As we celebrate 25 years since the formation of Ukuloba, we are once again, reminded that the challenges in the SA fishing industry are real. From the original investment of R100 in 1999 out of which Ukuloba evolved to where it currently stands has been a long road, mixed with many successes and some failures, but all the way blessed by God, although sometimes in ways we do not always understand.

When it was formed in 1999 with 8 long-serving staff and Mongezi Vika and Thobile Bhaku, who could have predicted where it would go or the path that it would follow.

Ukuloba started by purchasing a controlling stake in DMA Fishing Enterprises and D Chirsty and Sons. The first years were difficult, trying to raise funding before the BBBEE. Act was even contemplated in an industry where its very nature is erratic and being dependent on any one sector is a recipe for heartache.

We succeeded though, with the unwavering support of the original shareholders in DMA, Andrew Kaye, Greg Christy, and Mark Christy. They need to be recognized for initiating an empowerment transaction and then allowing the empowerment company the space and financial flexibility and support to succeed and then move on.

Move on we did, steadily building value, developing our business model, adopting a long term approach to investment and finding the balance between growth and shareholder needs. Looking back, the original investment of R100, while taking 10 years before it started generating any dividends, has since then passed on and continues to generate significant value back to the shareholders.

We had the support of others along the way – Business Partners, Kaytrad Commodities and Viking Fishing to name a few. Our internal team also played a huge role and our memoriam page pays tribute to some of our directors and shareholders who have been with us on the journey. Zola Madyaka, previously head of the Eastern Cape Fishing Forum in the 1990’s, joined in 2001 and was our Chairman from then until he passed away in 2022. Errol April was involved in the fishing industry from 1979 and was our first director and remained fully involved until his passing in Feb 2024. Ursala Jonkers ran the QC in the factory from 1990 until 2012 and remained on the board until her passing in 2018. Christopher “Rasta” Mbilane and Maphita “Petros” Jafta were two of our original squid crew and Albert and Angeline Windvogel and Mona Grootboom also worked in the factory. Each one of them played their role in the group and in bringing us to where we are now and their families continue to be involved as shareholders and to share in the fruits of what they started.

 So where are we now? With the 2021/22 FRAP process completed we have faced our challenges, losing the third largest hake longline right, which we had built up over time from 1999, due to an error in the initial FRAP process which was not corrected on appeal. We have just launched our first court challenge in order to get that rectified. Beyond that our involvement in squid is still under pressure due to the loss of 15% of our permits to small-scale in 2021 and the current catch levels being at their worst ever. These are all issues that we believe will be resolved.

We expect to regain the longline hake, and on the squid side, we will continue to persevere, praying that clarity over the small scale will be reached so that we can all move on with certainty and that the squid will find its way back home.

Beyond the challenges, our investment into a marketing arm has borne fruit and we expect to continue growing the business through that, which is less dependent on fishing rights, and through our investment arm which we are busy developing.

On the investment side we are looking to diversify beyond fishing and are open to partnering in empowerment transactions with companies with similar values. Our faith and integrity and the need for transparency will underpin any such growth and we can bring our financial expertise and many years of experience in developing joint ventures and building win-win structures to any potential investment. Being a staff-based empowerment entity we are also always happy to assist in developing staff empowerment structures and sharing some of what we have learned over the years.

With our track record being strong enough and our board of directors having worked together for many years and having the skills to take us forward we are looking to a private listing in the near future on an exchange where we can retain our 100% black ownership status (required in order to retain our fishing rights) while allowing our existing shareholders to access some of the value they have built up and giving other investors the opportunity to join us in the next 25 years of our journey.

We give thanks to God and to our faith in Jesus for carrying us through and guiding our path over the past 25 years and we pray that in all we do He will bless and guide the paths of our business, shareholders and staff into the future.

The Board
March 2024