We are operating in an economic environment heavily constrained by domestic and global challenges which impact on our business performance. As the global economic slowdown in major economies continues, the Group continues to take appropriate measures and strategies to explore alternative opportunities for value creation.
We continue to build a resilient Group of businesses that will create and deliver sustainable value for our shareholders and stakeholders. Our strategy is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.
DEFINED CONTRIBUTION PENSION PLAN
Our Management Approach
The Group ensures that all qualifying employees are members of voluntary and statutory pension schemes managed through selfadministered defined contribution pensions and the relevant statutory bodies. We manage the Innscor Africa Limited Pension Fund, National Foods Pension Fund and Colcom Pension Fund under the Group. Compulsory external schemes comprise the National Social Security Authority Scheme, Workers Compensation Insurance Fund and the Catering Industry Pension Fund.
The total contributions to the schemes for the year is presented below:
ECONOMIC VALUE DISTRIBUTED
Economic value generated is distributed through different forms that include operating costs, employment, procurement, taxes and capital investment which is presented in detail through our financial statements. However, in this section, we present distributions considered significant and material to our stakeholders.
|Economic Value Generation||Unit||2018||2017||2016||2015|
|Other Income and Interest||US$||5,278,646||4,527,464||5,905,253||6,341,000|
|Equity Accounted Earnings||US$||11,785,408||6,223,551||4,760,760||2,872,970|
|Economic Value Distribution||Unit||2018||2017||2016||2015|
|Other Operating Costs||US$||(85,793,959 )||(81,622,545)||(83,600,705)||(84,122,337 )|
|Staff Costs and benefits||US$||(75,327,739 )||(66,088,198)||(72,183,166)||(71,045,397 )|
|Impairment and related charges||US$||(3,611,024 )||(9,908,385)||(1,708,921)||(415,868 )|
|Depreciation and Amortisation||US$||(16,619,630 )||(15,289,432)||(15,974,415)||(14,291,179 )|
|Providers of Capital||US$||(8,226,676 )||(6,233,574)||(6,127,835)||(4,806,204 )|
|Provisions for Taxes||US$||(14,155,566 )||(7,940,188)||(8,523,652)||(8,038,306 )|
PAYMENTS TO GOVERNMENT
Our payments to Government are through taxes, licences and fees paid by our operations. Below is a summary of taxes paid by continuing operations:
|Corporate Tax – Associates||US$||5,224,084||1,084,357||1,148,496||1,007,136|
|Corporate Tax – Subsidiaries||US$||8,226,676||6,562,720||11,548,556||9,186,042|
|Value Added Tax (VAT)||US$||5,249,569||6,624,349||5,855,393||3,950,770|