Integrated Annual Report 2021
Integrated Annual Report 2021

About our integrated annual report

The aim of our Integrated Annual Report is to provide our stakeholders with a concise and transparent assessment of Massmart’s ability to deliver value to its stakeholders over the short (one year), medium (two to three years) and long term (three to five years).


Reporting scope and boundaries

This report covers the primary activities of Massmart’s Wholesale and Retail operations in 13 sub-Saharan countries and the key functions over which we exercise control. Published annually, it provides material information relating to our strategy, future prospects, business model, operating context, stakeholder engagement, risks, governance and operational performance for the period 28 December 2020 to 26 December 2021. Both financial and non-financial data are aligned to the same financial reporting period allowing for comparison of performance data.

During the period, the Board made the decision to divest the Group’s Cambridge, Rhino and Massfresh (comprising The Fruitspot and a meat processing facility) assets. Following this, the Cambridge, Rhino and Massfresh businesses have been classified as one disposal group and reported as discontinued operations in terms of IFRS 5. As such, the information contained in this report relate to continuing operations only, unless stated otherwise.

Information on anything material that took place after 26 December 2021 and up to the date our Board approved this report has also been included.




Reporting frameworks

This report is prepared in accordance with:

  • The International Integrated Reporting Council’s (IIRC) International <IR> Framework
  • International Financial Reporting Standards (IFRS)
  • King IV™ Report on Corporate Governance for South Africa 2016 (King IV)
  • JSE Limited (JSE) Listings Requirements
  • Companies Act No 71 of 2008, as amended (Companies Act)
  • United Nations (UN) Sustainable Development Goals (SDGs)


Strategy and outlook

This report covers the progress we have made against our strategy during 2021 and provides insights into our strategy going forward.

Outlook information can be found throughout this report; however, the majority of this information can be found in the following sections of the report: delivering a best-in-class Supply Chain network, building a world-class omnichannel offering, message from our Chairman, Board Committee feedback, strategic review and our performance.


Our approach to materiality

We apply the principle of materiality in assessing what information should be included in our Integrated Annual Report, as it has the potential to influence the decisions of our stakeholders.

Our materiality identification process involves the identification of matters that have the potential to affect our ability to create value over the short, medium and long term. Material matters considered are based on a combination of our stakeholder engagement processes, risk management and the Group’s strategy. These matters are considered and critically reviewed by key members of our Executive Committee and ultimately signed off by the Board.



Through our responsible approach to business we are able to contribute to the UN SDGs. We have identified 12 of the SDGs to which we believe we can make the most meaningful contribution.



Combined assurance

Our combined assurance model has been established to enable an effective control environment, support the credibility and integrity of information used for internal decision-making and support the credibility and integrity of our external reports. While the Board is ultimately responsible for our internal control processes, our combined assurance model incorporates five lines of defence, each with their own assurance role:

  1. Corporate and local management
  2. Specialist departments
  3. Massmart Internal Audit Services
  4. External audit and other independent assurance providers
  5. The Board, supported by sub-Committees


Type of assurance Assurance and monitoring
Auditing of our Group and Company Annual Financial Statements External auditors: Ernst & Young (EY)
Material sustainability information External assurance providers: GCX Africa – Emissions and renewable energy data
  External assurance providers: Honeycomb BEE Ratings – Broad-Based Black Economic Empowerment (B-BBEE) scorecard
Corporate social investment, sustainability and human capital performance indicators Massmart Internal Audit Services
Execution of our combined assurance plan and reporting Execution monitored by the Audit Committee, which reports to the Board quarterly and to shareholders annually (audited consolidated Group Annual Financial Statements)