Our country started off this year with a very tough spate of COVID-19 infections resulting from the second wave and this had a direct impact on our operations and on the lives of many of our colleagues. We have however managed to get things under control over the past few months.
As we are currently in the midst of the third wave it is important that we be extra vigilant and take precautions to safeguard ourselves and those around us. As the COVID-19 vaccine rollout continues it is imperative that we maintain the precautionary protocols in place, as this virus and varying strains of it may be with us for years to come.
Our economy is projected to grow at approximately 3.1% for this fiscal year. This growth is expected to result from global stimulus packages which are triggering a commodity boom. South Africa and sub-Saharan Africa will benefit from this and we are starting to see this throughout our operations.
On the energy front there have been various positive developments emanating from the REIPPP programme as well as the launch of the Round 5 IPP programme. These developments are expected to manifest in firm orders over the next six months. This would give relief to our manufacturing operations, which have been relatively subdued over the past year.
I would like to commend our management teams for the results delivered over the past financial year. We have done relatively well under extremely tough conditions. Working capital and cash were managed on an exemplary basis. I would also highlight that our management teams have been extremely creative to adapt business operations to be aligned to market conditions. More than 75% of company profit came out of repairs and services activities, which is indicative that customers have been in a care-and-maintenance mode by maximising utilisation of existing assets.
I am very optimistic that the coming year will see a major positive trajectory as various infrastructure initiatives start to gain momentum and this would result in a capital cycle stimulus.
Government has reaffirmed its commitment to localisation and industrialisation, as is evident through various initiatives of the DTIC. It is also interesting to note that there are various positive developments as regards the African Continental Free Trade Agreement. The intent is to grow trade activities and industrialisation which will ultimately grow the African continent.
Mervyn Naidoo announces ACTOM Smart Technologies.
As part of a recent reorganisation of some of the divisions within ACTOM, a new division, ACTOM Smart Technologies, has been created which is specifically focussed on enabling the group to embrace the Fourth Industrial Revolution. The new division forms the basis of a platform from which to expand ACTOM’s business in the information and communication technology (ICT) space.
It is absolutely crucial as a country and a company that we grow by developing skills and attracting talent which is aligned with the requirements of the Fourth Industrial Revolution. We need to position ourselves to have resources required for jobs in 5 to 10 years from now. We need to embrace the new technologies available and actively seek to reinvent ourselves with regards efficiency and product offerings which are linked to the demands of the future.
There is a growing trend of community unrest which stems from the present unemployment crisis. This is a social crisis which is a major sustainability risk to our economy and country. It is crucial that companies like ourselves proactively seek opportunities to embrace local communities wherever we undertake activities in our operations. We need to actively create employment opportunities and develop people so that they have the required skills sets and avenues to sustain themselves.
All South African citizens need to stand together to turn around the current crisis.
Mervyn Naidoo