Infrastructure Development

Afric Oil is committed to the development and expansion of the fuel distribution industry in South Africa, particularly where this will benefit smaller players. To achieve this, we are committed making investments developing storage and transport infrastructure because the existing infrastructure is generally not accessible to the emerging players. In this regard, we are very keen to enter into collaborative arrangements with independent players in the arena in order to meet our respective objectives.

Environment

As a fuel distribution company, we at Afric Oil are particularly concerned with safeguarding the planet for future generations. We work closely with our customers, suppliers and end users to provide education on how fuel efficiency can reduce an organisation’s or an individual’s carbon footprint. For this reason, we provide our customers with automated fuel management software that tracks fuel consumption right down to the level of each vehicle. It automates the ordering process, but it also makes it possible to realise efficiencies in the organisation’s operations. We are committed to educating our clients on fuel efficiency. Participation in formulation of Regulatory Framework Afric Oil supports government initiatives aimed at achieving higher standards for clean fuels. We also work closely with government in terms of the broader regulation of the whole industry, by participating in national forums, and providing inputs on draft regulations/legislation which are occasionally released by government for public comment.

Social Initiatives

Our Commitment to Corporate Social Investment. In 2012, Afric Oil established a BEE committee to oversee the distribution of funds to identified charitable organisations. We have set ourselves aggressive annual targets to support charitable causes which commitment we intend to honour.

BEE Initiatives

BEE – Enterprise Development. Afric Oil has benefited from the support of market leaders in the fuel industry. Now that we are independently successful, we are committed to extending our helping hand to smaller players in the market. We have in place an enterprise development programme that supports aspirant distributors in the geographic locations in which we distribute to work in partnership with Afric Oil to service their local markets. This support takes the form of credit facilities and extended payment terms, without which it is difficult to enter the extremely competitive oil and gas market. We are constantly on the lookout for new enterprise development opportunities that are relevant to our market, industry and expertise to broaden the impact that we can have in this critical area of economic empowerment. Our focus is on creating multiple successful black oil distribution entities as part of our commitment to job creation.

Governance

The company has made an ongoing progress in relation to establishing and implementing business processes, organisational controls and governance practices. The focus on sound corporate governance principles is of great importance to underpin the sustainable success of the company. The company has employed corporate governance processes and internal controls for its business activities. The company also benefited from the group’s enterprise risk management processes, as well as the secretarial and internal audit services. The board provides effective oversight on the activities and operations of the company. Two sub-committees of the board, namely; Audit and Risk, and Remuneration are in place. The Board and its sub-committees meet at least 4 times a year.

Codes And Regulations

Liquid Fuels Charter

The Liquid Fuels Charter, signed by the industry in 2000, aims to ensure the sustainable presence, ownership and control by approximately 25% of historically disadvantaged South Africans across the industry value chain by 2010. As the first industry to sign such a charter, SAPIA members prioritised the critical need to correct the imbalances of the past, long before the Broad-Based Black Economic Empowerment Act of 2003 was enacted.

Effective ownership of enterprises by black people
Encourages the sharing of equity and voting rights with black people and black women
Effective control of enterprises by black people Encourages senior black decision making at executive board and senior top management levels
Equity in the workplace
Encourages companies to identify and recruit black people at professional. middle and lower management positions
Development of competence of black employees Encourages companies to develop talent of black people through the development spend on learning programmes, learnerships and overseas placement
Procurement of goods and services from strong B-BBEE recognition level suppliers
Encourages procurement from BEE compliant companies. Encourages spend on small and micro-enterprises, >50% black owned companies and >30% black women owned companies
Assist and accelerate the development and sustainability of other enterprises. Encourages development or expansion of black small, medium enterprises particularly along the value chain
Promote access to the economy for black people Encourages initiatives intended to directly provide black people with the means of generating income for themselves
Create an enabling environment for transformation Encourages companies to appoint managers who will understand the spirit and background of the charter to create a supportive and enabling environment for business success and drive a process of transformation and a change of culture.