSB Selati Cup (youth)  
  Vector and Rainbow Foodbank (food security)  
  RCL Foods TOUCH programme (employee involvement)  
  Foodcorp SCARC (youth)  
       


FOOD SECURITY

Food security includes the availability of food, access to food and knowledge regarding food use. Many of our current CSI projects tackle all three of these areas.

Supporting contract growers
Rainbow supports contract growers who rear chicken on our behalf using their own farm and facilities. Rainbow supplies day-old chicks, feed and in some cases the transfer of skills, while the growers are managed and mentored against Rainbow standards and operating practices.

TSB supports over 1 600 small-scale growers in order to secure sustainable cane production and to enhance social cohesion.

Establishing community self-sufficiency
In February 2015, TSB opened the Marula Plant Nursery in Malalane. This is an extension of the existing Marula Fresh Produce Market which TSB established with TRAC in 2012, and through which traders were taught how to grow their own produce in order to become self-sufficient.

Rainbow built a chicken house for the Ikusasa Le-Africa Foundation and supplied chicks, feed, vaccines, chemicals, training, maintenance and consulting time to the Foundation in order for them to teach the community how to grow chicken.

Food donations
Rainbow supports a number of organisations with their monthly chicken requirements and also donates close-toexpired stock to NPOs near its operations. During 2015 we donated over 60 tons of chicken, providing over 350 000 meals.

Foodcorp also supports a number of organisations through food product donations.

COMMUNITY DEVELOPMENT

We aim to become a strong participant and catalyst in community development within the communities that depend on our operations, with an emphasis on identified priority areas. The model for this development is a multipartner collaborative approach which includes government departments, municipalities, businesses, NGOs and NPOs. In this approach we will play the part of a catalyst in strengthening current forums, supporting existing projects and driving a number of new potential projects and partnerships. Our Sugar & Milling division's approach to land reform is a successful example of this kind of initiative and is described in detail below to illustrate the potential of the model for other areas of our business and CSI.

Case study: Sugar & Milling (TSB) land reform
Land reform has made a significant impact on communities supplying cane to the TSB mills. TSB has seen land reform as an opportunity to begin working more closely with government and communities, thereby contributing toward wealth creation, job opportunities and poverty alleviation within communities. As a development partner, TSB remains committed to building stronger relationships with both government and land reform beneficiaries to ensure a sustainable sugar industry.

Joint ventures
Since 2008, TSB has sold off the majority of its agricultural land and formed three joint ventures (JVs) with local communities, These JVs are 50/50 companies that lease land and infrastructure from the communities. The first two were established in 2008 and the third in 2012. The JV model has been designed to ensure that maximum benefit is received by the community through:

  • Rental income;
  • Dividends;
  • Employment;
  • Enterprise development and procurement spend; and
  • Bursaries and training.

The model is set up in such a way that the majority of the benefit is through rental income, thereby guaranteeing annual payments to communities. JV partnerships have also resulted in beneficiaries being able to set up businesses supplying services to JV companies, and TSB aims to grow both its number of beneficiary enterprises and procurement spend.

LAND RESTITUTION BENEFICIARIES HAVE RECEIVED THE FOLLOWING BENEFITS TO DATE THROUGH THEIR JV PARTNERSHIP WITH TSB:
Beneficiary Enterprise Development 24 companies awarded contracts
Beneficiary procurement spend (2012/13 and 2013/14) R128,4 million
Lease payments R150,6 million
Dividends R12,3 million
Direct employment 253 jobs
Beneficiary bursaries 17
Internships 11
Training mentorships for 368 farmers

The JV companies operate an area under cane of 9 076 hectares and delivered 988 516 tons of cane during the 2014/15 season. Banana and litchi production is taking place on 309 hectares, bringing the total crop area to 9 385 hectares.

Land reform, especially restitution, has had a significant impact on land ownership patterns in TSB's cane supply areas, and approximately 70% of the cane supplied to the Nkomazi mill in Mpumalanga is grown on land owned by communities. TSB aims to grow the number of farmers involved in the programme and increase procurement spend over the coming years.

TSB, growers and communities have established innovative partnerships to support land reform efforts. Partnerships with government and parastatals have also made a significant contribution toward the long-term sustainability of land reform and cane supply. As a result of these successful partnerships, nearly 92% of all land reform farms in Nkomazi are productive and delivering cane to the mills.

Recapitalisation and Development Programme (“RADP”)
TSB has been appointed as a strategic partner and mentor by the Department of Rural Development and Land Reform (“DRDLR”) to assist with skills transfer to land reform beneficiaries under the RADP. To date 368 growers have been trained. Two attended a Junior Certificate Course and 211 are receiving practical training provided by Shukela Training Centre. Where growers have formed co-operatives, emphasis has also been placed on governance training, with 101 co-operative members receiving general governance training and 34 co-operative directors receiving directors' governance training. A further 20 growers have been on conflict resolution training.

TSB has also established a Land Reform Unit to support land reform initiatives by providing mentorship, project management and social facilitation services free of charge. To date the DRDLR has approved nearly R200,0 million in grant funding to support Proactive Land Acquisition Strategy (“PLAS”) projects and small-scale growers. Approximately R110,0 million of this funding will be spent on rehabilitating small-scale grower irrigation schemes on communal land in line with the National Development Plan. This initiative should result in small-scale production increasing by approximately 350 000 tons of cane, resulting in additional revenue of R140,0 million on an annual basis to small-scale growers. It is anticipated that over 1 000 additional permanent and seasonal jobs will be created.

In order to support this initiative, TSB and the small-scale growers have established a one-stop-shop services company called TSGRO. In setting up the company, small-scale grower leadership was instrumental in enabling it to address the challenges faced by small growers. Apart from focusing on improving farm productivity, TSGRO will also be setting up enterprise development opportunities for small-scale growers to become contractors. TSB provides annual funding of R9,0 million to support TSGRO.

Youth development
TSB has placed much emphasis on youth development. Bursaries have been made available to land reform beneficiaries and a structured programme of bringing in graduates for practical experience has been implemented.

Empowering beneficiaries to become senior managers within the JVs is also critical. JVs have to date awarded 17 bursaries to beneficiaries, totalling R1,3 million. Most recent bursaries focus on engineering and accounting degrees.

Akwandze Agricultural Finance (“Akwandze”)
Akwandze is a joint venture company between Nkomazi small-scale growers and TSB, which provides credit to small-scale growers and land reform projects. Akwandze was set up with R25,0 million capital provided by growers and TSB, and a R10,0 million donation from the South African Sugar Association (“SASA”). The company has managed to leverage a number of different funds to support land reform and small-scale farmers. Akwandze manages the following funds:

  • Khula/Akwandze Fund – R100,0 million available forsmall-scale growers. R75,0 million commitment fromKhula.
  • Land Bank Fund – R150,0 million available as a rollingfund for lending to restitution projects. To dateR145,0 million has been made available.
  • MAFISA Fund – R25,0 million for small-scale growers.
  • Jobs Fund – R50,0 million grant funding for rehabilitationof small-scale grower infrastructure.

Community mobilisation
Government has identified the Nkomazi district, where Malalane is situated, as being particularly poor and under-resourced. Government statistics indicate that many young children in Nkomazi do not grow up with a strong foundation in the early years. Many do not have birth certificates, many do not access government health services or have a Child Support Grant, many are not fed nutritious food, and the vast majority are not stimulated through play and early learning opportunities to ensure their success in school and in life. We are currently working with experts in the ECD field, NGOs and the Department of Social Development, amongst other role players, to identify what we as the major employer in this area can do to assist the community to overcome these issues.

In Hammarsdale in KwaZulu-Natal, we are working very closely with the LIMA Rural Development Foundation in order to identify a community project to be established in Hammarsdale. We have already had extensive engagements with community leaders, municipalities and local businesses, along with community workshops and extensive investigations into the Hammarsdale community. Together with local inhabitants, we will undertake a project that assists the Hammarsdale community to overcome the most pressing needs of the poor.

Education projects
In partnership with the non-profit organisation Star Schools, to date we have assisted 500 underprivileged Grade 11 and 12 learners by providing access to extra lessons in Maths, Science and English. The impact of the project can be seen in the results of the 2014 Grade 12s:

  • 100% pass rate on all four sites (Rustenburg, Malalane,Worcester and Hammarsdale)
  • 76% achieved Bachelor's passes (qualifying for universityadmission)
  • 44 distinctions were achieved amongst 164 candidates
  • 100% pass rate in Maths and Science on three out of foursites.

In addition to this group-level initiative, TSB supports 10 Eco-Schools (a school environmental development programme that helps schools build their capacity to respond to environmental issues) and the Penreach Project (run by a private college with a developmental arm that reaches out to poorer schools).


Staff and community parenting programme in Worcester

The Positive Parenting Programme was developed to help improve parent-child interactions in households within the community of Worcester, an area affected by social problems such as drugs, alcoholism and gangsterism. With an emphasis on “learning through play”, the programme focuses on offering information and practical skills to parents of young children, to Early Childhood Development (ECD) leaders and the local Department of Social Development. Over 200 of our staff enrolled in the six-month course and 40 ECD sites from the Worcester community have also signed up for the programme, impacting over 2 000 children in the area.

Sports and recreational projects
Foodcorp's Yum Yum brand sponsors the Soweto Canoe and Recreation Club (SCARC), which uses water sports as a way of engaging with and providing development opportunities for underprivileged youth in Soweto. The SCARC team performed exceptionally well this year in races such as the Dusi Canoe Marathon, the SA Sprints and the South African Sprint Canoeing Championships.

TSB promotes local community upliftment through its annual soccer tournament, the TSB Selati Cup. The Selati Cup has become a visible sign of what can be achieved in areas where there are few facilities, and it has attracted the interest of other sponsors who fund infrastructure and youth development programmes around this initiative.

In KwaZulu-Natal, Rainbow supports the Amazulu Football Trust, which targets schools where Hammarsdale Star Schools learners come from, teaching them both soccer and life skills.

Arts projects
Rainbow supports the annual Young Performers musical production, which gives high school learners the opportunity to experience working with professional directors and musicians.

Employee involvement projects
We sponsor a number of employee involvement projects to encourage our people to make a difference in their local communities. These include:

  • a monthly salary deduction scheme which gives all employees an opportunity to support deserving institutions such as theSPCA, Hospice, Reach for a Dream and Childline
  • a TOUCH (Together Our United Contributions Help) internalprogramme that supports any employee who assists acharity or organisation by giving the charity a donation offood and allowing the employee time off to spend with thecharity. Through the TOUCH programme, we have indirectlysupported a number of deserving organisations through ouremployees.

Other projects
RCL FOODS supports LIV Village and Vukukhanye on a monthly basis with their running costs, and our BEE partner, Ikamva Labantu, supports many community projects in and around Cape Town.