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SOCIO-ECONOMIC PERFORMANCE

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SepHold recognises the role of stakeholders and the responsibility of the group towards those individuals or communities that are affected by the operations of SepCem and Métier. The group regularly engages with groups that can potentially have an impact on the business.

SepHold is poised to be a significant player in the South African construction materials sector. Through its investment in SepCem, the group has completed the largest industrial development project to be undertaken in the North West Province and one of the largest in Mpumalanga. These represent a significant investment in the South African economy and the renewal of the cement industry, which is critical to infrastructure development.

SepHold actively evaluates the group’s engagement programmes and encourages a deliberate, consistent and systematic approach to dealing with all stakeholders. SepHold owes its existence to its founding stakeholders, who conceptualised and mobilised resources, and contributed financial, human and other capital to establish the company.

The successful existence of the group requires the continued cooperation and support of all its stakeholders. It is therefore critically important that stakeholders have trust and confidence in the group.

MÉTIER

The acquisition of 100% of the issued capital of Métier with effect from 28 February 2013, offers SepHold a broader revenue base in the construction materials market and immediate benefit of cash flows.

Community engagement

The needs that exist in many communities in South Africa present a daunting challenge and to this end, the company’s initiatives are aimed at achieving and sustaining positive social development and upliftment of the communities it operates in. Métier realises that the biggest contribution it can make in breaking the poverty cycle is to invest in the education and support of our nation’s children. In response to the communities’ needs, Métier has demonstrated commitment through relevant and sustainable community engagement activities with a focus on educational initiatives and early development projects. The company’s charitable donations have been aimed at building schools, crèches and orphan villages.

Human capital

Métier plans to retain its key employees by focusing on succession and career planning that places emphasis on personal growth and leadership development. To ensure that it has the necessary skills required to support growth, Métier has put in place a review process that facilitates performance discussions and for the identification of the employees’ training requirements bi-annually.

Métier continues to partner with accredited training providers in specialised fields for employees that have been targeted for development and promotion.

Métier has also been involved in initiatives such as the development of teachers and entrepreneurial development programmes.

In the past few years, Métier has contributed funds and or its products to various projects within the greater KwaZulu-Natal area. The key area of sponsorship has been around housing, education and childcare, where most of the recipients are orphans. Métier contributed to the building of homes at the Ingane Yami Children’s Village for orphans and abandoned children and has historically supported the Ingane Yami Village, LIV Village and The Domino Foundation.

SEPCEM

Community engagement

SepCem has adopted a policy that is aligned with international best practice in relation to resettlement and compensation. By working in partnership with communities, SepCem can develop an understanding of the potential impact its operations may have on adjacent communities, and how to manage the short-term and long-term risks. This strategy is supported by a number of management systems dealing with impact assessment, community engagement processes and social investment. The main objective for engagement is to develop a mutually beneficial relationship that will enable SepCem to appropriately deliver on the community expectations while achieving its strategic objectives. The two main community expectations identified have been SepCem’s provision of employment opportunities and support for enterprise development initiatives.

Human capital

At SepCem there is commitment from all levels of employees to translate strategy into measurable outcomes. An innovative feedback process of continuous performance improvement through transparent communication is in place to enhance employee participation. SepCem’s executive management recognises the need to engage with the employees at all levels and has adopted the Sephaku Communication Meeting forums (SEPCOMS) as a platform to discuss the operational, human and structural issues in a focused manner in order to enhance the execution of strategic objectives. It is through this approach that SepCem management creates the opportunity to discuss the right things, involving the right people, at the right time and frequency and in the right way to achieve sustainable business excellence. This methodology has proven to be effective in improving business performance through promoting operational and service excellence. SepCem also recognises the importance of linking employee health and wellness to company needs and strategic priorities. It is therefore a condition of all employees to be on a medical aid scheme and the operational sites have clinics that support employees with occupational health requirements. Employees are encouraged to do medical health assessment annually especially during SepCem’s wellness day.

This extensive employee engagement enhances SepCem’s competitiveness in its ability to attract the requisite skills to sustain the value creation process. The company’s expenditure targets for training and development over the next four years are approximately 3% of the annual payroll.

SepCem’s skills development programme includes learnerships, internships and mentorships. Portable skills training for workplace qualifications such as mobile operators and engineering skills have been implemented and complemented by the availability of bursary schemes to support talented individuals with their tertiary level studies.

Enterprise and Supplier development programme

SepCem has identified job creation and supporting the development of small, medium and micro enterprises (SMMEs) as important factors in the sustainability of the local economy and community development strategy. To this end SepCem has developed the Enterprise and Supplier Development programme aimed at mentoring emerging enterprises located in areas it operates in. SepCem provides business opportunities and training to SMMEs through the provision of financial and logistical management support. The programme encompasses entrepreneurship development initiatives that range from the registration of the enterprises to providing basic business management skills through training, mentoring and coaching. Through this programme, community members effectively create jobs through establishing SMMEs, thereby contributing to the empowerment and alleviation of poverty.

SEPCEM CASE STUDIES

CLEANING SERVICES

The cleaning of the cement plants is an essential component of the overall health and safety management process at the operations. The identification and selection of qualifying SMMEs is a rigorous process to ensure that the deserving enterprises are chosen for the programme. SepCem believes that its contribution to these entities will create jobs, develop entrepreneurs and sustain the local economy.

Bodibeng Trading Proprietary Limited
Mancamane Trading Enterprise
MM&JK Cleaning Projects Proprietary Limited

CATERING SERVICES

Millicent’s Enterprise

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Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.

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Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.

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MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.

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Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.

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