How sustainable is Africa’s metals giant?
By Ethical Business
13 December 2025
For six decades, Safal Group has stamped its presence across Africa’s built environment – from Nairobi tower blocks to Cape Town warehouses, from Dar es Salaam factories to rural Kenyan schools. As the continent’s largest steel roofing manufacturer and sole producer of aluminium-zinc coated steel, the multinational commands production facilities in nine countries and exports to more than 40 markets. Yet beneath the scale lies a more complex picture: a company claiming environmental leadership whilst operating in one of the world’s most carbon-intensive industries, and championing ethical business through an ownership structure designed for opacity.
This profile examines Safal’s operations across energy consumption, waste management, and supply chains—the three pillars that will determine whether Africa’s infrastructure boom becomes a climate liability or a model of industrial sustainability.
The Empire
Safal’s footprint is formidable. Headquartered in Nairobi, with ultimate ownership held through Safal Investments (Mauritius) Limited, a holding company established in 1995 and restructured in 2003, the Group operates coil coating facilities in Kenya, Tanzania, and South Africa, alongside more than 30 roll-forming operations for roofing sheets. It employs over 3,500 people and serves markets from the Democratic Republic of Congo to Madagascar.
The flagship remains Mabati Rolling Mills (MRM), founded in Mariakani near Mombasa in 1962. MRM pioneered Africa’s first aluminium-zinc coating technology under licence from Bethlehem International Engineering Corporation, producing the Zincal brand—a 55 per cent aluminium, 43.5 per cent zinc, and 1.5 per cent silicon alloy that extends steel’s service life in corrosive African climates. The technology arrived late to the continent but revolutionised durability standards. Colour-coated variants—Colorplus and Optima—now dominate premium segments.
In South Africa, Safal Steel represents the Group’s single largest investment, exceeding R1.5 billion. The Cato Ridge facility in KwaZulu-Natal, developed in partnership with South Africa’s Industrial Development Corporation and officially opened in 2012, produces 150,000 metric tonnes annually of metal-coated and painted coils, with expansion capacity to 300,000 tonnes. The plant imports hot-rolled coils from global suppliers, processes them through pickling, cold rolling, coating, and painting lines, then distributes across Southern Africa and international markets.
Energy: Incremental Progress, Absent Ambition
Safal Steel’s South African operations produce fewer than 10,000 tonnes of CO₂ equivalents annually—a figure the company promotes prominently. Contextualised, this represents roughly 67 kilogrammes of CO₂ per tonne of coated steel produced, materially lower than global steel industry averages of 1.8 tonnes per tonne for integrated mills, though comparing coating operations to primary steel production obscures more than it reveals.
The critical distinction: Safal is not a steelmaker. It is a steel processor. The Group purchases hot-rolled coils—already energy-intensive products—then adds value through coating and painting. The disclosed emissions capture only Scope 1 and 2—direct fuel combustion and purchased electricity—not the embodied carbon in feedstock. This is standard industry practice, but it positions Safal’s climate footprint disclosure as materially incomplete.
Progress has arrived recently. In September 2025, MRM commissioned a 2.9-megawatt rooftop solar installation at its Mariakani facility through partnership with Orb Energy, generating approximately 4,200 megawatt-hours of clean electricity annually and avoiding 3,800 tonnes of CO₂ emissions. At an estimated cost saving of $300,000 annually, the installation underscores the business case for renewable integration. Yet this remains the Group’s sole disclosed large-scale renewable energy project across nine operating countries.
Water used in Safal Steel’s processes is purified and reused on-site, with effluent treatment facilities preventing discharge. Nitrogen and hydrogen generation plants, acid regeneration systems, and regenerative thermal oxidisers support closed-loop manufacturing. These investments matter—coating lines consume substantial water and generate acidic waste—but baseline disclosure is absent. How much water is consumed per tonne? What are effluent quality parameters? What percentage is recycled versus discharged?
The company has not committed to Science Based Targets, set a net-zero date, or disclosed Scope 3 emissions spanning purchased goods, logistics, and product end-of-life. For a Group supplying construction materials across a climate-vulnerable continent, this represents a governance gap.
Waste: Industry-Leading Recycling, Questions Remaining
Safal Steel recycles up to 95 per cent of waste steel, positioning it among Africa’s best-performing steel processors. Steel’s material properties enable infinite recycling without quality degradation—a structural advantage the company leverages effectively. Off-cuts, rejected coils, and production scrap are collected, remelted by suppliers, and returned as feedstock.
Beyond steel, disclosure thins. What happens to paint waste, chemical residues from pickling lines, and packaging materials? The Group references an acid regeneration plant at Cato Ridge, which recovers hydrochloric acid from pickling operations rather than generating hazardous waste, but quantified data—tonnes diverted from landfill, hazardous waste ratios, recycling rates for non-ferrous materials—is not publicly reported.
This opacity extends across manufacturing sites. MRM’s Mariakani facility, ALAF’s Dar es Salaam plant, and the Cato Ridge complex operate in jurisdictions with varying environmental enforcement regimes. Kenya’s National Environment Management Authority, Tanzania’s National Environment Management Council, and South Africa’s Department of Forestry, Fisheries and the Environment impose different standards. Safal’s public reporting does not disaggregate performance by jurisdiction, obscuring whether facilities meet merely local compliance or apply group-wide best practice.
Supply Chains: Global Sourcing, Limited Visibility
Safal’s model depends on global steel supply. Hot-rolled coils are purchased from a variety of global suppliers, processed locally, then sold into African markets. This reverse integration—buying globally, adding value regionally—offers cost efficiency but imports carbon intensity from steelmaking regions with varied emissions profiles.
Where do the coils originate? China, India, South Korea, Turkey, and European mills supply African processors, but Safal does not disclose supplier countries, mills, or criteria for selection beyond quality and price. Whether suppliers adhere to environmental standards, labour protections, or anti-corruption frameworks is unknown. The company references a Head of Supply Chain and procurement functions but provides no transparency on due diligence processes, supplier audits, or responsible sourcing policies.
Downstream, the Group’s distribution network spans over 100 locations across Eastern and Southern Africa, moving finished products via road, rail, and coastal shipping. Logistics emissions—Scope 3 Category 4 (upstream transport) and Category 9 (downstream transport)—remain undisclosed. For a company moving thousands of tonnes monthly across vast distances on infrastructure often dependent on diesel, this represents a significant blind spot.
On the social dimension, Safal highlights its Mabati Technical Training Institute and Mabati Medical Centre in Mariakani, alongside healthcare, education, and shelter programmes administered through the Safal-MRM Foundation. These initiatives reflect genuine community investment. Yet labour practice disclosure—workforce demographics, gender representation (the Group targets 30 per cent women by 2030), wage levels relative to living wages, union recognition, health and safety incident rates—is fragmentary. The company employs over 3,500 people; granular data should be standard.
Governance: Mauritius Structure, Minimal Disclosure
Ownership opacity warrants scrutiny. Safal Investments (Mauritius) Limited functions as the ultimate holding company—a common structure for African multinationals seeking tax efficiency, currency flexibility, and access to international capital markets. Mauritius offers a preferential tax regime, double taxation treaties with African nations, and a reputation as a stable financial centre. For investors, the structure is rational. For stakeholders seeking accountability, it is problematic.
Who owns Safal Investments (Mauritius) Limited? The company is privately held; beneficial ownership is not disclosed. Management profiles are sparse. Anders Lindgren serves as Group CEO, Albert Sigei as MRM CEO, but board composition, governance structures, audit processes, and executive remuneration are not publicly reported. There is no evidence the Group publishes an annual report, sustainability report, or integrated report to recognised frameworks such as Global Reporting Initiative, Task Force on Climate-related Financial Disclosures, or Sustainability Accounting Standards Board.
This creates an accountability vacuum. Institutional investors, development finance institutions, governments procuring materials, and civil society lack the information necessary to assess Safal’s alignment with environmental, social, and governance expectations. For a company supplying infrastructure to some of Africa’s most vulnerable economies, this is a material deficiency.
The Verdict: Operational Competence, Strategic Inertia
Safal’s manufacturing credentials are solid. Aluminium-zinc coating technology performs well in tropical conditions, extending roof life from seven to 25 years compared to galvanised alternatives—a genuine contribution to material efficiency. The 95 per cent steel recycling rate demonstrates industrial best practice. The Mariakani solar installation signals emerging climate action. Community investments reflect corporate citizenship beyond profit extraction.
Yet these incremental advances operate within a disclosure framework designed for minimum visibility. For a Group with six decades of operations, employing thousands, shaping Africa’s built environment, and positioning itself as a thought leader, the absence of comprehensive ESG reporting is striking. The Mauritius holding structure, whilst legally compliant, insulates ownership and governance from scrutiny. Supply chain transparency is minimal. Climate commitments are absent.
Africa’s infrastructure deficit—estimated by the African Development Bank at $68 billion to $108 billion annually—will drive construction demand for decades. Steel consumption will rise correspondingly. The question facing Safal is whether it will lead this transition towards low-carbon, transparently governed, socially inclusive industrialisation, or continue profiting from it whilst externalising climate risk and governance accountability.
The evidence suggests the latter. Safal’s “Building Africa with Pride” tagline resonates. The company’s disclosure practices do not.
SUSTAINABILITY SCORECARD
ENERGY & EMISSIONS
Disclosure: ⚫⚫⚪⚪⚪
- Scope 1 and 2 emissions reported for Safal Steel only (fewer than 10,000 tonnes CO₂e annually)
- No Scope 3 disclosure (purchased goods, logistics, product end-of-life)
- No group-wide emissions data across nine operating countries
Performance: ⚫⚫⚪⚪⚪
- 2.9 MW solar installation at MRM Mariakani (September 2025), avoiding 3,800 tonnes CO₂ annually
- Water reuse and effluent treatment at Safal Steel
- No Science Based Targets, net-zero commitment, or renewable energy targets disclosed
Risk Assessment: Moderate to High
Dependence on grid electricity in markets with high coal intensity (South Africa, Tanzania). Exposure to carbon pricing mechanisms as African governments adopt climate policies. Limited renewable energy integration beyond one installation.
WASTE MANAGEMENT
Disclosure: ⚫⚫⚪⚪⚪
- Steel recycling rate disclosed (95 per cent)
- No data on non-ferrous waste, chemical residues, packaging, or hazardous waste
- No waste-to-landfill metrics or circular economy strategy
Performance: ⚫⚫⚫⚫⚪
- Industry-leading steel recycling (95 per cent)
- Acid regeneration plant at Cato Ridge reduces hazardous waste
- Closed-loop water systems minimise discharge
Risk Assessment: Low to Moderate
Steel recycling infrastructure mature. Chemical waste management dependent on local regulatory enforcement. Potential liabilities in jurisdictions with weak hazardous waste frameworks.
SUPPLY CHAIN & SOURCING
Disclosure: ⚫⚪⚪⚪⚪
- No disclosure of hot-rolled coil suppliers (countries, mills, volumes)
- No responsible sourcing policy, supplier code of conduct, or due diligence framework disclosed
- No logistics emissions data (upstream or downstream transport)
Performance: ⚫⚫⚪⚪⚪
- Local value addition through coating and fabrication
- Extensive African distribution network (100+ locations)
- No evidence of supplier environmental or social audits
Risk Assessment: High
Dependence on global steel supply chains with variable carbon intensity and labour standards. Exposure to geopolitical supply disruptions (China export restrictions, trade tariffs). Logistics emissions likely material but unmanaged.
GOVERNANCE & TRANSPARENCY
Disclosure: ⚫⚪⚪⚪⚪
- No annual report, sustainability report, or integrated report published
- No disclosure of beneficial ownership, board composition, or executive remuneration
- Mauritius holding structure limits accountability to African stakeholders
Performance: ⚫⚫⚪⚪⚪
- Community investments through Safal-MRM Foundation (education, healthcare)
- Gender diversity target (30 per cent women by 2030)
- No evidence of alignment with international frameworks (GRI, TCFD, SASB, UN Global Compact)
Risk Assessment: High
Opacity on ownership and governance creates reputational risk. Absence of ESG reporting limits access to sustainable finance. Potential regulatory risk as African jurisdictions adopt mandatory disclosure requirements.
LABOUR & SOCIAL IMPACT
Disclosure: ⚫⚪⚪⚪⚪
- Workforce size disclosed (3,500+)
- No data on wages, health and safety incidents, union recognition, or workforce demographics by gender, age, nationality
Performance: ⚫⚫⚫⚪⚪
- Mabati Technical Training Institute and Medical Centre (Mariakani)
- Community programmes in health, education, and shelter
- Local employment creation in manufacturing hubs
Risk Assessment: Moderate
Operating in jurisdictions with variable labour protections (Kenya, Tanzania, South Africa). Potential exposure to labour disputes or reputational campaigns absent transparent reporting.
OVERALL ASSESSMENT
⚫⚫⚪⚪⚪ — EMERGING, WITH CRITICAL GAPS
Safal Group demonstrates operational competence and selective best practices—particularly in steel recycling and community investment—but operates within a disclosure framework inadequate for a company of its scale and influence. The absence of comprehensive ESG reporting, climate commitments, supply chain transparency, and governance disclosure positions Safal below expectations for responsible industrialisation in 21st-century Africa.
For investors, procurement officers, and policymakers evaluating Safal as a partner, the message is clear: demand disclosure. Without it, assessing alignment with sustainability goals, climate targets, and ethical governance standards is impossible.
Africa deserves better than opacity wrapped in aspiration.
Methodology Note: This assessment relies on publicly available information from company websites, press releases, third-party reports, and regulatory filings as of December 2025. The absence of formal ESG reporting limits analytical depth. Ratings reflect both disclosed performance and transparency quality, recognising that incomplete disclosure itself constitutes a governance risk.
