Investment Proposition

A COMPELLING INVESTMENT PROPOSITION

The Omnia Group is using unrivalled expertise in Africa to create value for customers by positioning the Group as a strong regional partner seeking answers to the pressing problems of food security and water resource management.

 

The world today faces the compounding problems associated with food security and insufficient global agricultural production, the dwindling availability of water resources and environmental change created by shifting global weather patterns. These problems are pitted against the need to drive global economic growth, particularly in developing countries. In an increasingly resource-strapped world, governments and businesses are focusing on finding sustainable solutions to these fundamental challenges.

The Omnia Group is involved in food production through the development and marketing of fertilizers, the management of water resources through its chemicals business, and is using its unrivalled expertise in Africa by implementing its business model focused on creating value for customers, positioning it as a strong partner in finding regional solutions for these pressing issues.

The Group continues to enhance its core operations and make strategic acquisitions to strengthen its unique position in Africa in relation to these critical global challenges.

The Africa opportunity

 

Long regarded as a developing continent beset by a myriad of socio-economic and political challenges, Africa demonstrated resilience during the recent global recession. Many African economies continued to grow, offering attractive opportunities for long-term investment in the infrastructure, industrial and commercial sectors.

Operating profit (R milion)

Underpinning this economic growth has been a commitment to legislative and regulatory reform and the implementation of “investor-friendly” policies to encourage direct foreign investment.

 

The continent continues to be a source of the commodities and minerals required across the globe.

 

The preservation of water resources and its utilisation in industry is becoming a focus of concern for African government and business, who are co-operating in ventures to reduce pollution and wastage of this precious resource.

The mining opportunity

As a leading supplier of explosives and mining chemicals, Omnia is highly regarded for its expertise in assisting mines with locally developed solutions that enhance safety and productivity in the recovery and processing of essential commodities.

 

Africa has vast mineral resources, ranging from gold, platinum, coal and copper to chrome and uranium. The unlocking of this mineral wealth is vital to the continued prosperity of developed countries as well as the world’s emerging economic giants, China and India.

 

Despite the recent volatility in the demand and prices of key commodities, the African mining industry will retain its importance as a regional and global supplier of mineral resources.

 

Metal commodity price history

OUR VALUES

The Omnia Group is characterised by a strong and distinctive culture. Combining the values of a family business with the virtues and strengths of a professionally managed public company, Omnia displays a robust spirit of enterprise underpinned by a reputation for the highest levels of integrity.

Energy commodity price history

As nations work to meet the spiralling demand for energy, the mining industry will continue to benefit from increasing global demand for coal. South Africa, with its massive resources of coal suitable for use in power generation and industrial furnaces, is well positioned to benefit.

 

The key role that nuclear energy will play in providing energy will favour southern Africa, which is a major source of uranium.

The alternative energy opportunity

Omnia, with its expertise in mining and agriculture, is positioned to assist governments and producers in southern Africa to extract the opportunities and reap the benefits in nuclear energy and the promising field of biofuel production.

 

The search for alternative forms of energy continues, driven by a world whose over-reliance on crude oil has been tested by volatile economic conditions. This has led to volatility in pricing of goods, services and transport.

 

Biofuels, producing energy from biomass waste, and renewed interest in the use of hydro, wind, solar, wave and nuclear power will inevitably come into their own as the world seeks sources for sustainable and renewable “clean power”.

Return on shareholders funds (R million)

 



The agricultural opportunity

Strategically positioned as a leading supplier of fertilizer and agronomic expertise, Omnia’s holistic and specialist offerings contribute to sustainable food production through the intensification of agriculture, as well as reduced rural poverty and sound environmental practices in farming.

 

Less land available internationally for agriculture, increasing populations, dietary changes, increased urbanisation, and changing weather patterns have resulted in global demand for cereal crops exceeding supply, a situation that has led to increasing prices and food inflation.

 

Against this background, increasing agricultural yields and the productive use of farmland has become an international focus.

 

Private Public Partnerships and the participation of Non Governmental Organisations in finding solutions to food security challenges and creating sustainable agricultural models, will play an increasingly important role in reforming present farming practices and assisting emerging farmers in the development of sustainable commercial farming enterprises.

Omnia’s positioning in mining, alternative energy and agriculture will ensure that the Group has a key future role to play in South Africa and across the African continent.