As a creator of wealth and a major employer across the six African countries in which we operate, Illovo plays a significant economic role as it:

• frequently contributes towards empowering emerging markets and supplements local governments’ efforts to provide associated communities with infrastructure, education and health care; and
• creates value by transforming raw materials into products for our many customers, makes substantial payments to the value chain of suppliers, contractors, distributors, customers; to our employees and to governments through direct and indirect taxes, as well as to shareholders and other providers of capital.

The value added statement shows the wealth the company has been able to create through manufacturing, trading and investment and its subsequent distribution and reinvestment in the business.

During the 2012 financial year, R3 154 million was created, which is 17% more than in 2011. Of this amount, R2 567 million was distributed to employees, providers of capital and to governments. Of the wealth created, 51% was paid to employees.

The balance of the wealth created was retained and reinvested in the company for the replacement of assets and the development of operations.