How we create value

In allocating our capital to our strategy’s levers among the various value drivers, we need to consider the trade-offs between the resources available to us. The Framework categorises these resources into six capitals stocks that are affected or transformed by the activities and outputs of an organisation. All our decisions seek to maximise positive outcomes and mitigate negative impacts.

Our resources

Operating inputs

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Financial capital


The pool of funds available to Blue Label.

  • Equity capital;
  • Debt capital;
  • Working capital.
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Manufactured capital


Physical objects and infrastructure that are available to Blue Label to use for the distribution of goods and services.

  • Property plant and equipment to the value of R194 million, including:
    • R75 million vending machines and POS devices;
    • R74 million computer equipment;
    • R16 million motor vehicles.
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Intellectual capital


The knowledge-based intangibles that sustain the quality of our product and service offering, which provide Blue Label's competitive advantage. These include our innovations, collective knowledge, and systems.

  • Skills, expertise and institutional knowledge;
  • Entrepreneurial culture and agile practices;
  • Operating systems, policies, processes and procedures;
  • Reporting and communication;
  • Proprietary technology, software, and IT systems;
  • Targeted analytical processes, machine learning, and artificial intelligence.
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Human capital


The competencies, capabilities and experience of our employees and how they innovate, collaborate and align with Blue Label's objectives.

  • 2 505 permanent staff members;
  • Experienced Board, Executive, and General management;
  • Performance management system;
  • Various training courses.
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Social and relationship capital


The strength/efficacy of our relations with various stakeholder groups and networks, as well as our brand and reputation, and our social licence to operate.

  • Relationships with all stakeholder groups, including:
    • Employees;
    • Customers;
    • Shareholders;
    • Government and Regulators;
    • Partners and suppliers;
    • Media.
  • CSI initiatives
    • Trust Blu Foundation NPC;
    • Boys and Girls Clubs of South Africa.
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Natural capital


Any natural resources or environmental assets (such as soil, water, atmosphere, ecosystems) which provide a flow of useful goods and/or services, now and in the future.

  • Electricity;
  • Water;
  • Fuel;
  • Paper.

Business activities

Blue Label is a mobile technology company that specialises in prepaid products and the electronic distribution of virtual merchandise and value-added services, including the full and seamless reconciliation of billions of nano transactions.

Our products and services image

Our Company philosophy is to relentlessly drive financial inclusion for the mass market. We combine technical innovation with entrepreneurial flair to bring products and services associated with the developed world directly to the doorsteps of people who may be geographically and economically isolated from the mainstream. By doing so, we create jobs, support the growth of small businesses, and help bridge the digital divide.

Our resources

Operating outputs


Outcomes and resource trade offs

Financial capital icon

Financial capital

  • Revenue of R18.8 billion;
  • Gross profit: R2.38 billion;
  • Capital expenditure: R71 million;
  • Finance activities: R820 million;
  • Lease payments: R50 million;
  • Taxes paid R205 million;
  • Disposal of Blue Label Mexico: R191 million.
  • A strong balance sheet and sufficient working capital to fund the operations that support long-term sustainability;
  • Investments into technology, processes, and key personnel that ensure sustainability and competitive advantage;
  • Economic benefits to employees, partners, and suppliers;
  • Good stewardship of our investors' financial capital.

We leverage financial capital to invest in our business and to grow our competitive market position. This has a positive impact on human, intellectual, and social and relationship capitals. We create jobs, support the growth of small businesses, and relentlessly drive financial inclusion for the mass market.

There is an important trade-off between short and long-term investment associated with financial capital. It is important to balance the interest of short-term benefits with those of long-term sustainable growth objectives. While both are important for different stakeholders at different times, it is a key focus in our strategic decision-making process.

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Manufactured capital

Capital expenditure: R71 million.

  • Ability to deliver valuable services and solutions in response to changing consumer demands;
  • Strategically located outlets offering convenient customer access to products and services;
  • Secure and productive working environments.

By investing in equipment, outlets, and distribution capacity, we increase our manufactured capital, but negatively impact natural capital and, in the short term, financial capital.

Automation of routine tasks through technology may in the long term reduce human capital.

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Intellectual capital

  • Purchase of intangible assets: R37 million;
  • Accelerating our digitisation projects to fast track our ability to be responsive to our new environment;
  • Improved responses to changing consumer needs;
  • Brand reinforcement and market communication;
  • Accelerated deployment of new technologies;
  • Effective controls and processes;
  • Full legal and regulatory compliance;
  • Risk identification and mitigation.
  • Creative solutions increase productivity, cost savings, and synergies;
  • Proprietary systems/solutions add value and secure sophisticated contracts.

Our technical innovation and entrepreneurial drive are central to effectively serving the unbanked market segment.

Improved investment in business processes and new systems is growing our intellectual capital and indirectly benefiting our human, and social and relationship capitals, but negatively impacting financial capital in the short term.

Reduced inequalities

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Human capital

  • Excellent customer service;
  • Salary and benefits spend: R637 million;
  • Talent pipeline and learnerships in line with BLT pipeline requirements;
  • Staff retention rate: 91%;
  • Converting our entire organisation to work from home from the inception of lockdown level 5;
  • Occupational Health and Safety audit completed;
  • 70% of respondents in our Engagement Survey are content at work.
  • A vibrant, diverse, and flexible workforce, committed to the long-term success of Blue Label;
  • Improved effectiveness, skills, and expertise.

Significant people-related investments in initiatives decreases our financial capital in the short term, but positively impacts our human, social and relationship capitals. Over the longer term, this enables us to have the people and capabilities required to deliver our strategy and performance targets.

In turn, our appeal as an employer of choice and our brand value increases our intellectual capital.

Decent work
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Social and relationship capital

  • Brand reinforcement and market communication;
  • Understanding our customers;
  • Partnerships with the best providers of forward-thinking technology solutions and services;
  • CSI spend: R8.5 million;
  • Youth development and entrepreneurship programmes;
  • Computer literacy programmes for children;
  • COVID-19 relief funding.
  • Business efficiency through collaboration with producers and suppliers;
  • Building trust and respect;
  • Social relevance in the communities we operate in;
  • Brand reinforcement and market communication;
  • Sustained confidence from shareholders and investors.

Trusted, long-term partnerships with customers. Stakeholder-related investments reduce our financial capital in the short term but positively impacts our social and relationship capital. Over the longer term this enables us to have a community of stakeholders that are loyal and supportive to our brand and provide our social licence to operate.

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Natural capital

in spend 
in usage 
2021 2020
R'000 Usage R'000   Usage
Electricity (kWh) 3 400 2 118 538 3 305   2 457 984 (14)
Water (kl) 520 9 955 495* 11 742 (15)
Petrol (l) 7 321 486 130 8 494   537 723 (14) (10)
Diesel (l) 884 54 811 752   45 775 18  20 
Paper (kg) 127 5 836 110   6 145 15  (5)
* The prior year number has been restated to include an under-charge that was corrected in the current financial year.

The combined effort of environmental awareness and the impact of COVID-19 saw a significant decrease in the usage of all natural resources.

  • Responsible management of waste and emissions;
  • Focus on sustainable use of our resources.

While certain business activities impact our natural capital (for example, use of fossil fuels and related emissions), these positively impact the human, social and relationship, and financial capitals.

We are aware of the environmental impacts of our operations and activities and focus on the responsible use of resources. Blue Label views digital products and services as having significant potential to deliver positive environmental outcomes.