Strategy

Execution of the strategy is through unlocking value of the four Must Win Battles (MWBs) which have increased from three in the previous year. A key component of sustainable supply is anchored on the business`s ability to generate electricity to fully supply its needs and that of its out-growers.

The outcome and response to that need is the addition of the fourth Must Win Battle: Expand Renewable Energy. Value is further unlocked through the safe well-being of the people, operational efficiencies, and right first-time market supply. The four MWBs of the strategy are summarized below:

VALUE CREATION

Commitment to value creation has required continuous alignment with the evolving needs of the customers and the demand for operational efficiency. The Results Delivery Office (RDO) continues to provide a cross functional platform to ensure value realization.

INVESTMENT IN CORE COMPETENCIES

Investment in operational excellence, including prudent capital allocation to strengthen the balance sheet continues to be put in effect. To ensure commercial capability expansion, the business has commenced the construction of a modern packing and warehousing facility (Project Twazabuka) in line with the MWB of Meeting Domestic and Export Demand Sustainably.

This facility will enable flexible packing for 52 weeks annually, up from the current 36 weeks. In the factory, the Falling Film Evaporator Project aimed at improving overall time efficiency is currently undergoing commissioning.

VALUE THROUGH PEOPLE

People are the most valuable asset. Aligned with the MWB of making Zambia Sugar a Safe and Great Place to Work, employee welfare remains paramount in the value creation process. Current initiatives include talent attraction and retention, refurbishing of employee housing across the estate, and other infrastructure upgrades across the business.

RENEWABLE ENERGY

The business has invested in the development of 13 MW of power expected to come online in the first quarter of the next financial year. As part of our energy diversification strategy, the business is currently in the early stages of assessing the feasibility of an additional 15 MW of renewable power.

VALUE EROSION

The business proactively measures, manages, and addresses value erosion to safeguard its operations. Economic downturns, market fluctuations, and regulatory changes are potential risks which are being mitigated through the focus on creating a safe place to work, effective risk mitigation, and adaptability to changes in the business environment.

FOREIGN CURRENCY EXPOSURE

Currency fluctuations have caused some costs to exceed budget. However, a proactive approach to managing costs denominated in United States Dollars and South African Rands using export proceeds as a hedge, continues to be implemented.

VALUE PRESERVATION

The following are key areas of focus that support efforts to preserve value and mitigate against risks across the value chain:

PRODUCT QUALITY AND COMPLIANCE

The businesss commitment to maintaining high product standards is supported by risk-based quality management and strict compliance. Successful food safety audits and reduced customer complaints reflect Zambia Sugars dedication to meeting both domestic and export demands sustainably.

OPERATIONAL EFFICIENCY

Ensuring projects are delivered on time, within scope and budget, is essential to protecting profitability and enhancing shareholder value.

SAFETY AND ENVIRONMENTAL RESPONSIBILITY

Recognizing the risks of safety and environmental incidents, we prioritize robust Safety, Health, Environment, Risk and Quality (SHERQ) systems and climate resilience measures. These are key to making Zambia Sugar a safe, sustainable, and excellent place to work.

STRATEGY EXECUTION

The Results Delivery Office (RDO) remains core to strategy execution and maintains focus towards Zambia Sugar`s 2030 ambition.