OUR STRATEGY

Context

ACSA is committed to creating and delivering shareholder value, guided by our statutory mandate; to acquire, establish, develop, provide, maintain, manage, control or operate any airport or related facility. This mission is carried out in collaboration with key stakeholders to ensure the efficient and effective functioning of our airports.

Customer and stakeholder value creation for ACSA must be viewed through the lens of the company’s role in facilitating trade and tourism, with our airports serving as gateways in and out of destinations. As a regulated entity, ACSA’s aeronautical activities are subject to economic regulation. However, through our non-aeronautical business value propositions, the company continues to enhance its market competitiveness with the aim of increasing customers’ willingness to pay for the services and/ or products offered through partners.

During the reporting period, ACSA invested significant resources to enhance its marketing strategy, supported by extensive market research, particularly in areas such as sustainability and customer experience, to refine the company’s offerings.

In the post-Covid-19 era, the company’s primary focus has been on embedding a revised operating model and implementing an effective change management programme. Furthermore, operationally, ACSA intensified efforts to catch up on infrastructure maintenance and refurbishment backlogs to stabilise and enhance airport efficiencies, despite these efforts being constrained by limitations on capex during the reporting period.

A core theme throughout the three strategic timeframes defined by the company’s strategy is the diversification of the traditional business model, which will continue to be an area of focus during the Corporate Plan period. The company aims to unlock value from non-aeronautical and non-core revenue activities through the insourcing of relevant airport activities previously performed by third parties on its airport platforms. This approach, pursued in the short, medium and long term, supports ACSA’s growth and sustainability objectives through 2030 and beyond. By seizing these opportunities, the company aims to enhance operational efficiencies, bolster diversification efforts and ensure the resilience and sustainability of ACSA’s overall business model.

Despite these challenges, the company’s actions have solidified its performance trajectory and laid a strong foundation to support the Corporate Plan’s strategic focus on sustainable growth driven largely by innovation.

ACSA’s commitment to value creation, coupled with our strategic focus on innovation and sustainability, positions the company to continue driving growth and delivering superior value to its customers and stakeholders.

An outline of the strategy and the timeframes defined within it is given in the table below.

Our strategy at a glance

The focus areas for each strategic pillar of our business are:

Review of the reporting period

Overview

As the 2025 financial year begins, the Company is progressing from the initial phase outlined in our strategy to the second timeframe, placing a strong emphasis on innovation as a catalyst for sustainable growth. This underscores the Company’s recognition of the shifting competitive landscape, market conditions and consumer behaviours, all of which play pivotal roles in the ongoing evolution of the global airport industry.

As the company advances into the second phase of its strategy with a refined strategic focus, the execution of ACSA’s Global Strategic pillar remains pivotal in enhancing ACSA’s global competitiveness. This involves actively seeking opportunities across Africa for exportation of ACSA’s services and expansion of alliance network for robust business development.

This dual strategic approach not only shapes our own trajectory but also contributes to broaden transformation and growth within the aviation industry and across the African continent. We understand that innovation and community-centred growth serve as catalysts for transformative change and inclusivity, extending beyond mere technological advancements. Therefore, insourcing of key relevant airport activities is poised to catalyse and facilitate the involvement of small and medium enterprises (SMEs) in the airport value chain.

This evolution positions ACSA not only as a provider of air transport infrastructure and facilitator of people and goods, but also as an engine driving transformation and growth. It underscores the Company’s unwavering commitment to embracing the future while upholding its core operational values of safety, security, efficiency and inclusivity.

Realising our vision

To achieve its vision, ACSA will continue focusing on effective and efficient implementation of key business and operational interventions outlined in the Corporate Plan. These interventions involve insourcing of aviation security to enhance the protection of aviation infrastructure against unlawful interference, streamlining of ground and cargo handling operations, and rationalisation of general aviation processes and supporting facilities to ensure compliance with civil aviation safety and security principles.

Additionally, ACSA’s goal is to establish a comprehensive cargo and logistics infrastructure, capitalising on the opportunities presented by the African Continental Free Trade Agreement (AfCFTA), to foster growth.

The success of our strategy, underpinned by its strategic pillars, hinges on an efficient organisational design and capacity development to ensure successful execution.

The foundational strategic pillars, guided by the GFOM, include the Capability Model and People and Culture, ICT, Innovation, Growth, Global, Commercial and Stakeholder Management. These pillars collectively empower ACSA to navigate the post-pandemic era and drive sustainable growth. Further details are given in the relevant sections of this report.

Furthermore, recognising the resilience of cargo operations, especially in times of crisis, we have significantly updated our Cargo strategic pillar since 2021 as a crucial component of our strategy. This is aligned to our overall mandate and strategic focus and is especially designed to take advantage of developments in e-commerce.

In our pursuit of sustainable non-aeronautical revenue growth, we continue to work within the framework of our Aerotropolis pillar, which provides for the development of three aerotropolis and six smart airport cities. This is expected to stimulate logistics and real estate development, and foster economic growth for areas and communities around our airports. Supported by our Innovation pillar, the Aerotropolis positions ACSA as a nucleus for greater integration into the broader Metropolitans and regions for sustainable development and growth as well as enhancing global competitiveness.

In addition, we continue to review and update our Ground Handling and Fuel strategic pillars to ensure alignment with the operating and competitive landscape, consistent with ACSA’s mandate as set out in the Airports Company Act and related amendments.

During the reporting period, we reviewed and updated our Commercial strategic pillars to enhance our ability to create and deliver sustainable value to our shareholders and key partners. Additionally, we updated our Marketing and Communications strategic pillars to align with our Passenger Experience and Mobilisation pillar. This update aims to encourage township and lower Living Standards Measure (LSM) customers to view airports not just as facilities/infrastructure for the elite but as vital platforms for economic opportunities and facilitators of efficient travel. These efforts are geared towards fostering transformation, inclusive growth and economic development.

ACSA is committed to addressing key pain points for travelers and airport users to ensure seamless flow in and out of our airports. This includes upgrade of self-service systems, security and facilitation systems, and parking facilities. Additionally, key infrastructure such as modernising and integrating public transport facilities, which will feature relevant retail offerings to promote local cuisine and content will also get an upgrade. Significant improvements are planned for our coastal airports, including upgrades to the domestic terminals at George, Chief Dawid Stuurman International, and Cape Town International Airport over the next two to four years to alleviate congestion and enhance the overall airport experience for travelers.

At the core of our strategy is unlocking economic opportunities across our network airports, with a particular emphasis on encouraging the participation of SMEs as drivers of economic growth and job creation. This involves localising key inputs into our business by sourcing from local suppliers, aiming to create jobs and improve living conditions of South Africans, thereby enhancing South Africa’s global competitiveness. We are committed to creating economic opportunities for youth, women, and people living with disabilities across our network of airports.

Furthermore, we are positioning our ICAO and ACI accredited ACSA Training Academy to establish it as a leading provider of aviation training on the continent. Through strategic partnerships and collaborations, we aim to offer comprehensive training services to meet the evolving needs of the industry.

As we navigate the global competitive landscape ACSA’s commitment remains steadfast in maximising value for shareholders and partners while delivering exceptional service to our customers. To this end ACSA’s contribution to the development of aviation in the region plays a pivotal role in our country’s economic development and act as an engine for trade and tourism growth on the continent.