Our operational business footprint is established
within three countries in East and Southern Africa: Tanzania,
Mozambique and Zimbabwe. Whilst
agriculture remains our dominant business sector, Rift
Valley Energy continues to grow at an exciting pace. As a
result of our operations - the electrification of remote
communities, growing crops and trees to considerable
scale, contracting out-growers and trading agricultural
commodities - Rift Valley's social and environmental
footprint has become significant in the region.
With socio-economic impact on over 200,000
people and with owned or concessionary
landholdings of close to 300,000Ha, we focus our
sustainability agenda on five development themes:
These key sustainability themes (expanded upon throughout this report), are supported by the following elements that shape Rift Valley Corporation.
A strong culture of ethical business is entrenched within all Rift Valley operations. A detailed and comprehensive set of policies cover staffing, ethics and operating procedures, compiled in an employee handbook and made available all employees.
Overseeing Group operations is the RVC Board, made up of shareholders and non-executive directors. Additional Committees exist separately to administer Compensation and Benefits, Internal Audit and Sustainability. Individual businesses are further governed by specific awards and committees.
Health and Safety
There has been neither fatality nor serious injury throughout Rift Valley operations in 2015 and strong SHE policies and procedures accompany management to maintain these standards.
The mechanism for grievance resolution currently varies within each business operation andvcircumstance. With the introduction of the newly drafted ESMS (Environmental and Social Management System), we will be able to determine if gaps exist in this area and thereafter ensure that both internal and external grievances have an appropriate method of review and resolution.
All operations adhere to ILO (International Labour Organization) C100 and C111 conventions. It is worth noting that some operations provide particular opportunity for women's employment (for example tea and fruit picking/packing and forestry development).
Preventing child labour
Rift Valley businesses include large-scale agricultural operations as well as the contracting of family-run, small-scale farming enterprises. We are aware the latter can traditionally include family youth as labour, we are nonetheless confident that all operations adhere to ILO C138 and C182 conventions.
The mapping of, and engagement with, stakeholders of each Rift Valley operation is a process planned as a consequence of both the ESMS (Environmental and Social Management System) and BROA (Biodiversity Risk and Opportunities Assessment). These tools have been developed and rolled out within operations in 2015. Where there is a weakness in identification or engagement, it is believed that improvement in these management systems will allow for optimum liaison with stakeholders Group-wide.
Indigenous peoples’ rights
Where land is owned or operated at any scale in Africa, we are aware that issues of land use and productivity, tenure and rights to resources can conflict with local communities. In the case of our own business footprint, Rift Valley operations have bearing on local community rights most notably with the expansion of Rift Valley Forestry (RVF), our green-field forestry business in Mozambique. In this instance, the ability to expand to desired scale requires rigorous community consultation, led by a community liaison officer tasked specifically to undertake the process. This consultation takes into account a range of dynamics and rights and ensures that any expansion of RVF plantations is entirely equitable.
The development of Rift Valley businesses is founded on the understanding that the demand for efficient agriculture and clean, reliable energy will continue to grow. The dynamics of population growth, climate change and sustainable land use drive the necessity for ever more efficient and productive operations to meet these demands. Africa's expanding middle class will continue to create markets for high-quality farm produce and timber, whilst export markets are looking to Africa for specific quality of tobacco, tea, and the likes of bananas and avocados to complement global seasonal demands.
Even though Rift Valley's agricultural businesses are made up of a diverse portfolio of products and inputs, there has been an evolution of purpose over the last eighteen months to centralise and optimise procurement as a group where possible. The appointment of a Group Supply Chain Manager in 2014 has enabled this process to gain momentum and led to the drafting of a group-wide Procurement Policy to cover the principles of sourcing, supply chain transparency, mutual benefit and sustainability. This policy is due to be completed and distributed for ongoing adoption within operations in 2016.
In 2015 RVC achieved revenues of $192 million. In terms of desired scale, whilst tobacco operations remain consistent in scale, our Forestry, Tea, General Agriculture, Trading and Energy platforms are poised for significant growth over the next years.
Employment and labour.
Africa has the fastest population growth in the world. More than half of global population growth foreseen between now and 2050 is expected within Africa, where it looks to continue at a pace of 2.55% annually. As a consequence, Africa has the youngest population in the world with some 200 Million people aged 15 to 24. Within this context, employment and job creation will have a massive influence on the continent's development and the contribution of the private sector remains crucial. Rift Valley therefore plays a valuable role in the provision of jobs and small business development throughout its footprint. More details of this specific impact can found within the Impact Review on page 16.
RVC's direct employment fluctuates around 7,500 jobs, distributed as follows within operations:
|Platform & Business Units||Wage||Salary||Total|
|Agriculture & Trading|
|Makandi Estates||1 567||34||1 601|
|Total Agri-Trading||2 302||205||2 507|
|Matanuska||2 348||79||2 427|
|Total Bananas||2 348||79||2 427|
|Total Bananas||2 348||79||2 427|
|Rural Power Development||0||19||19|
|Florestas de Niassa (FdN)||248||33||281|
|Mufindi Tea & Coffee||1 566||617||2 138|
|Rift Valley Tea Solutions||15||17||32|
|Total Tea||1 581||634||2 215|
|GROUP TOTAL||6 691||1 132||7 823|
RVC operations rely on both skilled staffing and productive out-growers. In both instances, training and skills development continue throughout the Group. The scale and impact of this development is covered within the Impact Report 'Education, Entrepreneurship and Skills development' on page 20.
Identification, measurement and incentivizing of individually agreed performance objectives for each professional and managerial employee have been developed throughout the Group. The Group HR Director reports to the Group CEO and Board Compensation Committee on the progress made in the implementation of performance management, including the efficacy of performance-based annual pay reviews. The process helps managers and supervisors achieve a fairer and more objective method of rewarding good performance.