
During the recent KwaZulu-Natal Investment Conference held in Durban, sixteen multi-national and local businesses pledged to invest a total of R70.8 billion in their manufacturing plants and new property developments across the province over the next two years. This is a great buildup towards the 2025 South African Investment Conference. Investment pledges spanned sectors from manufacturing, tourism, automotive, and logistics to property development projects.
One of the investors is the locally brewed paper giant, the South African Pulp and Paper Industries Limited (SAPPI) which was founded in 1936 with headquarters in Johannesburg. The company produces and sells commodity paper products, pulp, dissolving pulp, forest and timber products for the Southern African and international markets.
Sappi pledged a R10.8 billion investment to upgrade and improve the performance of its business, improve profitability, align with its group strategic objectives, and deliver on our sustainability commitments.
Recently the company went through quite noticeable cosmetic adjustments and improvements. In September 2024, the long-serving CEO of Sappi Southern Africa, Mr. Alex Tiel, handed over the baton to the former Vice President Sales and Marketing, Mr. Graeme Wild, to continue taking the business to greater heights. Shares rallied on this move while it reported a better-than-expected earnings performance for its fourth quarter. Healthy demand from customers in North America and South Africa helped, with the group also getting a boost from improving prices for dissolving pulp.
According to the company’s recent financial report, the South African region delivered an excellent quarter with an adjusted EBITDA of ZAR 2,033 million, enabling the region to achieve its third consecutive record performance. The success was largely driven by variable cost savings and favourable selling prices for DP. Sappi’s financial results for the fourth quarter and full year exceeded expectations, and on 6 November 2024, the directors approved a dividend (number 91) of 14 US cents per share, which will be paid to shareholders this month.
As South Africa’s official marketing agency, Brand South Africa takes a keen interest in showcasing local businesses making huge economic strides to better position the country as a competitive investment destination of choice to potential investors.
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