Overview
Airports Company South Africa SOC Ltd (ACSA Group) is the owner and operator of South Africa's nine key airports which include the three main international gateways: O.R. Tambo, Cape Town, and King a International Airports. ACSA's Group offering includes local and cross-border investments in other airports, as well as provision of airport operations / management technical and advisory services. Our primary responsibility is to provide state-of-the-art airport infrastructure for civil aviation to facilitate seamless flow of trade and tourism within the country and with global markets.
The Group is predominantly owned by the South African Government, holding a significant 74.6% stake. Our objectives are closely aligned with the national developmental goals, focusing on creation of value for shareholders, socio-economic transformation, and sustainable growth. In line with the government's objectives, we focus on creating sustainable value that positively impacts our business, our people and society, and our environment. These elements are the core tenets of our Sustainability Framework.
Our Mandate
In line with the Airports Company Act, No. 44 of 1993, as amended, Airports Company South Africa is mandated to undertake the acquisition, establishment, development, provision, maintenance, management, operation and control of any airport, any part of any airport, or any facility or service at any airport normally related to an airport function.
What we stand for
Our Sustainability Framework
Our Sustainability Framework outlines three fundamental references for our business's sustainability and ensures that our decisions and actions aid our journey towards Vision 2030 responsibly and sustainably. It demonstrates the way in which we use our inputs to secure the sustainability of our business, contribute to the communities we serve and protect the natural environment in which we operate.
Inherent within our Vision 2030 sits our aim to be a Stage 5 sustainability company – where integrated sustainability is embedded into the company's culture and strategy. Sustainability will be at the e in all that we plan, develop and deliver to become a successful business that continues to do the right thing.
With our sustainability value-creation outlook, we will continue to focus and channel our resources, remain agile, and identify structures, approaches, s and initiatives that will bring about high impact transformation.
"… Meet(ng) the needs of the present without compromising the ability of future generations to meet their own needs." (d report, WBCSD).
Our Long-term outlook
Innovate, Grow and Sustain
ACSA established a l strategy, commenced the implementation of its governance framework and operating model to enable the company to be the most sought-after partner in the world for sustainable airport management solutions by 2030.
In response to an ever-changing global aviation landscape, ACSA undertook a review of its Strategy to serve as a framework to guide the n over three strategic timeframes from FY2024 and beyond 2030. The strategy is centred around three business pillars, run airports, develop airports and grow footprint and to create value over the short-, medium- and long- term.
Our Innovate, Grow and Sustain serves as a forward-looking approach and a pivot from the Covid-19 response driven Recover and Sustain Strategy to reinforce innovation, improve our infrastructure, and foster community-centric growth. ACSA recognises that innovation is the catalyst for transformative change and inclusivity, beyond mere technological advancements but to encompass a diverse range of innovations aligning with the Company's growth and sustainability objectives. The evolving Sustain, Innovate, Grow Strategy emphasises that innovation is a crucial prerequisite for sustainability, and that sustainability extends beyond a singular goal into a holistic, all-encompassing commitment.
In the context of creating value over time, the company's long-term horizontal outlook is outlined as follows:
Our Strategic Pillars
Our three-pillar strategy, namely, to Run airports, Develop airports and Grow our footprint, underpins the delivery of sustainable value. This strategy outlines key outcomes that define our success. They will help us achieve our Vision 2030 objectives and become the most sought-after partner in the world for sustainable airport management services.
We remain committed to the transformation imperatives of the National Development Plan and seek to aid the eradication of poverty through various programmes and initiatives. Socially, we position ourselves in a manner that guides development while embodying equality and fairness. The Company's and country's needs inform our transformation model and activities, which directly relate to our Strategy.
Our outlook remains positive, primarily due to the effort placed in supporting our growth using our governance framework and operating model to drive our strategy which is aligned to the impact on business, people and society and the environment towards achieving our Vision 2030 statement.
Our Operating Model
ACSA’s operating model is integrated with our strategy and is at the heart of all we do. It is organised around the key objectives of business and financial sustainability, consistent customer and stakeholder satisfaction, impeccable internal processes, and superior organisational capability.
Our Reporting and Accountability Structure
The Board is responsible for the strategic direction of the Group and for financial and fiduciary oversight. The Executive Committee, under the leadership of the Chief Executive Officer, is responsible for the day-to-day management of the Group.
Our Footprint
ACSA's airport network in South Africa is strategically located in nine major business and tourism hubs, with an airline route network servicing provinces such as Gauteng, Mpumalanga, Limpopo, Free State, KwaZulu-Natal, Eastern Cape, Northern Cape, and Western Cape. ACSA's network of airports is connected to all 6 inhabited continents, facilitating seamless movement of trade and tourism.
Our local footprint is expanding, marked by a 5-year airport management service level agreement between ACSA and:
- UMhlathuze Municipality for Richards Bay Airport, and
- City of Tshwane for advisory and technical services for m National Airport, North of Pretoria.
- UMhlosinga Development Agency through a Memorandum of Understanding, with the aim to facilitate a partnership and knowledge sharing on the operations and management of Mkhuze Airport – the MOU is under consideration.
Furthermore, the Company has recently concluded a Memorandum of Understanding with Gateway Airports Authority Limited (GAAL) for Polokwane International Airport and potentially other airports identified within Limpopo. The nature of the partnership with GAAL is to provide support on interventions relating to airport management, operations, and planning, through provision of advisory and technical services to ensure compliance with Civil Aviation regulations and standards. Furthermore, this partnership is consistent with ACSA's developmental mandate and the need to foster for an integrated national air transport network for seamless flow of people and goods across and beyond South Africa's borders.
In the fiscal year FY2023/24, following the Presidential Bi-national Commission between South Africa and Democratic Republic of Congo, ACSA concluded a 5-year Airport Commercial Master Services Agreement with the Democratic Republic of Congo's (DRC) air transportation authority, e des Voies Aeriennes (RVA), aimed at developing airports across the DRC.
N'djili International, Ndolo, and Lubumbashi International airports has been concluded in the second quarter of FY2023/24. The last quarter of FY2023/24 will see the presentation of a due diligence report and intervention proposals to RVA for discussion and subsequent negotiations with ACSA. The implementation of phase one will commence in the first quarter of FY2024/25.
Our international "Sister Airport Agreements" with Flughafen München GmbH ("Munich Airport") in Germany and the Airports of Thailand Public Company Limited ("AOT") continue to be active and operational. As outlined in the Corporate Plan, ACSA's key objectives with the Sister Agreement Partnerships are to explore collaborative opportunities with partner airports, with focus on key priority areas such as cargo and logistics, ICT, aviation security services, and real estate.
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During FY2020/21, ACSA's Board of directors resolved to sell the Company's equity stake in the GRUPAR consortium - responsible for the operations and management concession of Guarulhos International Airport in São Paulo, Brazil. The Company entertained offers from prospective investors, but none met its expectations. Consequently, the Company undertook an extensive market assessment highlighting, among other factors, a significant rebound in traffic at Guarulhos International Airport after the COVID-19 pandemic's adverse impact and improved economic conditions. As a result, the Board has re-evaluated the situation and is assured that retaining its 20% investment in GRUPAR is the right decision. Hence, the Company will persist as an engaged investor in both Brazil and Latin America.
Airports Company South Africa SOC Limited (Company), recognises that all parties contemplating any contact with the Company are entitled to know in advance its ethical attitudes to conducting business. This Code of Ethics aims to provide this information as simply as possible.
Code of Ethics.pdf
