• Human capital report
• Socio-economic impact report
• Climate change report
• Corporate governance report
• Social and Ethics Committee report
• Remuneration report
• Risk management report

Socio-economic impact report

As Africa’s largest sugar producer, with agricultural and manufacturing operations in six countries in Africa, certain of which rank as the world’s least developed countries and face considerable challenges in the form of poverty, unemployment, inequality and disease, Illovo is conscious of the social and economic obligations associated with an organisation of its size, particularly given the rural location of its operations and the challenges faced by communities in rural areas.

One of the key pillars of Illovo’s Strategic Intent and sustainability model is to be welcomed in the communities in which we operate, without whose co-operation we would not be able to sustain our businesses. Recognising that the prosperity and sustainability of our business is intertwined with the well-being and advancement of these communities, Illovo creates valuable jobs and economic opportunities in these rural communities, helping to preserve the long-term sustainability and competitiveness of the wider sugar industry in the region, as well as providing various essential health and welfare services (as more fully detailed in the Human capital report).

The group impacts a wide range of stakeholders in its local communities and wider national economies, through three main channels:

• Direct impacts, through Illovo’s direct employment of workers on farms and in factories, as well as investments, tax payments, interest spending, shareholder distributions and other payments. The provision of direct and indirect employment in areas where very few other opportunities exist increases the economic security of people in rural areas, helping preserve rural communities in countries where rural to urban migration is often high.
• Indirect impacts in the value chain in Africa, through purchasing sugar cane from farmers, payments to suppliers and distributors, as well as impacts on those selling Illovo products or using them in their businesses. In addition to the positive contribution it makes through its in-country local procurement practices (and, in South Africa through preferential procurement (in accordance with the country’s broad-based black economic empowerment (B-BBEE) codes)), the re-spending of the money received from Illovo generates further economic activity and employment.
• Induced impacts, through spending by direct and indirect employees of Illovo, leading to increased consumption and employment elsewhere in the economy.

Illovo’s total economic impact in southern Africa, including direct, indirect and induced impacts on GDP in all six countries, is estimated at about R18.5 billion, as illustrated further on.

Our Value-added Statement and our Five-year Review of financial performance and statistics, provide further information on the considerable positive economic impact that our operations have on the socio-economic development of the regions in which we operate and the wealth we create through manufacturing, trading and investment and its subsequent distributions to shareholders and reinvestment in the business.

Illovo strives to make a positive impact and eliminate, or at least minimise negative impacts on the communities in which we operate. Recognising that failure to respect internationally recognised human rights principles presents a significant reputational risk, affecting the sustainability of a business, our risk identification processes identify stakeholders’ interests and expectations relative to human rights issues, through interaction with non-governmental organisations, governmental authorities, and local communities, as well as through responding to issues identified in reporting initiative frameworks such as CDP’s Climate Change and Water responses, the JSE SRI Index requirements, the GRI requirements, the UN Global Compact Principles and self-assessment toolkit, the UN Guiding Principles on Business and Human Rights, as well as legal and regulatory requirements. Mitigating measures include requiring adherence to our Code of Conduct and Business Ethics and the integration of our human rights policies in our businesses and the supply chain. During the year, a number of externally contracted security personnel were provided with training in “Basic Human Rights”, an initiative which is intended to be implemented across the group. In relation to both our existing business operations and proposed new projects and business activities, a robust “stage and gate process” includes the identification of both positive and negative impacts on local communities. Our Social and Ethics Committee work plans include human rights monitoring processes to track performance against our human rights objectives.

Procurement

Illovo supports long-term growth and stability of the surrounding communities by sourcing correct quality at an acceptable premium, notwithstanding the economic advantages that would otherwise be gained by sourcing bulk supplies and technologies through the group procurement function in South Africa. A further benefit for the local communities is the indirect employment creation by suppliers providing sugar cane and other goods and services to Illovo.

During 2013/14, Illovo procured 54.1% of its supply requirements from local suppliers in the countries in which it operates, to the value of approximately R4 412 million. Furthermore, in the year under review the company procured 3.6 million tons of sugar cane from local emergent growers, earning these growers R1 568 million in revenue. Through this an estimated 46 000 people were supported by the outgrowers.

In South Africa the company complies with the preferential procurement requirements in terms of which B-BBEE points are earned for procurement from black-owned businesses, thus making the company a preferred supplier for local customers in terms of the country’s B-BBEE codes.

Socio-economic impact and materiality assessments

To form a deeper understanding of its impact, in 2013 Illovo commissioned an independent socio-economic impact assessment of its operations in each of the countries in which it operates. This complex undertaking, which was conducted by an international company, Corporate Citizenship, provides a clearer picture of our impact on the economies, communities and individual livelihoods in Africa and highlights opportunities for Illovo to enhance its positive social, economic and environmental impact.

Corporate Citizenship’s report on the Illovo group, which is available in full on our website at, www.illovosugar.com, summarises the key findings from a detailed study of each of the group operations which involved the review of the financial and operational information provided by Illovo and a series of site visits to its operations, which included visiting surrounding communities, interviewing senior management and key stakeholders affected by the business, including sugar cane farmers, smallholder association representatives, employees, trade union representatives, local suppliers, doctors, teachers and other beneficiaries of Illovo’s social investment spend. Corporate Citizenship also conducted its own desk-based research and analysis. A summary of the key findings of the group report is set out below.

Key findings of the Corporate Citizenship group report

CONTRIBUTED an estimated R18.5 billion to African economies, including direct, indirect and induced economic impacts. This is equivalent to about 50% of the GDP of Malawi.         EMPLOYED over 31 000 people directly (including seasonal workers), supported an estimated 46 000 people through outgrowers, and supported further employment in the value chain and wider economy of at least 15 000 using the most conservative estimates. This rises to at least 66 000 when other (still conservative) estimates are applied. Illovo’s total employment impact is therefore estimated at between 92 000 and 143 000 people across the six countries. For every worker directly employed by Illovo, between 1.9 and 3.6 additional workers are supported in the wider economy. In Tanzania where there is a high reliance on outgrowers; this equates to approximately 7.8 additional workers for every Illovo employee in that country, while in South Africa it includes approximately 2.4 workers for every Illovo employee.         SUPPORTED the livelihoods of between 400 000 and 625 000 people across southern Africa. This is based upon average household sizes applied to total employment estimates.         SPENT nearly R2 billion on employee wages, salaries and benefits. Employees received over 47% of Illovo’s value added in 2012/13. Benefits extended to employees and immediate dependants include the provision of accommodation (eg electricity, sanitation services and potable water supplies); healthcare (including wellness programmes); and education-related benefits (including educational allowances and bursary schemes).         PAID direct and indirect tax totalling over R900 million across all six countries.         SPENT 30% of its revenues (R3.4 billion) with independent, outgrower farmers in 2012/13.         PROCURED cane from nearly 17 000 smallholder farmers, with smallholders supplying over 90% of outgrower cane in Malawi, and 70% in Tanzania.         SPENT R4.9 billion on non-cane procurement suppliers in 2012/13. 64% was spent in-country, benefiting hundreds of small, local businesses. Much of the remainder was sourced through Illovo group procurement function in South Africa.         CONTRIBUTED R197 million on social benefits to employees and neighbouring communities, including healthcare, education, housing and other projects.         GENERATED 90% of total energy consumption from renewable sources, and in Swaziland, generated surplus electricity which is supplied to the national grid.

The process also looked at opportunities for improvement and provided detailed management reports for each country, together with group-wide recommendations to improve economic, social and environmental performance which are available on the summary report online. An updated socio-economic impact assessment will be conducted in due course.

Illovo strives to make a positive impact and eliminate, or at least minimise negative impacts on the communities in which we operate. Recognising that failure to respect internationally recognised human rights principles presents a significant reputational risk, affecting the sustainability of a business, our risk identification processes identify stakeholders’ interests and expectations relative to human rights issues, through interaction with non-governmental organisations, governmental authorities, and local communities, as well as through responding to issues identified in reporting initiative frameworks such as CDP’s Climate Change and Water responses, the JSE SRI Index requirements, the GRI requirements, the UN Global Compact Principles and self-assessment toolkit, the UN Guiding Principles on Business and Human Rights, as well as legal and regulatory requirements. Mitigating measures include requiring adherence to our Code of Conduct and Business Ethics and the integration of our human rights policies in our businesses and the supply chain. During the year, a number of externally contracted security personnel were provided with training in “Basic Human Rights”, an initiative which is intended to be implemented across the group. In relation to both our existing business operations and proposed new projects and business activities, a robust “stage and gate process” includes the identification of both positive and negative impacts on local communities. Our Social and Ethics Committee work plans include human rights monitoring processes to track performance against our human rights objectives.

Human rights in the supply chain

In addition to our commitment to upholding the human rights of our employees, we are committed to developing a broader culture of human rights in the communities around our operations and among those with whom we conduct business.

Further to the direct economic benefits which it brings to its supply chain, Illovo contributes to supply chain integrity through the promotion of globally accepted human rights practices by requiring its suppliers, contractors, service providers and representatives to comply with and to seek to develop similar relationships with their own supply chains, in compliance with all the applicable local laws and codes of best practice and consistent with the UN Global Compact Principles. These requirements are embodied in the company’s Code of Conduct and Business Ethics (available on the company’s website at www.illovosugar.com) and are incorporated into our supplier contracts, which requires our employees and suppliers:

• to avoid any complicity in human rights abuses and to adopt practices to protect against abuses of human rights in their activities and in their business relationships with others;
• to conduct business in compliance with all applicable legal requirements and in a manner that respects the rights and dignity of all their employees and the local communities in which they operate, including legitimate tenure rights and freedom of association;
• to adhere to the principle of free, prior and informed consent in all dealings with the indigenous communities in the areas in which our businesses operate;
• to procure that any adverse impacts resulting from their activities are minimised and justly and fairly compensated; and
• to encourage all suppliers and other persons contracting with Illovo to adhere to the same principles.

Our employees, suppliers, contractors, service providers and representatives are also required to uphold the protection of internationally proclaimed human rights, including freedom of association and effective recognition of the right to collective bargaining; elimination of all forms of forced and compulsory labour; abolition of child labour; elimination of discrimination in respect of employment and occupation; promoting environmental responsibility; working against corruption in all its forms; and providing a safe working environment for employees (see here in relation to our safety practices).

Concerning child labour, Illovo recognises the distinction drawn by the ILO between child labour and child work. It is aware that the social and economic circumstances in some countries are such that the economic unit is the family as a whole and that circumstances dictate that everyone in the household makes some contribution to the economic activity. Therefore, in relation to family and smallholder farms, it is acknowledged that light work may be carried out by children under the age of 15 years, but Illovo accepts this situation only on condition that they do not handle hazardous tools and/or chemicals or perform physically dangerous tasks and that such work does not interfere with their education or physical, emotional or psychological wellbeing. In its own operations Illovo does not allow the employment of children under the age of 18.

Stakeholder engagement

Our engagement with local communities and other vulnerable stakeholders is guided by the principle of free, prior and informed consent in relation to all matters where new projects may impact on them. Our procedures involve environmental and social impact assessments, ongoing stakeholder engagement and risk and impact monitoring, while ongoing consultation processes involve mechanisms to address grievances. In relation to matters which do not involve the company directly, and in relation to which the company does not have direct interaction with affected stakeholders, we are nevertheless committed to ascertaining that the third parties involved (including governments) conduct themselves in line with human rights principles and internationally acceptable best practice standards.

Project assessments

As indicated in our Social and Ethics Committee report, our practices and procedures require that all proposed projects undergo a stringent stage and gate process, including legal investigation of land tenure rights, working with local legislative frameworks and land reform programmes, consultation with local communities and public authorities and ensuring mutually agreed compensation where communities are affected by our operations. This includes providing technical and financial support to local community farmers supplying sugar cane to our operations and working with reputable development organisations to ensure projects are in line with accepted international standards.

Although Illovo is seldom involved in land acquisitions relative to its agricultural operations, our procedures reflect our zero tolerance to land-grabbing and prescribe that any proposed land acquisition (whether buying, renting, acquiring or otherwise accessing land or property) must involve consultation with all affected owners and users of the land or property. This is to ensure that they are adequately consulted and compensated; that past users and owners have not been wrongfully removed; that minorities and other vulnerable groups (including indigenous peoples) have been consulted to endeavour to procure “free, prior and informed consent” in relation to any matter affecting them; that the project does not result in scarcity of residential property or food commodities; and that affected owners and users of the land or property are adequately compensated to help them restore their standards of living or livelihoods to the same or higher than before; and the compensation standards are transparent and applied consistently to all communities and persons affected.

In South Africa, Illovo has sold and transferred 52% of its agricultural land holdings to previously disadvantaged communities, both prior to and after the introduction of the Restitution of Land Rights Act. We also work proactively with black farmers, managing and holding training programmes that provide technical and financial assistance to new emerging cane growers ensuring the long-term commercial sustainability of their farms. We are extremely proud of our endeavours in this regard, which have been recognised through our achievement of a Level 3 BEE status in terms of the Broad-based Black Economic Empowerment Codes.

Corporate social responsibility

As embodied in our Strategic Intent, we endeavour in various ways to ensure the wellbeing and advancement of our employees as well as the local communities and society in which we operate (as also reported in the Human capital report ).

In addition to the significant economic benefits that accrue to the governments of the countries in which we have operations through direct and indirect taxes (which are dealt with more appropriately in the financial sections of this report), we contribute to our local communities through various corporate social investment initiatives, often providing essential community support and, where local authorities are unable to do so, filling gaps in local infrastructure, either alone, or in collaboration with international donors and funders, governments and non-governmental bodies, as demonstrated by the projects detailed below.

Our initiatives include:

• providing access to potable water, which is a particular priority;
• providing medical facilities to some communities and funding local government hospitals;
• in Malawi and Zambia, supporting government strategies to tackle micronutrient deficiencies by fortifying our sugar produced for direct consumption with Vitamin A, thereby contributing to improving public health;
• funding maintenance and equipment for local schools or community organisations, and supporting government and corporate education related campaigns, including national literacy programmes and teacher support; and
• contributing to local sports, arts and culture.

The aim of Illovo’s social investment activities is to contribute to the development of thriving and vibrant societies against the background of our stated intent to be welcomed in the communities in which we operate. We are ever mindful of the rural and relatively underdeveloped nature of these locations, characterised by limited infrastructure and significant development needs.

As a long-term investor and major economic partner of the southern African region, the group has developed a social compact with its communities and people, and today administers wide-ranging social investment programmes aimed at infrastructural development, job creation, health and wellbeing, education, the provision of potable water and sanitary services, involvement in community projects and promoting culture and sports development.

Community projects motivated by its members and designated company representatives are subject to a thorough assessment to ensure they meet the prescribed long-term criteria of being meaningful, sustainable and have sufficient community reach and participation. Initiatives are managed either at a group or business unit level, depending on circumstance.

As more fully dealt with in other sections of this report, Illovo continues its involvement in community-based social investment, including:

• Education – In terms of community outreach, Illovo has been involved in a number of educational upliftment projects, including upgrades and administration assistance at 27 schools in five countries; support for government and corporate education-related campaigns such as national literacy projects and teacher support programmes, and the provision of necessary educational equipment.
• Health and medical – In areas where no public medical facilities exist, Illovo provides access to healthcare through the network of group-run primary healthcare clinics and hospitals to the local communities at nominal cost. We also provide programmes focusing on primary and secondary healthcare, occupational health, HIV and AIDS, malaria and TB, working closely with national programmes in our countries of operation. Control programmes for non-communicable diseases such as obesity, high blood pressure and diabetes exist at all our operations, and continues to provide services in respect of maternal and child health, reproductive health and neglected tropical disease (eg bilharzia).
• Civic services – Illovo has gone above and beyond in community involvement, supporting community centres, estate community policing, estate football leagues and day-care centres. We support community-based welfare and fundraising organisations, involving national health initiatives, feeding schemes, upgrading of public facilities and self-help programmes.

During the year under review, we contributed in excess of R22.7 million towards social investment projects, mostly for the benefit of the communities within the immediate vicinity of our operations. This figure includes expenditure on enterprise development initiatives not previously reported.

Social investment spend (Rm)
Categories	2014	2013	2012
Healthcare	2.1	1.0	3.9
Education	7.3	3.9	3.9
Community Support Services	3.3	8.7	6.6
Donations/Sports, Arts and Culture	10.0	0.6	0.3
Total	22.7	14.2	14.7

Note: The reporting format on social investment expenditure has been reviewed. Where some expenditure had previously been reported as “Donations” it has now been allocated to a specific type of contribution such as Health, Education or another appropriate category.

Projects and case studies:

some of our key projects include the following:

	In Tanzania and Malawi, Illovo companies have adopted a Trust model to help channel investments from development agencies and industry partners into the local community. The group’s Tanzanian subsidiary, Kilombero Sugar Company Limited, has established the Kilombero Community Charitable Trust, which supports the development of vital local infrastructure including electricity, drinking water, roads, health services and schools. In Malawi, Illovo has helped to set up the Kaombe Community Farm Trust in collaboration with the local community. The Trust sells sugar cane to Illovo’s Nchalo mill with profits invested in local community projects. One future project is the establishment of a rural health clinic, jointly funded by the Trust, Illovo and donors.
	Nature of project The number of South Africans with qualifications which require a basic education in mathematics, science and technology related studies remains inadequate to meet the country’s economic and other challenges. The number of pupils who study and pass these subjects at school level is also low. PROTEC is a programme established in 1982 to contribute to addressing this challenge by providing additional classes and other support activities for pupils in the last three school years in these subjects. Illovo Sugar Limited supports the Umlazi branch of PROTEC. Reasons for supporting this project PROTEC provides pupils with assistance in ssubjects that are vital for the development of the country and pupils who have been through the PROTEC programme have, over the years, performed well at final school year examinations and have achieved post-school qualifications in the disciplines that require a school foundation in the relevant subjects. Outcome achieved The programme achieved a 100% pass rate for pupils participating in it for 2013. Of the 35 participating pupils who wrote final school year examinations in 2013, 30 achieved a pass that allowed them to get admission to a degree and five qualified for admission to a diploma. In terms of post-school placements from the beginning of 2013, the programme was able to have 17 of its former pupils get a place at university, 16 at universities of technology and two at further education and training colleges, with 29 (83%) pursuing studies in engineering and science.

Outgrower development

We work closely with local indigenous farmers through our established cane grower development programmes, to improve the indigenous farmer participation in the respective country’s mainstream economies and to benefit both the farmers and the company by improving cane yields and quality, enabling the growers to boost their income while ensuring sustainable cane supply to the mills. The types of support provided to the sugar cane growers include:

Type of outgrower support	Description
Seed cane incentives	Funds for planting on new, uncultivated land
Transport subsidies	Supplementary payments to outgrowers located more than 50 to 60 km from Illovo’s mills
Small-scale grower development costs	Supplementary payments to small growers for purchasing fuel and other inputs that compensate for lack of bargaining power
Other supplementary payment	Amounts paid to outgrowers to guarantee a steady supply of cane to Illovo’s mills
Cane ripener subsidies	Subsidies for chemical ripeners which accelerate cane maturity and increase sucrose content
Training schemes	Training and mentorship schemes for outgrowers, including technical assistance and business management support
Guaranteed purchases	Illovo signs cane supply agreements with outgrower associations and smallholder schemes, through which it guarantees the price and quantity of sugar cane which it buys
Access to inputs	Illovo provides seed, fertilisers and other inputs to smallholders to allow them to benefit from bulk discounts
Access to finance	Illovo helps smallholders gain access to finance, including co-ordinating with local banks and in some cases providing loans directly to farmers. It has assisted with identifying and supporting donor funding opportunities
Access to infrastructure	Outgrowers often benefit from infrastructure funded by Illovo, including roads and irrigation; they may also have access to schools and hospitals opened by Illovo, usually for free

During the period under review, we spent R19.1 million on outgrower schemes across the group.

Development projects

Because of our successful track record in delivering community development projects, particularly in relation to our ongoing development and improvement of the technical skills of local community farmers, non-governmental organisations are attracted to, and are willing to participate in and provide funding for, community projects in collaboration with our operations, as we assist these organisations, as well as governments, to deliver their objectives.

Malawi

Solidaridad and Illovo Sugar Malawi participated in a large EU funded project in Malawi focused on improving the livelihoods of the members of the Kasinthula and Dwangwa sugar outgrowers, by strengthening the farmers’ technical skills in order to increase the sustainability, productivity and income. Both schemes assist more than 1 000 small growers covering in excess of 3 100 hectares of land. The training programme included agricultural skills, environmental management and sustainability, sustainable agricultural practices, occupational health and safety, gender, HIV and AIDS and civic education (including the abolition of child labour) and has significantly improved the technical knowledge and capacity of the outgrowers involved. The project was underpinned by several community-awareness campaigns which focused on other community based issues including gender-based violence, promotion of afforestation, the importance of education and ABET (adult basic education and training) and the roles of the community in ensuring proper care and guarding of the sugar cane irrigation equipment. In excess of 15 000 community members participated in these campaigns.

Mozambique

Illovo’s Maragra operation has been instrumental in assisting medium-scale growers in expanding their sugar cane areas, through loans for the development of an additional 840 hectares of new development area.

Maragra has also secured two major EU grants for outgrower development projects, one of which focuses on flood protection, drainage and water management and the other on capacity building and training for small growers. The beneficiaries of these projects are 30 farmer associations representing 4 064 registered indigenous smallholder farming families currently operating under subsistence conditions.

South Africa

Illovo played an integral part in securing government grants and commercial finance on behalf of small and medium-scale growers under the emergent grower mentorship programme, resulting in the continued development and economic viability of this sector of our operations. We have also embarked on various projects and cane development programmes to ensure that small-scale farmers who farm on tribal land are mentored and supported at Illovo’s cost. The cane development programmes focus on ensuring that local communities enjoy food security. Illovo has also entered into mentorship agreements with large commercial growers to mentor and assist small-scale growers. Several investment grants allocated to small-scale growers by the South African government for development schemes are administered and managed by Illovo on behalf of the growers. This forms part of ongoing initiatives co-ordinated by Illovo and local cane growing bodies to increase cane supply from the small-scale grower sector and includes rehabilitation of existing land under cane, as well as the development of new land to sugar cane agriculture.

Swaziland – LUSIP Project

A very effective smallholder development undertaken with the support of external funders, government, agricultural development organisations, NGOs and the private sector, is the Lower Usuthu Smallholder Irrigation Project (LUSIP) in Swaziland which, at a relatively early point of its development, has already brought about commercial viability to participants in the scheme. With secured funding and support from the EU and the Swaziland government, the LUSIP depended on the building of a R1.4 billion dam to provide enough irrigation water for the agricultural development of 12 000 hectares of land, 5 000 hectares of which was to be ultimately dedicated to sugar cane, under the stewardship of small-scale Swazi farmers. An important partner to the ambitious plan was Illovo’s Swaziland operation which committed to a significant R1.3 billion expansion of its own factory milling capacity and the upgrading of its power plant to produce enough electricity for its own operations and supply to the Swaziland national grid on a commercial basis, solely from biorenewable fuel stock – bagasse and biomass.

To date, a total of 2 600 hectares of land has been developed to cane by smallholders, collectively organised as associations and comprising around 30 landowners each, with aggregated farming areas of around 100 hectares or more. The agricultural expertise and infrastructural support from the local agricultural development agency, the Swaziland Sugar Association, Illovo and other partners, has resulted in smallholder farmers seeing their holdings turn from desolate brown scrub to rich green fields of sugar cane. Through extensive training and development offered by Illovo and the sugar industry, these farmers have developed their agronomic skills commensurately and armed with this knowledge, now tend fertile plots of land under cane, in some cases yielding more than 140 tons per hectare.

Key to the project was the commitment of the EU and the Swaziland government to provide grant funding for the development costs of the land, amounting to around 70% of the total costs. With cane in the ground for collateral, farming associations were able to borrow the balance of the funding required, primarily for crop husbandry costs in the first year to harvesting. The success of the project is demonstrated by the fact that certain of the associations have been able to settle their loans within the first two years of operation, distribute profits among their members, and invest in other income-generating projects.

The project is a sustainable development initiative which goes well beyond poverty alleviation, contributing handsomely to the socio-economic profile of Swaziland.

Tanzania

The Kilombero Community Charitable Trust (KCCT), established by Illovo’s Kilombero operations, inter alia, for the purposes of carrying out community projects, secured funding of €400 000 from Solidaridad for a capacity building project on a pilot irrigation project, focusing on technology transfer as well as the development of a world-class training resource centre and a capacity building programme for outgrower smallholders. The collection and sharing of information enables the outgrower associations to assess their operations, identifying gaps in their sustainability due to capacity and organisational weaknesses as well as providing electronic training. The grower resource centre allows growers to access information and advice, hold meetings and training sessions, and use interactive technology, for training purposes.

Financial assistance received from government

In general, Illovo receives limited financial assistance from governments, as noted above in South Africa, and in our other countries of operation in the form of tax relief/credits, subsidies, investment grants, research and development grants, awards and financial assistance from export credit agencies or financial incentives.