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.
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.
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.
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.
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.