Business Overview

overvies-mapOur 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:

Graphics 1

These key sustainability themes (expanded upon throughout this report), are supported by the following elements that shape Rift Valley Corporation.

Governance & Ethics

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.

Human rights

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.

Grievance resolution
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.

Discrimination
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.

Stakeholder Engagement
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.

Markets

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.

Value chain & sustainable sourcing

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.

Scale

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.

Human resources

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
Chipinge Banana 331 19 350
Grupo Madal 404 135 539
Makandi Estates 1 567 34 1 601
Northern Farming 0 17 17
Total Agri-Trading 2 302 205 2 507
Bananas
Matanuska 2 348 79 2 427
Total Bananas 2 348 79 2 427
Energy
Total Bananas 2 348 79 2 427
Energy
Mwenga Hydro 0 11 11
Rural Power Development 0 19 19
Total Energy 30 30
Forestry
Florestas de Niassa (FdN) 248 33 281
Total Forestry 248 33 281
Tea
Mufindi Tea & Coffee 1 566 617 2 138
Rift Valley Tea Solutions 15 17 32
Total Tea 1 581 634 2 215
Tobacco
Northern Tobacco 212 121 333
Total Tobacco 212 121 333
Group
Total Headquarters 0 30 30
GROUP TOTAL 6 691 1 132 7 823

Skills Development
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.

Performance Management
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.

Sustainability chain

Sustainablity-chain

Our core values

overviews-graph

The future

Future_03
Future_06
Future_08
Future_11