When a global giant like Associated British Foods (ABF), parent company to Ubombo Sugar Limited, talks about investment, they usually focus on the next fiscal year, but CEO Paul Kenward, has made it clear that the group’s involvement in the country is measured in generations, not fiscal quarters. Addressing concerns about the stability of international investment in a recent interview, he stated emphatically that the company is “definitely not flying by night,” saying ABF plans to be here for decades.
This statement is backed by a massive £100 million investment earmarked for the next few years to bolster operations at Ubombo Sugar Limited, including significant projects like the new power station and debottlenecking of facilities. The driving force behind this long-term perspective is the unique ownership structure of Associated British Foods (ABF). While the company is listed in London, it is substantially owned by the Weston family, which allows for a strategic horizon that most public companies simply cannot afford.
Paul explained that his mandate is to “maximize value over 50 years, not over the next quarter.” This patient capital approach is a perfect match for the local landscape, particularly through the partnership with Tibiyo Taka Ngwane, which holds a 40% stake in the business on behalf of the Nation. “I believe His Majesty is also a long-term thinker,” Paul noted, adding that the interests of the Weston family and the Kingdom are perfectly aligned in wanting to build a business that generates profit for successors 30 or 50 years down the line.
“So, I’m asked to maximize value over 50 years, not over the next quarter. We’re investing £100 million in this business in the next few years. When you look at the debottlenecking and the power station together, let alone all the other projects that are going on here. We’re happy to do that because we plan to be here for decades,” he said.
“And we want to build a business which is generating profit for future generations of the Weston family, for our shareholders in London, but also actually for His Majesty. His Majesty, through TTN, has a 40% share. And I believe he is also a long-term thinker. I mean, he wants profits next year, but also in 20 years or 30 years or in 50 years for his successor. So I think our interests are very aligned. And we’re definitely not flying by night. We’ll be here for a while”.
This deep-rooted confidence comes at a time when Southern Africa is grappling with rising input costs, from diesel to fertiliser. However, the CEO remains bullish on the green gold of the region, citing population growth and impressive GDP trajectories as key drivers for increasing sugar demand.
“The long-term for sugar in Africa, though, I think is a really positive story. Across the region, sub-Saharan Africa, we see population growth, we see GDP growth. The combination of those means that demand for sugar increases,” he said. The CEO further notes that governments in Southern Africa, including the government of Eswatini, recognize that sugar is a very capital-intensive industry. “And if you want to attract investment in the sugar industry, then you need to have a high enough price to generate a profit. And governments in Africa therefore have a range of trade policies and regulations which allow us to be economic in those countries,” says Kenward.
“I think we have great brands, fewer in this country, which is a small consumer market, but in South Africa, Zambia, Malawi, Tanzania. We see Africa sugar all the way up at ABF level as one of the big growth engines for the group. And we’ll continue to invest in maximizing the profit opportunities that there are.”
ABF is essentially betting on the future of Eswatini as a primary growth engine for the entire group. The commitment goes beyond the balance sheet, it is about creating a Swazi business that provides high-value employment and contributes meaningfully to the national treasury through payroll taxes.
ABF Sugar is positioning itself as more than just an investor but a permanent partner in the nation’s industrial evolution, reinforcing the idea that for ABF and Ubombo Sugar, the journey in the Kingdom has only just begun.