Integrated_Annual_Report_2026 - Flipbook - Page 138
INTRODUCTION
SASOL AT A
GLANCE
DRIVING SUSTAINABLE
VALUE CREATION
EXECUTING
STRATEGY
DELIVERING
BUSINESS VALUE
SUMMARISED FINANCIAL
PERFORMANCE
CORPORATE
GOVERNANCE
SUSTAINABILITY
REPORT
REMUNERATION
REPORT
ASSURANCE/
ADMINISTRATION
SOCIAL – COMMUNITY CONTINUED
Economic inclusion continued
PROGRAMMES AND PERFORMANCE
Advancing Inclusive Economic Participation
In line with Sasol’s purpose of driving inclusive procurement,
the organisation continues to build a resilient and diversified
supply chain that contributes meaningfully to economic growth
and socio-economic development in the communities where
it operates.
• Preferential procurement remains a powerful lever for inclusive
growth and a key enabler of Sasol’s transformation strategy. In
FY26, Sasol achieved R41 billion (FY25: 43 billion) in preferential
procurement spend with majority Black-owned enterprises,
and R27 billion (FY25 R27 billion) with Black women-owned
businesses
• In addition, R43 million (FY25: R51 million) has been invested
in the development of small enterprises. This reflects a more
streamlined and focused approach, with a reduced number of
entities onboarded for development to respond to Operating
Model Entity (OME) needs. Of this investment, 35% (FY25:
30%) was directed towards 100% Black women-owned
enterprises
Investment in Growth
In response to a more constrained operating environment,
Sasol adopted a deliberate shift towards a more targeted and
outcomes driven enterprise and supplier development approach.
This strategic streamlining is reflected in the moderated
development investment of R43 million in FY26; alongside a
more focused portfolio of SMEs under development where Sasol
supported 223 SMEs in FY26 (FY25: 232). This approach
strengthens the alignment between development support and
business integration outcomes, supporting the progression of
SMEs into active participation within Sasol’s supply chain and
improving the return on development investment.
• Training interventions to enhance capability development,
reached 959 beneficiaries (FY25: 505) across over
400 entities. This reporting metric has been refined to reflect
total trained beneficiaries rather than solely business owners as
well recognising that training interventions often extend across
broader SME teams
Supplier progression and integration
• While development reach remains high, conversion into
sustainable, long-term supply opportunities remains
constrained. Out of 22 suppliers ready to do business with
Sasol, only six have been successfully integrated into the value
chain. The relatively low conversion rate highlights a persistent
structural constraint
Funding and financial inclusion
The Siyakha Trust continues to serve as a cornerstone
of Sasol’s financial inclusion agenda, providing
concessionary loan funding to SMEs within the
company’s supply chain. During the financial year, the
Fund delivered the following outcomes:
SME financial performance
• Funding disbursements summed up to R115 million
• Revenue growth declined from 70% to 32%
• Profit growth reduced from 70% to 44%
• Interest rate savings decreased from FY25: R21 million to
offered to 22 suppliers (FY25: R103 million allocated
to 37 suppliers), reflecting a reduction due to a
constrained SME pipeline
• A total loan book balance of R594 million serving more
than 71 active loans (FY25: R637 million). FY25 is higher
due to loan repayments and lower disbursements
A shift towards short-term funding instruments has
resulted in reduced participation in post-investment
support programmes.
Market access and Capability development
• Market access interventions have increased; with 14 delivered
in FY26 (FY25: 13), thus reflecting a strategic shift towards
reducing SME reliance on Sasol and enabling access to
broader markets and opportunities
Where practicable, Siyakha funded entities are enrolled
into industry specific development support programmes,
strengthening operational capability, sector relevance, and
long term viability beyond financial support. Loan management
is further strengthened through a diversified funding mix,
reducing portfolio concentration risk and improving resilience.
Additionally, automated loan performance management has
been implemented, enabling real time loan tracking, enhanced
oversight, and the early identification of emerging risks across
the portfolio.
Strengthened portfolio performance
Portfolio performance was reinforced through continued active
loan management, supported by structured post investment
engagement focused on sustainability and repayment
performance.
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Although SME performance remains positive, it has decreased
from the high growth levels achieved in FY25. This decrease is
largely attributable to current economic conditions, which are
being felt across global markets:
R16 million, driven by lower market interest rates and a shift
in the funding mix towards shorter-term facilities
Jobs and economic impact
• Jobs created in FY26 is 444 (FY25: 212)
• Jobs sustained in FY26 is 3 478 (FY25: 3 152). This indicates
improved business continuity
This trend reflects shifts in broader economic conditions and the
nature of funding disbursed during the period. While increased
short-term funding strengthened SME liquidity and operational
stability, it inherently lowers job creation outcomes compared to
longer-term capital investments.