Stakeholder engagement

Afrox operates in an environment that is inextricably linked to our stakeholders. We strive to be cognisant of these relationships in all our activities, acting with integrity, honesty and equality at all times. This is based on the understanding that our decisions and activities may have an impact on the stakeholders and environment in which we operate.

Stakeholder groupings

We classify stakeholders according to the following groupings:

  1. Shareholders, lenders and market analysts are key as they provide financial capital.
  2. Customers – meeting and exceeding customer requirements are key to our future sustainability.
  3. Business partners form part of the driving force behind the development and delivery of products, technologies and support services we provide.
  4. Employees are key to our ability to provide product offerings and customer-specific solutions.
  5. Trade unions support our employees.
  6. Government and regulators provide Afrox’s legal licence to operate and regulate pricing of LPG.
  7. Communities and non-governmental organisations (NGOs) provide Afrox’s social licence to operate.

Stakeholder mapping

Afrox takes the legitimate needs and concerns of stakeholders into account when considering our value creation process. We mapped our stakeholders according to these concerns, with a corresponding response through our material matters. We achieved this by applying a process that assessed stakeholder concerns and expectations, and grouped these into categories of similar nature before refining them to create a list of material concerns.

Material concern

Affected stakeholders

Response through related
material matters

Stakeholder engagement methods

Future sustainability and growth
  • Shareholders, lenders and market analysts
  • Customers
  • Business partners
  • Employees
  • Trade unions
  • Government and regulators
  • Communities and NGOs

1 to 10

  • Formal results presentations
  • Email communications from executives
Financial results, including total shareholder return, HEPS and cash generation
  • Shareholders, lenders and market analysts
1 to 10
  • SENS announcements
  • Integrated report
  • Annual financial statements
Transformation, BBBEE compliance and the impact of the new BBBEE Codes
  • Shareholders, lenders and market analysts
  • Customers
  • Business partners
  • Employees
  • Trade unions
  • Government and regulators
7 and 9
  • Ongoing interactions with shareholders, lenders and market analysts
  • Direct contact/community meetings and correspondence with communities
Safety for employees, contractors and customers
  • Customers
  • Employees
  • Trade unions
  • Communities and NGOs
8
  • Internal newsletters and publications, and a DVD news programme
  • One-on-one meetings
Employment security, fair pay, incentive structures and employee development
  • Employees
  • Trade unions
6
  • Specialist media publications
  • Quarterly meetings with trade unions
Transparency, appropriate information and effective communication
  • Shareholders, lenders and market analysts
  • Customers
  • Business partners
  • Employees
  • Trade unions
  • Government and regulators
  • Communities and NGOs
1 to 4
  • Customer surveys
  • Direct contact with our current and prospective customers
Innovation and product development
  • Customers
  • Business partners
3, 4 and 10
  • Monthly site shop steward meetings and regular shop floor talks
  • Afrox’s website, electronic product brochures, product manuals and CDs
Customer value creation, service levels and the level of pricing/price increases
  • Customers
  • Business partners
4 and 10
  • Annual rating agency assessment of creditworthiness
  • Supplementary media releases covering internal developments

Legend

No Material matter No Material matter
1 Persistent low demand leading to a lack of growth in the mining, iron, steel and general fabrication sectors in the South African market 6 Attracting, developing and retaining talent
2 South African economic environment 7 Transformation including BBBEE and employment equity
3 Emerging Africa* growth 8 Safety performance and culture
4 Customer value creation 9 Government regulation
5 Supply chain reliability, efficiency and cost base 10 Competition challenges
* Emerging Africa is defined as all of Afrox’s operations excluding South Africa, Lesotho and Swaziland.

Customer-centric go-to-market model

Competitive pressure is increasing and the market growth in South Africa, Afrox’s largest geography, will remain subdued and possibly negative. Our ability to combine offers for LPG, Hard Goods and industrial gases will continue to provide customers with value-added integrated offers.

Afrox revised its sales and marketing function during the restructure and instilled a focus on customer-driven solutions and excellent service. We have specialist teams in place to offer bespoke solutions according to customer segments, regardless of geographical location.

Large customers

Provide 80% of Afrox’s revenue and are subdivided according to sectors such as food and beverage, energy and fabrication. Each sector has a dedicated team.

Special markets

Growth markets such as hospitality, refrigerants, propellant and helium customers.

Bulk gases process industries

Customers that traditionally use bulk gases in a manufacturing process receive process solutions and unique product package options.

Light industries and retail

More than 70% of our customer base falls into this category. These customers are not classified as ‘large customers’ and spend R500 000 or less on Afrox products annually.


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