​The aviation industry plays a crucial role in facilitating economic growth and sustainable development in various ways. Aside from providing a global transportation network, making it essential for global business and tourism, the sector creates sustainable jobs and broadens the tax base, which enhances living standards, ultimately reducing poverty.

Since its inception in 1993, Airports Company South Africa (ACSA) has transformed a fragmented, infrastructural parastatal into a focused, customer-driven, efficient, and commercially successful business, whose airports have become critical success factors to brand – South Africa.

The Company currently owns and manages a network of nine airports across South Africa, including the three main international gateways of OR Tambo International, Cape Town International and King Shaka International Airports.

The aviation sector's ability to move goods and people efficiently across the world has significant economic benefits. ACSA's airports facilitated the movement of 21 million passengers and about 374 million tonnes of cargo in 2022.

In the 2023/24 financial year, ACSA's contribution to the country's gross domestic product amounted to R741 million, it also contributed 4 734 jobs to the South African economy and achieved an income contribution of R815 million. Additionally, ACSA operations supported 95 014 economy-wide jobs in 2022.

The aviation industry plays a significant role in poverty reduction by providing high-value employment that keeps many households in South Africa out of poverty. If the aviation industry were to cease operations, the percentage of households living below the poverty line would increase by over 53 100 households.

But apart from its financial impact, ACSA's mandate requires it to make a positive contribution to the socio-economic transformation of South Africa by promoting inclusive growth that boosts the economy, creates jobs and empowers people.

"Navigating the ever-evolving landscape of aviation and air travel makes it increasingly evident that our commitment to sustainability is not only crucial for our group's success but also for the well-being of our planet and society. We are proud of our collective dedication to sustainability, marked by the adoption of a robust Environmental, Social and Governance (ESG) framework," says Ele Tshikovhi, Group Manager: Transformation at ACSA.

ACSA's extensive and wide-ranging socio-economic development (SED) programmes are informed by its ESG framework, which covers business, people, society, and the environment. Tshikovhi explains that the Company's SED programmes are designed to drive community upliftment of marginalised and poverty-stricken communities and to create social cohesion and inclusion.

"It is important to remember that ACSA's contribution to the economic growth and development of the country extends beyond the financials. Our SED initiatives tell a story of a key enabler of economic growth, transformation, and development," she says.

"Creating meaningful and sustainable livelihoods in historically disadvantaged communities near our airports is the cornerstone of our Socio-Economic Development strategy. This strategy aims to fulfil the legislative requirements outlined in the Broad-Based Black Economic Empowerment Revised Codes of Good Practice, and the policies and programmes in the National Development Plan."

For the financial year 2018/19 to 2021/22, ACSA invested a total of R101 million in SED. However, the adverse impact of the COVID-19 pandemic on the global aviation industry forced the group to cut back on its SED spending over the past few years. Thus, while ACSA invested R46 million in SED projects in 2019, this spending dropped to R14 million in FY2020/21 and R10 million in FY2021/22, recovering marginally to R13.7 million in FY2022/23.

Yet, this is by no means a sign that ACSA is letting up on its SED commitments and Tshikovhi points out that ACSA's SED spending will not remain at its current low levels in the long run, as ACSA's post-pandemic recovery and revenue growth will result in an uptick of SED investment. Despite the recent dip, ACSA has invested in excess of R150 million in SED projects since 2018.

"Because of our financial constraints, budget allocation was reduced in line with what ACSA can afford in terms of our recovery post-COVID-19. We are still in recovery, but we are hoping to ramp up SED spending as and when our financial performance recovers," says Tshikovhi.

"Our vision remains clear. We are going to make sure that we maintain the status quo of SED projects by continuing to contribute to our society so that holistically – as a social imperative – our role in society is well understood," adds Tshikovhi.

Education is a major focus point for ACSA, as the company considers education to be one of the key enablers of sustainable socio-economic development. As such, ACSA invests predominately in education initiatives, specifically in providing essential infrastructure services to schools and educational facilities in need.

Tshikovhi reveals that about 70% of SED spending has been in the education sector. In terms of education, outreach is highest in cases where individuals attended secondary or tertiary education, which reflects the skills and education demand of the aviation sector.

Through its donation of R2.5 million to the Metsing Early Childhood Development Centre, in Bloemfontein, in the Free State, the centre – which was previously housed in a shack – could be equipped with fully furnished mobile classrooms, ablution facilities, a sick bay, storeroom, kitchen facilities, books, stationery and a play area. ACSA has also spent a total of R3.6 million on early childhood development (ECD) practitioners' training projects in Johannesburg, Bloemfontein, and Durban with 80 women benefiting from this programme while impacting more than 3000 children indirectly in these provinces respectively.

In line with driving environmental sustainability through ACSA's SED programmes, 11 graduates completed an accredited skills programme in East London on Renewable solar energy in May this year. In addition to solar panel installation, candidates were also equipped with business planning, financial management, market research, effective communication and entrepreneurship skills to prepare them for opportunities in the renewable energy sector. Furthermore, ACSA also supports SED programmes that develop waste management and recycling entrepreneurship skills for unemployed women and youth residing within the airport local communities to address environmental sustainability and job creation.

Additionally, the Company has supported projects aimed at enhancing learners' performance in Science, Technology, Engineering and Mathematics (STEM subjects), with beneficiary schools in Johannesburg, East London and Gqeberha.

Tshikovhi notes that ACSA also invests in skills development programmes for ACSA employees and an employees' children bursary scheme, while also funding young talent development programmes that include a training programme for trainee engineers and placing interns from various fields across the organisation.

"Internally, we are consistently transforming our organisation through our people and culture strategy, our approach to employment equity, our policies and procedures, our management control and our educational and skills development programmes," she says.

"While young people between the ages of 18 and 35 are a primary focus for us, access to skills development and further education and training is available to all employees, up to and including those at the executive level."

However, beyond education, ACSA's commitment to societal transformation is evident through its support for historically disadvantaged communities situated close to its airports, in alignment with its SED strategy. By diligently implementing this strategy, ACSA was not only able to meet the stipulations of the Broad-Based Black Economic Empowerment Act and the Department of Trade and Industry's Codes of Good Practice but also contribute to the goals outlined in the National Development Plan 2030.

"During the last financial year, we invested R13.7 million in socio-economic development projects throughout the country, focusing in particular on the communities in which we operate. These included projects in early childhood development, agri-processing and food technology, malaria prevention, renewable energy, food and gardening, nutrition, entrepreneurship training, carpentry and furniture making, waste management and recycling, sewing, brickmaking skills and paving, poverty alleviation, and nature conservation," says Tshikovhi.

She adds that by integrating sustainability into its organisational DNA, ACSA has also signalled its unwavering determination to generate a positive environmental impact while ensuring its enduring success.

"From an environmental sustainability perspective, Cape Town International Airport supports a humane and ecologically sound bird and wildlife management programme around its vicinity, as well as a partnership with the non-profit organisation Green Cape to provide renewable energy to households in two communities that do not have legal access to electricity," says Tshikovhi.

Last year, work commenced on the construction of a solar power plant at East London's King Phalo Airport, in the Eastern Cape, which will lessen the airport's dependence on Eskom and also reduce its carbon footprint. ACSA has appointed contractors for the design, supply, installation, testing and commissioning of a ground-mounted non-tracking 650 kWp Photovoltaic Solar Plant at the airport. Currently, four of ACSA's airports are equipped with solar farms.

Due to various environmental sustainability initiatives across the group, Tshikovhi says that ACSA had realised a total electrical consumption decrease of 14% decrease from FY2019/20 to FY2020/21. This is despite a 132% increase in passenger numbers post the pandemic.

Similarly, the Company has seen a total waste consumption decrease of 83% from FY2019/20 (10 624 kg) to FY2021/22 (4 843 kg. Combined bird and wildlife strikes declined by 56% from FY2019/20 (305) to FY2021/22 (195).

ACSA has attained the Airports Council International's airport carbon accreditation certification at all nine of its airports, as well as an ISO 14001: 2015 Environmental Management accreditation at all its airports.

"Our environmental management programme focuses on energy conservation, climate change mitigation, water usage, waste management, air quality, noise management and biodiversity. It is a key strategic aim for the ACSA Group to become carbon neutral as soon as financially and technologically possible. Environmental risk is closely monitored and a report on this area of risk is presented to the Board on a quarterly basis," says Tshikovhi.

"We remain deeply committed to managing our environmental impact and have best-practice strategies, policies, processes, and procedures in place to do so. Ongoing engagements are held with the relevant regulators to ensure that ACSA remains compliant with its obligations regarding environmental monitoring and reporting."

ACSA's mandate requires it to make a positive contribution to the socio-economic transformation of South Africa by promoting inclusive growth that boosts the economy, creates jobs and empowers people. The Company strives to transform its business, its people, its society and its environment to address inequality, strengthen our democracy and promote sustainable use of environmental resources.

ACSA's sustainable value creation is centred on stimulating economic prosperity, social equity and environmental integrity, underpinned by the drive to contribute to the socio-economic transformation of South African society. Tshikovhi says that good corporate governance is critical to the sustainability of the business as espoused in the King IV Principles of Good Governance.

"The Board recognises that the Company is an integral part of society and places great importance on being a good corporate citizen. This includes recognising the intrinsic value stakeholders bring to ACSA and their role in securing our long-term sustainability," she says.

"Our dual mandate requires that we strive to be a successful business while also playing a pivotal role in the transformation and development of our country. As a state-owned company, an inherent part of our purpose is operationalising the economic transformation plans of government. As such, our commitment to transformation, environmental, social and development goals inform all our strategic decisions."

Tshikovhi notes that the principles and recommendations outlined in King IV are entrenched in ACSA's governance structures, policies and procedures. This is the foundation on which ACSA has built an ethical culture. The Board ensures that high ethical standards and governance practices are channelled into all levels of the organisation to enhance ACSA's reputation, build trust and, ultimately, create and protect value for all of its stakeholders.

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