Thoroughly assessed the strategic fit of international portfolio have concluded that Logistics International is noncore to our Gateway-to-Africa strategy and will explore an appropriate exit plan for this business. The current macroeconomic uncertainty, this may take time to progress as the objective is to maximize value for shareholders through this process. Imperial’s financial results for the six months ended December 31 last week. The strategy was to transform Imperial from a portfolio of regional businesses into an integrated, end-to-end market access and logistics business with a focus on Africa. Imperial had a competitive advantage in Africa, and that the group did not need the Logistics International business in its current form to expand further into the continent.
This would be to take a client’s product from the port to the end-market in one of the fastest-growing markets in the world. Imperial had a $1-billion-plus business in Africa touching about 20 markets, mainly in the healthcare and consumer goods industries. A powerful position to have and we want to build on that. Now that we have established a footprint in key markets –in Nigeria, Kenya, in Ghana – we are seeing the next phase of our Africa expansion. Strategy includes growing the network into other countries, and to include sectors such as commodities, industrial goods and agriculture. Market Access business saw operating profit drop by 17%, to R422-million, with the Logistics Africa business experiencing a 25% drop in operating profit, to R473-million. Restrictions eased and Covid-19 vaccines were rolled out, volumes and operating activities were improving, even though the business was not yet at pre-Covid-19 levels, he noted.