Annual Report 22

2021 – 2022


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As of 01 June 2022, ITHUBA has generated sales in excess of R43.4 Billion during the seven years of its successful tenure as the proud operator of the South African National Lottery.
A journey that has been filled with enormous success, made possible by your support. Thank you!
TM
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CONTENTS
EXECUTIVE OVERVIEW 4 CHAIRMAN’S STATEMENT 5 GROUP CEO’S STATEMENT 6 WHO WE ARE 7 BOARD OF DIRECTORS 9 BUSINESS PARTNERS 11 CELEBRATING EXCELLENCE IN GAMING 13 EXECUTIVE MANAGEMENT 17 HUMAN CAPITAL 18 MARKETING 19 JACKPOT WINNER STORIES 23 CORPORATE SOCIAL RESPONSIBILITY 25 FINANCIAL REPORT 31 CONCLUSION 32
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EXECUTIVE OVERVIEW
ITHUBA celebrates notable milestones over the past
12 months, culminating with record-breaking sales of over R7.1 Billion and a contribution of over R1.6 Billion to the National Lotteries Distribution Trust Fund (NLDTF), 3.1% ahead of target. During 2021, ITHUBA was awarded the Africa Lottery Operator Award of the Year by Gaming Intelligence, and the Group CEO, Mrs Charmaine Mabuza was nominated as one of the top 10 most influential women in gaming by iGaming Business. This seventh report showcases ITHUBA's excellence and demonstrates formidable resilience through tough economic conditions propelled by the pandemic. Despite these challenges, ITHUBA continues to thrive, to innovate and to make a significant contribution to business and society.


CHAIRMAN’S STATEMENT
MR MOLEFE SETH PHALATSE
I am honoured to report on ITHUBA’s seventh year of operating the South African National Lottery. This year has without a doubt lived up to the track record of excellence that we have upheld since the first year of operations.
In an extraordinary year, we achieved yet another record- breaking performance, with our sales recorded at over
R7.1 Billion. Once again, we have achieved what no other operator has been able to. We remain the top performing operator in the history of the South African National Lottery.
I am proud to lead a team of dedicated individuals who exemplify and uphold the values of tenacity and achievement.
I am equally gratified to lead alongside a leader, a change activist and a trailblazer in her own right, the Group CEO, Mrs Charmaine Mabuza. She was recognised as one of the Top 10 most Influential Women by the iGaming Business. We view this recognition as a significant demonstration of the impact ITHUBA has made in the lottery industry, particularly because the global gaming sector is characterised by a small number of women in leadership and ownership positions. We remain pioneers whose stellar performance has rightfully claimed a place for Africa on a global scale.
It is this remarkable performance that contributes to our victories. The levels of excellence and dedication to superior performance and our achievements are not ours alone, but collectively the community we serve. I urge all of you to remain steadfast in remembering our mandate which is to raise maximum funds that are used to improve the socio-economic status of our people and collectively, our country.
Once again, we have raised the bar and set a new standard.
As we enter the new financial-year, may we continue to thrive and deliver on our mandate with superior performance and excellence. I look forward to continue leading you to honour our mandate with pride.
MR MOLEFE SETH PHALATSE
Chairman
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GROUP CEO’S STATEMENT
MRS CHARMAINE MABUZA
The 2021/2022 financial year has been a fruitful year for ITHUBA. Despite the economic depression that unsettled our country, we were able to achieve remarkable milestones.
Our notable sales record of R7.1 Billion saw us contributing over R1.6 Billion to the National Lotteries Distribution Trust Fund (NLDTF), exceeding our target by 3.1%. This is characterised by our commitment and comprehension of our responsibility to operate a successful South African National Lottery that benefits society and the economy.
Our success is attributed to our impeccable, world-class innovative approach to the South African National Lottery. With the convenience of our players in mind, we have created multiple digital platforms where players can purchase South African National Lottery tickets. ITHUBA was the first lottery operator
to introduce the National Lottery Mobile App, giving our players the opportunity to play anytime and anywhere on their mobile phone. We have a successful relationships with all four major banks in South Africa namely, Absa, Standard Bank, Nedbank
and FNB, where players are able to purchase their tickets on
the digital platforms. No other operator in the world sells
lottery tickets through partnerships with banks. Like many other milestones, we are the first to create this incredibly effective technological opportunity. Our partnership with these four major banks in South Africa has played a critical role in increasing our sales. Ticket sales via the banking platforms contributed over 40% towards sales.
We are passionate about localising games specifically for the South African market. Games such as LOBOLA CASH, FAFI FORTUNE and STOKVEL CASH under the EAZiWIN instant game portfolio, drive affinity and brand love. LOTTO remains the flagship game with over 98% spontaneous awareness, while PowerBall is the top performing game in the South African National Lottery portfolio, reaching four major jackpots of over
R100 Million during the 2021/2022 financial year. It is fulfilling to see the lives of players changed by winning the massive jackpots. In the 2021/2022 financial year, the biggest winner bagged a R167 Million PowerBall jackpot in February 2022. This jackpot
is the second-highest to ever be won in the history of the South African National Lottery, and forms part of the top 10 largest, all of which are under ITHUBA.
We operate in a fast-paced sector that keeps us on our feet at
all times. But no matter how busy we are, our value of Ubuntu inspires us to pause and evaluate how we can help better the lives of marginalised members of society. Through our high- impact CSI programmes, we have touched many lives through the Supplier and Enterprise Development programmes, scholarships and several other CSI interventions, in order to better the lives of communities in which we operate.
We are constantly exploring ways in which we can develop and continue breaking our own records. I am pleased to report that in partnership with Paytronix Systems, we are in the final stages of development and testing of a localised Lottery System – a first African innovation that is set to be a game changer. All of these milestones are proof that with dedication, resilience and hard work, we can achieve unimaginable success. The entire ITHUBA team is truly a force to be reckoned with, I am grateful for all of you. Let us continue to work as a team, and to always
win, together.
MRS CHARMAINE MABUZA
Group Chief Executive Officer 6


WHO WE AR?E
ITHUBA, a privately owned South African company founded by Zamani Holdings, is the current proud operator of the South African National Lottery. ITHUBA was awarded the third license to operate the South African National Lottery on 01 June 2015.
Through its extensive expertise and management, ITHUBA has successfully reinvigorated the South African National Lottery, becoming one of the world’s leading lottery operators, as recognised by the World Lotteries Association (WLA). ITHUBA has a strong focus on the growth strategy and development of expertise in the gaming sector and will continue to drive technology and the landscape of the South African National Lottery by providing more opportunities and convenience for players to play anywhere, anytime. ITHUBA is a 100% black-owned business, led by a female Group CEO, Mrs Charmaine Mabuza.
OUR VISION
ITHUBA aims to reinvigorate the South African National Lottery through optimising the consumer experience, restoring faith and trust in the South African National Lottery, and showcasing its positive social contributions to our society. While proudly rooted in South Africa, ITHUBA's vision is to set the benchmark for lottery operations in South Africa and beyond.
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OUR MISSION
Our company mission is to contribute positively and actively to socio-economic development, through ethical and efficient operation of the National Lottery, in a manner that will engender a spirit of pride among its shareholders, key strategic partners and staff.
UBUNTU
HUMILITY
TENACITY
BEST PRACTICE
ACHIEVEMENT
INTEGRITY
OUR VALUES
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BOARD OF DIRECTORS
MR MOLEFE SETH PHALATSE | CHAIRPERSON
Mr Seth Phalatse has over 50 years’ experience in corporate and executive management, with business interests primarily in international organisations, and other South African blue chip companies.
He served as an Executive Director for 24 years at BMW South Africa, as well as a further 10 years as Non-Executive Director. His Directorate positions also spans into other entities: The Institute for Global Dialogue – A research institute that promotes international cooperation and policy analysis on the changing political environment in South Africa. Some of these other entities: Johannesburg - Philharmonic Orchestra. Mr Seth Phalatse is also the past President of the Southern African-German Chamber of Commerce and Industry. He holds a Non-Executive Directorship at Vertiv South Africa.
His legacy of Chairmanship is long standing and cuts across industries as he currently serves as a Non- Executive Chairman at Creation Capital, at First Mayibuye Invest and at Stockhouse Capital.
Most notably, Mr Seth Phalatse is currently the Chairman of the Thabo Mbeki Presidential Library Fundraising Committee. In terms of the gaming sector, Mr Seth Phalatse also brings a wealth of experience and expertise, as he is no stranger to the lottery industry, having served as a former Director of Uthingo, South Africa’s first National Lottery operator.
MRS CHARMAINE MABUZA | GROUP CHIEF
EXECUTIVE OFFICER
Mrs Charmaine Mabuza is an acclaimed business leader who was recently named one of the Top 10 Most Influential Women in Gaming, globally. As Group CEO of ITHUBA, together with her leadership team, she has revived and demonstrated the mandate of reinvigorating the South African National Lottery. During the seven years that Mrs Charmaine Mabuza has been at the helm of ITHUBA, the South African National Lottery brand has experienced a 360° change in terms of gaming innovation and operational processes that positively and actively contribute towards the betterment of South African National Lottery players. Mrs Charmaine Mabuza has occupied several notable leadership positions namely: Managing Director
of Empilweni Pay-out Services (Pty) Ltd, a company that successfully carried out the task of distributing social grants in South Africa. Mrs Charmaine Mabuza was also a Director at Whiphold, the first women’s empowerment group to list on the JSE.
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MS THULISILE-NJAPA MASHANDA | DIRECTOR
Ms Thulisile Njapa-Mashanda is the founder of an accounting and auditing firm, and serves on various audit committees. She is Chairperson of the Finance, Risk & Audit Committee (FRACO) with over 20
years’ experience in financial management. During her career, she has worked with large multinational organisations and parastatals in South Africa and abroad. Ms Thulisile Njapa-Mashanda is a member
of the South African Institute of Chartered Accountants (SAICA) and is a registered auditor with the Independent Regulatory Board for Auditors (IRBA). Her wealth of experience in the financial sector, makes her an ideal contributor to ITHUBA’s Board of Directors.
MR MPHO BAATJIES | DIRECTOR
Mr Mpho Baatjies is a seasoned business strategist, who has worked on various critical projects in Europe, South America and the Middle East. As a qualified Chartered Accountant registered with the South African Institute of Chartered Accountants (SAICA), Mr Mpho Baatjies is currently the Group
Chief Financial Officer (CFO) at the Gauteng Growth and Development Agency. He drives economic development programmes through the facilitation of trade and investment for the Gauteng province. Mr Mpho Baatjies also wears the hat of a social philanthropist, as he is involved in several social empowerment and youth development programmes, in addition, he also assists with distress alleviation for underprivileged communities.
MR WILLIAM SCOTT | DIRECTOR
Mr William Scott is strategically positioned as a Board Member at ITHUBA, and is significantly experienced in contributing to ITHUBA’s high-level requirements. This is due to his experience in the regulated international gaming industry, which spans over 20 years, which includes his position as a Non-Executive Director for other gambling and lottery companies around the world. Mr William Scott spent 15 years at an internationally esteemed lottery and gaming company. Prior to taking on this role, Mr William Scott was also Vice President of Corporate Development. He brings to ITHUBA his international framework of lottery best practices, complimented by his financial skills as a Chartered Accountant.
"I know what it feels like if somebody opens a door and you manage to run through. Often you just need somebody opening that gap, and giving you that chance to be able to walk or run"
MRS CHARMAINE MABUZA
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ADVOCATE ERIC MABUZA | DIRECTOR
Advocate Eric Mabuza is an astute businessman with directorship positions in various organisations, including the Mpumalanga Growth Agency. He has extensive experience in law, and other commercial business entities. Advocate Eric Mabuza is one of the founding members of Empilweni Payout Services and Zamani Group of Companies. His passion for the business world spills over to philanthropy and social causes. Advocate Eric Mabuza is one of the founders and Director of the Eric and Charmaine Mabuza Foundation, an NPO established in 1999 to champion underprivileged communities and school children. In terms of his journey into the field of law, Advocate Eric Mabuza graduated with a B Proc Degree from the University of the North. He completed his LLB at the University of the Witwatersrand and earned the distinction to obtain a Diploma in Trial Advocacy from Harvard University in the United States of America. He followed this with an LLB from Georgetown University Law Centre in Washington DC.
MRS ROÈ SENAOANA | DIRECTOR
Mrs Roè Senaoana is a qualified Chartered Accountant with the South African Institute of Chartered Accountants (SAICA) with a Diploma in Integrated Reporting. She has over 10 years' experience in both the external and internal audit environment. Mrs Roè Senaoana's skilled expertise has been gained during her tenure in the manufacturing, retail, and the motor industry. Mrs Roè Senaoana is currently the Internal Audit Manager at the National Empowerment Fund (NEF), where she is responsible for defining strategy, development and the implementation of the risk-based strategic internal audit plan.
BUSINESS PARTNERS
ITHUBA believes in winning partnerships and as such, maintains good stakeholder relations with the partners that contribute significantly in making ITHUBA the company that it is today. These are the business partners that stand with us in our seventh year of excellence.
DEPARTMENT OF TRADE INDUSTRY
AND COMPETITION (DTIC)
The Minister of the DTIC appoints the Board of Directors at the National Lotteries Commission (NLC), which is the Regulator to ITHUBA, the operator of the South African National Lottery. The DTIC is tasked with promoting structural transformation and providing a predictable, competitive and equitable environment which encourages trade, investment and enterprise development along with sustainable growth. The aim of these programmes is to promote industrial development, investment, competitiveness and
job creation. The Department is also tasked with building trade relations and facilitating broad-based economic participation in a fair regulatory environment.
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NATIONAL LOTTERIES COMMISSION
The NLC is the regulator of the South African National Lottery, and its mandate is to regulate all Lotteries and sports pools with integrity to ensure that the protection of all participants is realised through the activities of the Regulatory Compliance Division. The NLC’s regulatory mandate continues to be one of the main priority areas, focusing on monitoring compliance and performance of the South African National Lottery operator with the Amended Lotteries Act and Licence Agreement. The NLC also understands
that South African National Lottery operates within a dynamic environment that is characterised by the rapidly changing technological advancements, and a competitive gaming industry that is subject to the entry of new and innovative gaming modes, as well as constant changing gaming attitudes and behavioural patterns among the players. In this regard as such, the NLC keeps abreast of the technological changes to be proactive and innovative in terms of product development and remain relevant and competitive in the Lottery market.
BUSINESS PARTNERS
To navigate the complex operational requirements of the South African National Lottery, ITHUBA sought the involvement of the best technology partners available in the industry. ITHUBA requires robust and reliable technology to successfully deliver on its strategy, which is why we deploy advanced systems, ensuring that players are not compromised
in any way and that the South African National Lottery runs efficiently and effectively. Our partners are experts in their fields and they include Paytronix, Vodacom, and MTN. ITHUBA’s technology partner, Paytronix Systems is an established, strategic Information and Communications Technology (ICT) Solutions Provider offering specialised ICT services to the lottery and gaming sector.
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CELEBRATING OUR EXCELLENCE IN GAMING
OUR MILESTONES & HIGHLIGHTS
ITHUBA is proud to recognise the following noteworthy achievements during this financial year:
R7.127 BILLION
Record breaking annual sales, 2.9% over target
R1.641 BILLION
Record NLDTF contributions, 3.1% ahead of target
FOUR POWERBALL JACKPOTS
Greater than R100 Million
POWERBALL
The move of the draw show in June 2021 back to eTV
STOKVEL CASH
The launch of a new EAZiWIN on-line game in December 2021
R63.9 MILLION
A LOTTO jackpot won
B-BBEE LEVEL 1
PLS CENTRAL GAMING SYSTEM
Final development and testing
DAILY LOTTO
Game launch on the FNB Channels
SPORTSTAKE 4, RUGBY and SPORTSTAKE CRICKET Launch of three new SPORTSPOOL games on-line
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ITHUBA ACCOLADES
WLA LEVEL 1 CERTIFICATION FOR RESPONSIBLE GAMING.
WLA RECOGNITION AS ONE OF THE TOP FIVE LOTTERY OPERATORS IN THE WORLD.
2021 WINNER OF AFRICAN LOTTERY OPERATOR OF THE YEAR.
2021 TOP 10 MOST INFLUENTIAL WOMEN IN GAMING.
GROUP CEO, MRS CHARMAINE MABUZA HAS WON SEVERAL AWARDS WITH BOTH LOCAL AND INTERNATIONAL RECOGNITION.
Since 2015, ITHUBA’s Group CEO, Mrs Charmaine Mabuza has been honoured with various awards for excellent work as a leader of the South African National Lottery, as well as for her philanthropic, life- changing work. These awards add to numerous others Mrs Charmaine Mabuza has accomplished even before the formation of the successful third South National Lottery operator.
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EXECUTIVE MANAGEMENT
MR ALMERO du PISANIE |
CHIEF FINANCIAL OFFICER
A dedicated and accomplished Chief Financial Officer with extensive experience in Financial Management, Budgeting and lottery Management, with an outstanding service record. Mr Almero du Pisanie is adept
at multi-tasking, and is able to handle numerous entities accounts and projects with professionalism and accuracy. He holds an Honours Degree in Computations.
MS ZAINAB SERIA | LEGAL, COMPLIANCE AND
AUXILIARY SERVICES
Ms Zainab Seria has provided specialist Legal, Regulatory Compliance and Public Relations expertise to various clients over her 14 year career. She holds an LLB qualification from the University of Western Cape, Practical Legal Training from the University of Cape Town, an Advanced Labour Law Diploma with distinction from the University of North West. Ms Zainab Seria is currently studying towards a Management qualification through the Gordon Institute of Business Science (GIBS).
MS NIMEE DHULOO | HUMAN RESOURCES
Ms Nimee Dhuloo, a Business and Human Resources Coach, and has over 34 years experience in Business and Human Resources, with a collective 5 years' experience within the lottery sector. She is a Masters Level HR Professional with the South African Board of People Practices, and a Lead Auditor on South African HR Standards Evaluation. She holds a Masters in Management Science, majoring in Human Resource Management through the University of Liverpool in London.
Ms Nimee Dhuloo has played various roles in different business sectors ranging from Executive Director, Executive Manager, to Head of Talent and Lead Engagement Director.
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MRS JOY DIPHOKWANA | INFORMATION TECHNOLOGY
Mrs Joy Diphokwana has over 20 years of management experience, of which 15 years is in technology. She leads a dynamic team of technical specialists ranging across all disciplines within the Information Communication Technology (ICT) environment.
Mrs Joy Diphokwana is an integral part of the ITHUBA executive team and a strategic technology advisor. She played a leading role guiding the exciting development of the Paytronix Lottery System (PLS). This ground breaking Central Lottery System is a game changer within the lottery industry and sets ITHUBA apart from other lottery operators across the world.
Under her leadership, the ICT team provides extensive support and expertise to enable ITHUBA to operate the South African National Lottery.
MR BRENDAN BURNS | CHIEF LOTTERY DIRECTOR
Mr Brendan Burns is a Business Development and Marketing Specialist with over 20 years of international lottery experience. Prior to joining ITHUBA, he held various senior positions within these international companies. Mr Brendan Burns experience was an invaluable resource during ITHUBA’s bidding process for the South African National Lottery licence. His roles included setting up and managing ITHUBA’s daily operations, driving the strategic direction and leadership to all senior staff, as well as maintaining compliance in relation to the requirements of the South African National Lottery Licence.
HUMAN CAPITAL
At ITHUBA, we pride ourselves in on-boarding the most competent and highly skilled individuals that complement the nature of our business. Our employees and dynamic management team make the organisation what it is, with
each department contributing significantly towards the daily management of ITHUBA. Our executive management team are experts within their various fields, with a wealth of experience to oversee their portfolios.
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MARKETING
Our in house marketing and design team create relevant content and communication that informs, educates and excites players with HUGE life changing jackpots. Whether it’s a game of skill like with SPORTSTAKE, or life changing jackpots from LOTTO or PowerBall, or to instant winning with EAZiWIN, the National Lottery brand offers more changes to play more, win more and enjoy more. On average each week over 100 different pieces of content are shared across TV, radio, digital and outdoor.
BIGGEST JACKPOT WINNERS - TOP PERFORMING GAME
PowerBall has played a pivotal role in reaching business targets, breaking its own records and produced four jackpots in excess of R100 Million.
BIGGEST JACKPOT WON
The HIGHEST JACKPOT WON WAS R167 MILLION IN FEBRUARY 2022, this jackpot is also the second highest jackpot to ever be won in South Africa since inception of the South African National Lottery.
Below are additional PowerBall jackpots won during the year.
R56,353,300 MILLION
2 winners won the PowerBall jackpot on 04 May 2021
R100
R158,035,647 MILLION
3rd highest PowerBall jackpot won on 27 July 2021
MILLION
PowerBall Guaranteed jackpot won on 16 November 2021
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SPORTSTAKE 13 AND SPORTSTAKE 8
SPORTSTAKE SPORTSPOOL GAMES
Three new exciting SPORTSPOOL games were added under
the SPORTSTAKE portfolio for sporting fanatics. SPORTSTAKE 4, SPORTSTAKE CRICKET and SPORTSTAKE RUGBY were launched in November 2021. The games encourage sports lovers to predict
the outcomes of the pooled fixtures for their chance to "BE INJA
YE GAME" and win big jackpots. The games rely on knowledge and some level of skill. They naturally appeal to a niche market who belong to social media communities where they engage like-minded players.
Recovery of available fixtures had a positive impact on
player engagement. The highest SPORTSTAKE jackpot of
over R1.8 Million was won on 28 February 2022. To drive further engagement, ITHUBA ran ‘a second chance to win’ competition which was launched during October 2021. Players stood a chance to win 1 of 12 prizes which consisted of a smart TV and a DSTV decoder with a 12-month subscription.
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DAILY LOTTO
DAILY LOTTO has been part of the South African National Lottery game portfolio since 2019 and now contributes to over 10% of total sales. Due to the success of the game, the banking partners extended their offering to include DAILY LOTTO on the banking Apps with Nedbank going live in April 2022.
EAZiWIN
STOKVEL CASH
EAZiWIN launched a new game, STOKVEL CASH, in December 2021. This coincided with the period when members belonging to Stokvels in South Africa, receive their pay- outs in the form of money or groceries. From as little as R3, players could spin the online- wheel for their chance to win a share of
R4.4 Million in cash prizes. The game quickly became a favourite among players. The financial year concluded with Stokvel Cash being one of the top performing
EAZiWIN games.


POWERBALL JACKPOT SOCIAL MEDIA CAMPAIGNS
In order to create brand love and support sales, we launched two social media influencer campaigns under the hashtags: #PowerBallVoiceChallenge and #PowerBall. These campaigns were aimed at creating excitement among players around the PowerBall jackpot, and to encourage play. Participants had to buy a PowerBall ticket, record a video of themselves advertising the next jackpot and post it on Twitter and Instagram. Social media influencers, players and those wishing to one day win the jackpot took to social media platforms to participate. Twitter influencers created bespoke content to drive the jackpot awareness. Both campaigns trended on Twitter in the top three, driving high engagement and conversation. In March 2022, PowerBall and PowerBall PLUS jackpots rolled to a total guaranteed jackpot of R120 Million.
SISONKE KULE GAME
The Sisonke Kule Game (which means: “We’re together in this game”) campaign was developed as a celebration of our players. In order to drive high engagement, on-line Players were offered the opportunity to win their share of R1 Million in deposit matches when playing on the South African National Lottery website or Mobile App. The campaign was supported with full through-the-line advertising that showcased the relatability of players with a common goal of winning.


EAZIWIN ON-LINE
The EAZiWIN on-line game offering includes 20 games including over 50% of the top performing games that are localised for our market, such as LOBOLA CASH, STOKVEL CASH, POPA FEELA, TIC TAC TOE, FAFI FORTUNE and MORABARABA.
ANCIENT MOOLA
PLUS


RESPONSIBLE GAMING
ITHUBA has fully demonstrated its commitment to the protection of the interests of every South African National Lottery participant in terms of player protection. ITHUBA is currently certified at Level 1 for Responsible Gaming by the World Lotteries Association and is in the process of applying
for Level 2 certification. In addition, ITHUBA has developed appropriate Codes of Practice and implemented effective control measures to ensure that each and every player is treated fairly, and to ensure the winner’s identity is protected. ITHUBA is committed to maximising NLDTF contributions in a responsible way. Our main priorities are the prevention of underage play
and/or excessive play. ITHUBA encourages responsible play
by educating players on how to play responsibly. Our key communication messages “It’s only a game" and "Players
must be 18 years or older to play”, are included in all of our promotional material. As part of our commitment, ITHUBA conducts annual retailer mystery shopper market research to measure retailer compliance to prevent under age play. ITHUBA will continue to deliver a balanced, responsible gaming model that incorporates responsible gaming activities in accordance with the best interest of players, the community and the South African National Lottery.


BANKING CHANNELS
ITHUBA is a pioneering South African National Lottery operator, being the only lottery operator in the world to sell tickets via the digital channels of banking partners.
Pre-COVID-19, the banking partner channels contributed just over 14% of overall South African National Lottery sales. The lockdown and retailer restrictions driven by the pandemic accelerated the growth of on-line play, as players found
new, convenient ways of playing their favourite games. Sales through banking partners now contribute to over 40% of
total South African National Lottery sales. The success of banking partnerships is evident in the sales increase and player participation across all draw-based games. All four banks sell
tickets for LOTTO, PowerBall and DAILY LOTTO with the exception of ABSA bank that do not offer DAILY LOTTO as yet.
Some interesting facts:
• PowerBall is the most played game using the banking
partners, followed by LOTTO.
• Eighteen multi-millionaires were created from the banking
Apps during the reporting period with over R1,2 Billion paid to winners collectively.
"We've created a model that everybody can be proud of, and a case study to follow. We really want to leverage from the reputation that we have gained and our experience"
MRS CHARMAINE MABUZA
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INNOVATION
ITHUBA, continuously strives to find innovative ways to implement new-age technology systems that applies to the central lottery systems.
ITHUBA has completed the development for a localised Central Gaming System.
ITHUBA has developed several automated processes allowing for efficiency through day-to-day operational activities.
ITHUBA launched the first- ever South African National Lottery Mobile App, bringing modern day convenience to players.
ITHUBA has more than doubled the number of games in the South African National Lottery portfolio, launching more games than any other lottery operator worldwide.
In 2017, ITHUBA made the decision to move away from mechanical draw machines to the RNG and virtual draw technology with the ability to continue with remote draws during the entire COVID-19 pandemic and thus sustaining uninterrupted sales.
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JACKPOT WINNER STORIES
During FY7, we recorded 11,147 jackpot winners across various games, of which 64 were multi-millionaire winners. These are some of the winner stories that made headlines during this period.
City Press - December 2021
We have created multi-millionaire winners, bringing joy to many people’s lives and changing South Africa, one winner at a time.
Our Winners
You will easily be forgiven if you don’t know what an unemployed mother, a security guard and an investment banker have in common. For these three people, along with many others, 2021 was a year of change, and not the small kind either. All of them are now multi-millionaires, thanks to ITHUBA’s National Lottery jackpots.
“There have been some incredible wins this year,” says ITHUBA Group CEO, Mrs Charmaine Mabuza. “Our players come from all walks of life and are spread across all provinces. This is precisely what ITHUBA set out to do when we were awarded the third license to operate the South African National Lottery in 2015: to increase the South African National Lottery footprint and make
it accessible to all, so that all South Africans have can an equal opportunity to win life-changing jackpots”, she said.
“I had been playing for almost 14 years, every Tuesday and Friday, and the most I would ever win was between R30 and R60,” says a 72-year-old man who won an R100m playing PowerBall. “I was only ever hoping to catch a fish, but instead, I caught a whale.”
A North-West unemployed mother won a whopping
R158 Million PowerBall jackpot with a wager of R15 on
27 July 2021, making her the third highest jackpot winner of the year. Expressing her joy with the news of her windfall, she said: “I am not lucky, I’m blessed”. She will use her winnings to build and furnish her dream home, and invest a bulk amount of her winnings.
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For a Johannesburg- based security guard, a R15 ticket wager and a Quick Pick selection was all it took for him to scoop a R11 Million PowerBall PLUS jackpot.
“These winnings will make a huge
difference in our lives."
My wife is unemployed and we have three children in school. A portion of the money will go towards their tertiary education, while we invest some and invest in a property and transport business.
In Richards Bay, a housewife’s consistency paid off when she finally hit the jackpot earlier this year, winning R56 Million with a R7,50 wager on 04 May 2021. “I’ve been playing the same numbers ever since the Powerball launched in South Africa. I was not aware that I had won until I came across an article in
my local newspaper looking for one of the jackpot winners,” she said. On the anniversary of my late husband’s passing, “I decided to check my ticket and to my surprise, I was the lucky winner”.
It is not only jackpot winners that benefit from the South African National Lottery. For every ticket bought, 27% of the sale goes towards the NLDTF contributions. The R1.6 Billion contribution to the NLDTF brings ITHUBA’s total contributions towards good
causes to over R8 Billion. In addition, more than R1.8 Billion in commission has been paid out to retail partners, since 2015.
In keeping up with the spirit of giving, some winners have
opted to pay it forward by sharing some of their new wealth with others. A 73-year-old R30 Million LOTTO winner from Mpumalanga who won on 14 April 2021, opted to donate a large sum of money to schools in his area, while one 23-year-old student built her mother a house after she won R3 Million on LOTTO PLUS 1 with a wager of R80 on 03 July 2021.
Another winner who bagged a R50 Million jackpot, said she would be building homes for her mother and her boyfriend’s mother. “I have been unemployed since 2016, and I’ve been surviving on my mother’s small income. Before that, I was a general worker on the farms, I want to use my winnings to improve the lives of people who helped me during my darkest times.”
South African National Lottery winners purchase their tickets from various platforms, including the digital platforms of participating banks. The R86 Million PowerBall winner from Durban who won on 17 September 2021 purchased his winning ticket on the Absa banking App, using a R75 ticket wager.
Our ability to create alternative, convenient ways of playing the South African National Lottery has resulted in increased participation, as well as an increase in winners.
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CORPORATE SOCIAL RESPONSIBILITY
ITHUBA BURSARY PROGRAMME
As part of the Social Responsibility programme, the ITHUBA Bursary gives students a once-in-a-lifetime opportunity to further their tertiary studies.
ITHUBA’s bursaries are known to produce confident, qualified young professionals who are well equipped to enter the workplace or start their own businesses. In 2021, we had 41 students enrolled at South Africa’s leading Universities, studying to obtain some of the country’s much needed skills, such as Mechatronics, Chartered Accountancy and Computer Science. Our students performed extremely well in 2021 with two students receiving Golden Keys and one student making it onto the Dean’s Merit list.
ITHUBA has awarded 50 bursaries to students from around the country for the 2022 academic year. The bursaries cater for students studying in the fields of Marketing, Information Technology and Commerce, all of which are in high demand in the current economy.
Selecting suitable students from the thousands of applications we received was not an easy task, as the students also underwent a rigorous assessment process and interviews.
To qualify for a bursary, students must prove an excellent academic performance and achieve no less than 70% per subject. In addition, financial and family circumstances are carefully considered, and students must motivate how they will pay it forward to their community in the future.
The comprehensive nature of the bursary provides students with all the support needed to focus fully on their studies. The ITHUBA Bursary not only provides financial assistance, but
we have also extended our support to cater for the students’ mental health through our partnership with the health and wellness provider, ICAS. We also provide our bursary recipients with mentorship, continuous assessment of their academic performance that allows for early intervention and guidance support for the duration of their studies. Over and above that we provide learning material, including laptops, accommodation, meals and a personal care allowance.
Access to bursaries and other resources is a lifeline for students from previously marginalised communities who are not able
to fund their tertiary education. The cost of education is
high, making it difficult for young people from disadvantaged backgrounds to afford it. In this regard, active corporate citizenship that meets the needs of young students is imperative.
The ITHUBA bursary programme has proved to be successful. What sets us apart is our complete involvement in the progress of the students. Students go through continuous assessment of their academic performance, as well as enjoy early intervention programmes to help them with any arising problems. We provide guidance, support, and various workshops that focus on building your personal brand, goal setting, CV writing, and preparation for a first job interview throughout the year. The support has resulted in confident young graduates that go out into the workplace equipped with additional skills that set them up for success.
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The Scholarship offers:
• Tuition
• Student accommodation
• Study manuals and books
• Meal and personal care allowances
• Laptops and data allowances
• Psychological, emotional and legal support through ICAS
• An early intervention and support programme - preparation
for workplace readiness
• Additional female orientated skills development programmes
• Mentoring and coaching for all students
One of the students, Khanyisile Soboois is studying towards a BSC Mechatronic qualification at the University of Cape Town, after obtaining five distinctions in Matric. For Khanyisile, who is from Khayelitsha in Cape Town, life changed drastically after his mother passed away. “This opportunity will really change my life. Coming from an underprivileged community I know how difficult it can be to not have access to computers or even to know how to use one. Once I graduate, I plan to open computer centres in Khayelitsha to help equip young people with computer skills”
he says.
26


UNIVERSITY BURSARY FUNDING PROGRAMME
SOUTH AFRICAN NATIONAL LOTTERY OPERATOR ITHUBA GOING ABOVE AND BEYOND ITS MANDATE TO PRIORITISE EDUCATION
27


YOUTH ENTERPRISE
DEVELOPMENT PROGRAMME
EMPOWERED BY
ITHUBA YOUTH ENTERPRISE DEVELOPMENT PROGRAMME
28


ITHUBA BOOSTS SMALL BUSINESSES THROUGH
BUSINESS DEVELOPMENT PROGRAMME.
ITHUBA, in partnership with the University of Johannesburg (UJ) Business School celebrated the graduation of 32 entrepre- neurs that completed an Enterprise and Supplier Development (ESD) business course. The 21-week course was developed by the Business School, a faculty of the University of Johannesburg (UJ), for ITHUBA’s Enterprise and Supplier Development Programme (ESD), a funding initiative inspired by the impact of Covid-19 on small and medium enterprises (SMEs).
29


“When the pandemic hit two years ago, we looked at how
we could assist SMEs in their businesses,” said ITHUBA Group CEO, Mrs Charmaine Mabuza. “After an extensive review and evaluation process of ITHUBA’s suppliers and a range of SMEs, it became clear that financial assistance alone would not be enough to ensure the sustainability and longevity of many of these companies. Interventions at the grassroot levels were required.”
This saw ITHUBA launch its Business Development Programme and partner with the University of Johannesburg Business School that designed the tailor-made course focusing on skills development, digital skills training, mentorship, the economic value chain as well as practical application tools needed in a modern-day business.
The aim is to support recipients with practical tools and resources to help advance their business into sustainable profit-making enterprises. This is done through extensive funding, skills development, infrastructure investment and the creation of business opportunities,” she said. “As ITHUBA we
are proud to have this partnership with the UJ Business School and together, our efforts in coaching and grooming business leaders in their various fields will go a long way in ensuring these SMEs are successful.” The top five ESD receipts that received additional discretionary grant funding for their excellence during the programme are, Tarospace (PTY) Ltd, Rapetticom, Siphile Consulting Co. (PTY) Ltd, Lapa Lodge and Vumile Consulting
and Projects (PTY) Ltd. Graduate Mahlatse Phahlamohlaka,
Key Accounts Manager at Monabo Hygiene Services, says the company has been given a competitive advantage thanks to ITHUBA. “On completion of the course, not only do we now understand the ecosystem of the business better, but our eyes have been opened in terms of financing, identifying gaps in our operations and improving our marketing.”
Monabo was founded in 2009 by Bongiwe Monaketi, a former government employee who used her provident fund to start the business after identifying a gap in the market in the cleaning services industry when she saw the treatment of her domestic
worker mother at the hands of an employer.
Paddling Grounds (PG Agribusiness), a Mpumalanga- headquartered meat processing and wholesale distribution company that started with only five cattle back in 2014, found an advantage in the ESD Programme and Business Development course. According to Bongani Sambo, managing director of PG Agribusiness, ITHUBA has helped them to grow significantly in the past year.
“ITHUBA’s funding has taken us a step further in realising our strategic vision to move from a wholesaler to a complete farm-to-table model. Our goal is to produce and process a variety of meat types also owning the retail outlets distributing to customers.”
For Lerato Kapari and Mpho Lekeba, founders of Cake & Keto, ITHUBA has opened several doors, setting their business on
the right track. The company came about after Kapari and her diabetic mother could not find suitable sweet treats to meet their dietary requirements in 2020 and started making cookies and cakes. Since then, they have employed a professional baker, established a product and packaging line and signed a deal with a new convenience store for products on their shelves.
“ITHUBA has allowed us to align our passion for our small enterprise with some real business acumen, giving us the direction that will allow us to attract investors, grow our footprint and expand our research and development - all key aspects to remain competitive in the market.” According to
Mrs Charmaine Mabuza, there are numerous benefits to the
ESD Programme and the UJ Business Development course. “Empowering entrepreneurs is at the heart of ITHUBA’s ethos. By upskilling and equipping our grant recipients with the relevant business learning and training, it assists them to become innovative thinkers and managers of high-performing businesses that are in turn, the life-blood of our economy.”
30


FINANCIAL REPORT
Net Sales (Incl VAT)
7 127 065 513
2 600 524 825 3 538 221 345 159 844 274 27 514 798 180 697 24 310 559 776 469 015
1 641 380 415
599 106 180 816 309 481 35 443 730 6 101 107 40 067 5 603 366 178 776 481
3 446 597 661
1 247 731 522 1 700 350 472 79 931 116 13 925 276 88 934 13 443 044 391 127 295
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LOTTO, LOTTO PLUS 1 & 2
PowerBall & PowerBall PLUS
SPORTSTAKE 13
SPORTSTAKE 8
SPORTSTAKE SPORTSPOOL
EAZiWIN On-line
DAILY LOTTO
Contribution to NLDTF (Incl VAT)
LOTTO, LOTTO PLUS 1 & 2
PowerBall & PowerBall PLUS
SPORTSTAKE 13
SPORTSTAKE 8
SPORTSTAKE SPORTSPOOL
EAZiWIN On-line
DAILY LOTTO
Total Prizes (Incl VAT)
LOTTO, LOTTO PLUS 1 & 2
PowerBall & PowerBall PLUS
SPORTSTAKE 13
SPORTSTAKE 8
SPORTSTAKE SPORTSPOOL
EAZiWIN On-line
DAILY LOTTO


32
CONCLUSION
ITHUBA continues to reinvigorate the South African National Lottery. To date, ITHUBA has been honoured as the most successful South African National Lottery operator that has demonstrated excellence in terms of day-to-day operations, game design based on the needs of the market, compliance and corporate governance, winner services, and exciting marketing initiatives to reach the hearts and minds of our players.
The awards and recognition that ITHUBA received from global institutions such as Gaming for Africa, the World Lotteries Association, iGaming and many more, are a true testimony that ITHUBA is indeed the operator of choice.


NOTES
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REGISTERED OFFICE
14A Charles Crescent, Eastgate Ext. 4, Sandton 2148
CONTACT DETAILS
Tel: 011 346 6000 | Email: [email protected] | www.ithubalottery.co.za
DIRECTORS
Mr Molefe Seth Phalatse Chairperson | Mrs Charmaine Mabuza Group Chief Executive Officer | William Woods Scott Non-executive Director | Thulisile Njapa Mashanda Non-executive Director | Advocate Eric Mabuza Non-executive Director | Mr Mpho Baaitjies Non-executive Director | Roè Senaoana Non-executive Director | Zainab Seria Company Secretary


TM