Commodities Trade and Investments

What are Commodities ?

A commodity is a basic good or raw material in commerce that people buy and sell. Commodities are usually the building blocks for more complex goods or services.

Our diversified commodities business though our strategic investments is based in South Africa with its associated entities based in the Middle East. Currently we areinvesting and trading commodities both locally, Africa and the rest of the globe.

Our Investee companies are vested in the following commodity sectors;

Energy

(Coal, Natural Gas, Crude Oil and other petroleum based products)

Our subsidiary companies within the group continue to invest in the mining sector either through trading of energy based commodities or the acquisition of interest in processing plants. We continue to offer our un-wavered support in the funding of local South African black mine owners and permit holders. The mining sector as a whole continues to be a significant contributor to employment.

Agriculture

(Fertilizer, Maize, Wheat, Rice, Beans,Soybeans, Palm and Sunflower Oils)

” Small countries are doomed to poverty unless they have open markets and free societies. And yet the typical African country is small, with closed markets” – Paul Collier.

Hundreds of millions of people in Sub-Saharan Africa are going hungry due to conflict, climate shocks, and rising food prices triggered by global conflict, more especially in Eastern Europe.

In light of Africa’s food crisis being set to worsen, our organsation through its affilate entities has entered into agreements to supply basic foods and meet the needs of the most vulnerable. We have also secured other agriculutural commodities such as Urea (fertiliser) that is required to stimulate the farming sector in many African countries.

We continue to be in negotiation with certain governments, Non-Profit organisations to see how best we can add value to the current food security crisis that faces the continent.

Metals

(Copper, Chrome, Iron Ore and gold)

Historically, the value of Africa’s total trade (ie. Imports plus exports) expressed as a percentage of its GDP has been high compared to the rest of the world but obviously low in absolute terms given the small size of the African economy.

The aftermath of the 2007/2008 financial crisis saw Africa’s exports decline more rapdidly than global averages. This was further been exacerbated more recently by Covid 19 pandemic.

Our organisation, through its executive team have been mandated by companies based in the America’s, Middle East and parts of Europe to facilitate the export of certain metal commodities from the continent. Our acceptance of such arrangement stem from the sound relationships we have developed both in the Public and Private sectors in Africa and globally.

Our investments and trades are most often made via our very own fund structures. Instances where the quantum of the trade or investments need to be scaled up we engage with our key strategic alliance partners in the more developed economies to partner with us. These global alliances are essential to the development of our international business dealings through the creation of funding structures, integrated supply chains, which enable our commodities businesses to perform at the most competitive, agile and optimal levels.

Our focus remains on servicing the African market through our trade and investment more importantly in the Energy and Agriculture sectors.

Our organisation endeavours at the very best to operate in line with the United Nations Sustainability Development Goals, notwithstanding certain trade off’s in economic value, employment and energy.

Trade Finance

We offer a comprehensive range of trade finance solution through our global affiliates allowing our clients the funding opportunities to trade both locally, cross-border and offshore

We are able to offer the following collateral through our global partners;

Standby Letters of Credit
Documentary Letters of Credit
Bank Guarantee
Advance Payment Guarantee
Performance Guarantee
Bank Comfort Letter

Our global team of highly proficient experts offer the most comprehensive trade finance solutions.