InBrief Magazine - May 2017

INBRIEF MAGAZINE Issue (22) May 2017

Unity is Power –Oliver Reginald Tambo

#HireAGraduate CAMPAIGN

MIND YOUR [MATHS] LANGUAGE 1

SOCIAL INNOVATION

INSIDEINBRIEF

TAMBO LEGACY

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ADJUSTING TO VARSITY LIFE

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NATIONAL EDUCATION EXCELLENCE AWARDS

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MIND YOUR [MATHS] LANGUAGE

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EDUCATION CONVERSATIONS

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KAGISO TRUST FINANCIAL REVIEW

04 Word from Communications & Marketing 26 Managing Your Money 14 Infrastructure to Succeed 29 Book Review 17 #HireAGraduate Campaign 30 Notices 19 Social Innovation 25 5 Minutes with Silindokuhle Head of Communication and Marketing: Nontando Mthethwa, Editor: Amandla Kwinana Cover image: Nationaal Archief NL | Writers: Amandla Kwinana, Chulekazi Charlie Kagiso Trust PBO No. 130004486 info@kagiso.co.za | www.kagiso.co.za | 011 566 1900 Published by Star Hero Media Group (Level 1 BBBEE Certified Black Owned Agency. nonie@starhero.co.za | www.starhero.co.za | 011 462 1787 MEDIA GROUP

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WORD FROM

COMMUNICATIONS AND MARKETING

Nontando Mthethwa

Communications and Marketing Head

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roughout Kagiso Trust’s many iterations and evolution, its steadfast commitment to uplifting South Africans remains firm. When the organisation was established in 1985, it was as a key player in the war against Apartheid. But as the country developed into a fledgling democracy, the organisation evolved too, and by 1994, it had taken up arms against a new enemy: poverty.

The Trust honed in on certain sectors where it believed it could make the greatest difference: health and welfare, education and training, housing, rural and economic development as well as capacity building.

However, following the appointment of the country’s first democratic administration, many donors preferred to work directly with government. This resulted in a significant reduction in donor funds, prompting Kagiso Trust to innovate new ways of operating.

This is the essence of what makes Kagiso Trust different to other development agencies. We are self-reliant; and as a result enjoy total independence in terms of deciding our development agenda. Indeed, we have always preferred to generate our own solutions to empower disadvantaged communities.

Our ethos allows us to work with partners who are aligned to our strategic direction; entities which accept our need to be independent, but who want to become part of our journey by contributing in their own way.

Finding our own way The independence we so greatly cherish has been made possible thanks to the development of income generating streams. Because we have our own sources

of revenue, we are able to approach role players in the development sphere on an equal footing, rather than with an open hand. This allows for deeper conversations, where we are able to play to our skills and expertise.

To ensure that we maintain our position of strength, we have created two separate entities: Kagiso Tiso Holdings (KTH) and Kagiso Capital. These organisations are central to maintaining a diversified portfolio, which in turn ensures long-term financial sustainability.

Looking ahead KTH and Kagiso Capital have contributed significantly to Kagiso Trust, as an organisation that is stable yet dynamic; one which is excited about the future as it is proud of the past. Of course, we realise that the years ahead are likely to be vastly different to those behind us. We are, after all, operating in a socio-political milieu that bears little relation to that which provided context for our founding fathers.

This realisation prompted us to launch our new 30-year strategy in 2016. This is supported by five key pillars; areas where we will be concentrating our focus: education, socioeconomic development, institutional capacity building, financial sustainability and special projects (fields where we are not, traditionally, integrally involved but which show merit and may be worth exploring).

Our 30-year strategy is more than just a roadmap to help us navigate these crucial areas: it is also a public commitment to dreaming big. We want to do more than make a contribution to South Africa. We want that contribution to be so significant

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that we reach a point where all South Africans are empowered, and we achieve true social justice and equality – a point where there really is no longer a need for the Kagiso Trust.

Importantly, our new strategy speaks directly to the National Development Plan and the Sustainable Development Goals.

They provide a direct benchmark for our work, making it possible for every South African to hold us accountable.

Facing the future, together We realise that as we move forward, collaboration will become ever more important. We’re excited about this: we are eager for the solutions and strategies we have developed to extend well beyond the scope of our Trust. We’ve gathered a wealth of knowledge over the past three decades, and we can all benefit by sharing it. We believe there is a special place for players who understand the importance of a long-term commitment and who are cognisant of the need to remain accountable, and reinvent yourself if your current efforts aren’t hitting their mark.

This is the thinking we value in our partners.

We believe that those partners may come in many forms, which is why we don’t limit our collaboration to corporates. We’re also excited to join forces with individuals. In fact, we would love to create a movement involving all South Africans, one where we each recognise that we have the ability – and responsibility – to make a difference.

This is our call: Choose which area of South African society you wish to change, and commit to it!

image credit: Newsweek

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HONOURING OR TAMBO’S LEGACY

In 1980, as the African National Congress (ANC) celebrated its 68th anniversary, Oliver Reginald Tambo addressed the congregation: “The need for the unity of the patriotic and democratic forces of our country has never been greater than it is today… Our unity has to be based on honesty among ourselves, the courage to face reality, adherence to what has been agreed upon, to principle.”

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O

R Tambo’s words are just as relevant as they were then and are applicable to Kagiso Trust and South Africa as a whole.

Unity speaks to a group’s shared vision and mission and a strong leader with unwavering integrity at the helm.

As Kagiso Trust we entrust our Board of Trustees with the responsibility to lead us to the realisation of our vision of a prosperous, peaceful, equitable and just society. Equally, we entrust our employees with the responsibility to deliver on our mission and contribute to development through sustainable funding, with like-minded partnerships and innovative scalable development models. Integral to these responsibilities is what OR Tambo stood for: unity and integrity.

He urged us to be honest among ourselves, no matter how difficult; courageous as we face the realities of our context and purpose; and adhere to our mandates to principle, which for Kagiso Trust is overcoming poverty while upholding our values.

Kagiso Trust has long realised that unity is power.

This is why, 31 years since our inception, we are still proactively forging and encouraging partnerships and collaborations. As a united organisation, Kagiso Trust is confident that our vision will be realised and South Africa will see poverty become a thing of the past.

Mankodi Moitse Kagiso Trust Chief Executive Officer

As South Africa and the world celebrate what would have been OR Tambo’s 100th birthday this year, let us hold fast to the values he passed down to us and dedicated his life to fulfilling.

UbunguMkhonto weSizwe, iQhawe lama Qhawe.

Kagiso Trust salutes you, Oliver Reginald Kaizana Tambo.

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Our commitment in education programmes is to deepen and replicate education programmes from ECD to tertiary opportunities, applying a structured framework to address systemic gaps

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FREE STATE DISTRICTS PERFORM WELL at the 2017 National Education Excellence Awards The 2017 National Education Excellence Awards were held in Menlyn, Pretoria on 7 April 2017. These awards provided a platform for Basic Education Minister Mrs. Angie Motshekga to identify, acknowledge and show appreciation towards the contribution of education districts. There are four categories in which the Free State stood out, these are: Category A: Top performing districts (Districts serving 201 – 400 schools): Fezile Dabi won first position (Districts serving 401 schools and above): Thabo Mofutsanyane obtained first position (Districts serving up to 200 schools): Xhariep secured second position Category B: Top performing districts between years 2014 – 2016. Focus primarily on Bachelor passes Thabo Mofutsanyane obtained first position Category C: Top performing districts between years 2014 – 2016 Thabo Mofutsanyane Category D: Most improved district Thabo Mofutsanyane obtained third position Category E: Top performing schools Quintile 1 – Rantsane Secondary School in Phuthaditjhaba Qwa-Qwa All three districts will receive study tours in Finland in addition to other prizes. “These districts are reaping the rewards of tireless hard work and the entire province is ululating behind them,” said Free State MEC for Education, Mr. Tate Makgoe. The MEC added by saying the Free State continues to set the bar high and onwards and upwards; the province leads with this theme!

Congratulations Free State, you are simply the best!

Fezile Dabi District Director Mr Chuta is presented with Thabo Mofutsanyana District Director Ms Mabaso his award by MEC Tate Makgoe. receives her award 9

EDUCATION CONVERSATIONS sheds a spotlight on mathematics in South African schools

hy do South African learners perform so poorly in mathematics?

What can we do to improve performance? Is maths still relevant in our current context?

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These are some of the questions that Kagiso Trust attempted to answer at the latest instalment of Education Conversations, hosted in conjunction with the University of Johannesburg’s Faculty of Education. Together with panellists Dr Linda Zuze of the Human Sciences Research Council, Dario

Fanucchi, technical director at Isazi Consulting and consultant Nontobeko Mabutu, the event – themed around ‘Mathematics: How does South Africa measure up?’ – examined findings from the recent Trends in International Mathematics and Science Studies (TIMSS), and their implications.

For Zuze, some of the most interesting data revealed by the study pertains to gender differences in terms of performance in mathematics, particularly as STEM subjects’ apparent lack of appeal 10

for female learners has been well publicised. In fact, says Zuze, by the time learners reach Grade 9, there is relatively little difference in their performance; although in general, female learners tend to perform better in Grade 5.

There is, however, a major difference to be discerned between the achievement of children at fee paying, independent schools, who tend to perform better than those at non-fee paying schools.

Added to this, boys were more likely to outperform girls amongst high achievers at fee paying schools. Zuze also commented on the fact that boys at non-fee paying schools were seen to have the lowest career aspirations (although this may be because they are open to less formal career paths).

Girls are generally more ambitious in terms of their career goals; they are also more likely to discuss their concerns with a parent or other adult, and to benefit from parental involvement in their homework. A final observation is that although the incidence of bullying has decreased at South African schools, male learners still regularly experience bullying across all school settings.

The TIMSS findings were based on a sample of 12 514 learners, 334 mathematics teachers and 331 science teachers at 292 schools in South Africa.

Fanucchi’s answer to the question of whether South African learners measure up in mathematics is that we should not be looking at whether mathematics is considered

difficult, but if it can be thought of as relevant in our current context.

He maintains that the answer is yes, particularly as almost every action or item we encounter in our daily lives involves an element of mathematic calculation. The solution, therefore, is helping learners see this relevance for themselves.

It may also help to strengthen the relationship between learners and teachers, so that learners are inspired to try their hardest while receiving the teaching support they require. Technology can also be employed to help foster understanding amongst students; even in schools where connectivity is an issue, cell phones may become a useful teaching aid, said Fanucchi.

For Mabutu, the challenge lies in addressing teacher challenges; the major obstacle being the fact that – at primary school level especially – teachers are not required to be subject specialists and are, in fact, rotated through various subjects on an annual basis. This inhibits their ability to foster the deep understanding of mathematics that

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is required in order to help learners address their concerns.

Although the question of how to address poor performance in mathematics is a complex and multi-faceted one, the panellists were in agreement that the perception of mathematics as a subject that is impossible to master urgently needs to be disproved.

Learners should be made to understand that it is simply an extension of their innate logic, and therefore is within everyone’s reach. It is the responsibility of all involved in the education sphere to bring this to their attention, and to use their creativity to make mathematics more accessible.

Education Conversations is an attempt by Kagiso Trust and the University of Johannesburg to encourage greater stakeholder engagement in the creation of an effective public education sector; the goal being to move away from focusing on the pathology of the sector and instead foster debate about the initiatives that have proved fruitful.

MIND YOUR

[Maths] LANGUAGE

University of the Witwatersrand’s Mathematics Education lecturer, Dr Pete van Jaarsveld, shares his deliberations on the topic discussed at the recent Education Conversations - Mathematics: how does SA measure up?

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believe that language has the potential of realising personal and social justice in mathematics education.

Being South African since 1994 means that we are familiar with eleven official languages. Of these English is the language of teaching and learning in most of South Africa’s classrooms, and according to students under my tutelage, the preferred language of teaching in initial teacher education courses.

of multilingual South African classrooms the languages of learning and teaching are seen as resources where shared languages enable learners and teacher to revoice their understanding of mathematical content for the purpose of agreed meaning.

Code-switching, the alternating of languages while in dialogue, for example, may use the term ‘idenominator’ and refer to its position in the fraction as ‘phansi’ meaning ‘down’ or ‘under’.

This means of course that most of South Africa’s learners are not taught in their mother tongue.

And in mathematics classrooms, mathematics, the universal language of the sciences is a language within the language of instruction.

In this case the alternating languages would be English and isiXhosa. As useful as code-switching may be theoretically, language as resource in its broadest application has the potential of creating confusion amongst learners in instances where the language of mathematics is tarnished by incorrect vocabulary.

The compounded effects of the complexities of English as a second language, and the sophistication of mathematics as a scientific language causes me to posit that South Africa is not measuring up in mathematics because it is doubly, and possibly triply, misunderstood in the case of English as the language of teaching, an African language as mother tongue, and mathematics the universal language of science being in the discourse of any single classroom.

Language has been the focus of much research both nationally and internationally over the past decades. In the context

For dialogue to be meaningful there is the subliminal presumption that the object of the conversation has the same meaning for its participants.

What one communicant accepts and understands as the object under discussion must be exactly the same as the other’s acceptance and understanding. I illustrate this point by an example of what transpires frequently in initial teacher education courses that aim at helping prospective mathematics teachers develop sound pedagogical practices. In mathematics an expression and an equation are fundamentally different constructs,

Read the full article: www.kagiso.co.za/mind-your-maths-language

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the former associated with a process of simplification and the other with a process of solution. One therefore ‘simplifies expressions’ and ‘solves equations’. The terms however are used synonymously by a majority of my student teachers, with a leaning toward all mathematical objects needing to be solved, or a hybrid concoction of ‘solve the expression’.

This shows that there is no agreed meaning on the words ‘equation’ and ‘expression’ when I am in dialogue with students. Transfer this scenario to an episode of teaching where a teacher does not distinguish between an equation and an expression and an entire class is then placed at risk of cognitive dissonance.

So how does South Africa measure up in mathematics? By current statistics on learner performance, and the capacity and competence of our teachers we do not measure up nationally or internationally in all grades across the school system.

The hypothesis proposed here is that a broad focus on language without attention to precise use of terms, and understanding, will not make a substantial difference. By contrast, specific focus on concepts, and the associated terms, and the expression of these concepts verbally and in writing, will provide the groundwork for more advanced mathematics.

AFFORDING LEARNERS THE

INFRASTRUCTURE TO SUCCEED

The Kagiso Shanduka Trust (KST) and Free State Department of Education partnership aims to partner for excellence in education and to make education an empowering experience that equips learners with the skills and knowledge to thrive, while contributing to the development of South African society.

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ST believes basic highquality infrastructure, such as ablution facilities and classrooms, are the minimum requirements for a school to function. As a reward, the infrastructure programme provides additional resources – incentive infrastructure – to the schools that exceed their performance targets set through the KST programme.

Since inception, the partnership has initiated the infrastructure development programme in 78 schools that have received infrastructure, 40 in Fezile Dabi and 38 in Motheo. Schools have received new and renovated classrooms, ablution facilities, libraries, media centres, science laboratories and kitchens.

One of the beneficiaries, Strydom Secondary School, received new

life science and physical science laboratories through the KST District Whole School Development Programme.

There has been a great deal of excitement from both learners and educators about what these new additions mean for their improved understanding of science.

According to Lerato, a grade 10 learner at the school, “Sometimes we would have to do experiments in class; but we would only be able to read from our text books and try to imagine the experiment. But now with the new KST labs we can do experiments.”

Massimini believes these resources should be shared with other schools as the school belongs to the community. She regularly invites learners from other schools over weekends. “They come to the lab, they put on the coats and goggles and I show them the apparatus.

They really get excited and their love for science is evident.”

Life science educator, Lizzie Massimini, agrees. “Previously, we could only draw on the board to explain a concept and if learners didn’t grasp it, it was very frustrating.”

For more information on Kagiso Shanduka Trust visit www.kst.org.za 14

ADJUSTING TO

VARSITY LIFE

Nthuse Mothiane is one of the 15 students that were accepted into the Eric Molobi Scholarship Programme (EMSP) in 2016. He took some time out to briefly share his journey and experiences with Kagiso Trust.

Currently studying Civil Engineering at the University of Pretoria, Nthuse comes from humble beginnings in Phuthaditjhaba, Qwaqwa. He comes from a family of four and is the middle child. They were raised by their parents on a small farming community and his parents earned a living from selling crops.

How did you find the transition from high school to university?

Adjusting to a new environment was quite rough; from the typical day to day high school environment to adjusting to a fast-paced university life where everything goes by very fast. What contributed to my frustration even more was that I was unfamiliar with a big city.

What advice would you give to first year students?

I would advise them to not get caught up in the life on campus, as there can be many distractions that can ultimately hold you back from what you had initially wanted to accomplish. And lastly never be afraid to ask for help; it comes in handy in a new environment and a helping hand is sometimes the only way for you to find your feet.

How has the EMSP assisted you with adjusting?

Help is always a phone call away. I could not have made it without the guidance and assistance that was provided through the programme. Furthermore, I was introduced to the Rural Education Access Programme which enabled me to adapt as smoothly as possible to life on campus. Not only did Kagiso Trust ensure that I had the basic tools such as a laptop, but they also assisted me psycho-socially.

Anything interesting you’d like to share?

Well it’s not really interesting (laughs), but I prefer not to go home on holidays but rather find work in construction. It’s dawned on me how critical it is to have work experience in our country, and I would hate to be part of the many South Africans that find themselves destitute after obtaining their degrees.

What challenges have you encountered during your varsity experience or with your studies?

Despite the large amounts of workload that I am faced with and adjusting to grappling with English as the language of instruction in my studies, I must say I have had a smooth varsity experience and it is largely due to the support I have received from Kagiso Trust since I became part of the EMSP Programme.

The Eric Molobi Scholarship Programme (EMSP) is named after the late Kagiso Trust CEO, Eric Molobi.

Deeply committed to the objectives of the Trust, Eric played a pivotal role in promoting and supporting social development, particularly amongst the poverty stricken rural youth.

The goal of the EMSP is to create a viable, vibrant network of young leaders in the business and engineering sectors by supporting students financially and pyscho-socially as they advance their education.

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Enterprise development is the catalyst to broad socio-economic transformation

#HireAGraduate Campaign Graduates question the value of their degrees amidst high unemployment rate among graduates.

Chulekazi Charlie explores their frustration.

In February this year, unemployed graduates from several Eastern Cape universities took part in a #HireAGraduate campaign, in an effort to draw the attention of government and private sectors to the sad reality of unemployed graduates. The disgruntled youth made it clear that they are fed up with the high unemployment rate of graduates.

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raduates from universities and TVET institutions alike, gathered to make their voices heard about the lack of job opportunities that are available to them, despite their qualifications.

Siphamandla Khasag, the chairperson of the #HireAGraduate campaign, speaking to Jacaranda FM, said the graduates’ main motive is to bring back the dignity of education. High school pupils are no longer motivated to pursue tertiary education, he said, due to the astounding number of unemployed graduates.

The echoing statement of the whole campaign was “there is great frustration and discouragement regarding the value of having a degree when it doesn’t result in economic upliftment.”

The protesting graduates do not want preferential treatment from the government, but rather, to raise

awareness about the unemployment issues, and encourage discussions around the severity of this matter in our country.

The #HireAGraduate campaign gained huge traction on twitter in South Africa. Kagiso Trust’s Head of Human Resources, Isabella Liba, supports the campaign’s sentiments, “I honestly understand their frustration.

I was excited in 1998 when the Skills Development Act (the Act) was approved, I thought it would eliminate and address the high rate of unemployed graduates.

Sadly it did not… mainly because the said law is not imposing on the employers to do so but merely encouraging.”

The Act, as outlined is Section 2, encourages employers to provide opportunities for new entrants to the labour market to gain work experience; and to employ persons who find it difficult to be employed.

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20 years down the line employers are still being encouraged to do so.

The reason that most employers do adhere to this is because there is no penalty for employers who choose not to afford employment opportunities to new entrants.

“I am of the view that the Act needs to be amended so as to include consequences for employers who do not employ graduates, similarly to what we have with businesses who do not pay tax.”

Liba continued, “In the meantime, I am of the view that discussions around the severity of this matter must be encouraged, not only by students, but our tripartite; government, business and labour must be part of these discussions.

To all employers who are hiring graduates, I commend you.

Continue to make a difference in our country.’’

Our commitment is to support strategic capacity development to support non-governmental organisations, community-based organisations and local government

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SOCIAL INNOVATION Amandla Kwinana explores social enterprises as a possible solution to the sustainability of NGOs in the ever-decreasing access to funding.

The long-term sustainability of any organisation is not child’s play, more so when it comes to non-profit organisations such as non-governmental organisations (NGOs).

Most NGOs attribute their lack of sustainability to lack of funding. Where this challenge has been perceived as a hindrance to growth and longevity by some NGOs, social enterprises have turned it into an opportunity.

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ccording to social entrepreneur Shrey Goyal, few non-profits such as Kagiso Trust have created robust earned income streams, though there is an increasing trend to do so. NGOs cannot continue to rely primarily on charitable contributions, public funding and foundation grants to support their programs and cover their administrative overhead.

If, due to a bad economy, donations, grants, and public sector subsidies dried up, they may even have to shut down, says Goyal.

While NGOs and social enterprises both focus on building the social good, social enterprises differ in that they are first and foremost a business. Social enterprises run like any other company and the nature of their work allow for them to constitute the social sector.

NGOs however, despite their representation of 93% of the total number of organisations registered in terms of the Nonprofit Organisations Act (with trusts at 1% and social enterprises

at 6%), often do not yield the expected returns. This could be attributed to the mismanagement of funds, inadequate or lack of governance, irregular reporting and accountability structures, and other factors which are mandatory for businesses.

After all, the main goal of an NGO is to create social value, without much regard for the business bottomline, while the social enterprise aims for sustainability in the financial, social and environmental sense. While there are numerous NGOs who prescribe to sound business practices, there are just as many who simply seek to carry out their social prerogative and strictly focus their resources on executing their projects and fundraising.

Fundraising is crucial for NGOs and social enterprises alike. However, whereas funds given to NGOs carry little or no consequential clauses, funds directed to social enterprises are in the form of loans and contractual obligations.

Furthermore, social enterprises create self-sustaining social programmes.

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For example, a social enterprise can use funds to build a market place to address the unemployment of youth in a disadvantaged community and charge a minimal fee of R10 a day for the vendors.

The market would provide vendors with access to a larger market such as tourists and surrounding businesses while making the facilities affordable enough for the vendors. The minimal fee would in turn cover the costs of maintaining the market. In the long-term, more youth would be employed, addressing the community’s unemployment challenges.

Self-sustainability is therefore at the heart of social enterprises. Without a solid sustainability strategy and revenue generation projects, the social enterprise will not embark on its social endeavours.

This emergent ‘social innovation’ is perhaps what is needed to ensure the sustainability of NGOs. The sector has seen increased allocation of capital due to the rise of impact investing, among other factors (refer to table below).

scrutinise organisations which could possibly be masquerading as social enterprises in hopes of greater financial gain.

remain relevant to the needs of the communities they serve in order to reclaim their space and make an impact” he says.

As stated by Yoyo Sibisi, Kagiso Trust’s Head of Institutional Capacity Building, the environment in which NGOs find “Kagiso Trust views themselves today is social enterprises as not as it used to be one of the avenues in the past decade of self-sustainability or two, so naturally for non-governmental there would be a need organisations” for innovation in the sector.

“Kagiso Trust views social enterprises as one of the avenues of self-sustainability for nongovernmental organisations” Sibisi adds.

This emergent ‘social innovation’ is perhaps what is needed to ensure the sustainability of NGOs. The sector has seen increased allocation of capital due to the rise of impact investing, among other factors (refer to table below).

Some concerns have emerged based on the propriety and feasibility of the possibility of an organisation to serve two bottom lines simultaneously, reaping both financial and societal rewards.

Unless the organisation’s social objectives and impact are compromised to some degree in pursuit of profit maximization, such debates hold no water.

Nevertheless, there is a need to

Sibisi highlights two important factors for NGOs to continue servicing their purpose. “NGOs should remain as independent as they possibly can otherwise they run the risk of being pulled in all directions by funders who may have a different agenda. Secondly, it is critical to

“But it is important to note that this route is effective when the services provided by such entities are in line with their key mission; projects are self-sustainable; and the organisation retains what they purport to stand for.

As citizens and business look to more long-term solutions to the country’s social challenges, social enterprises may just be the kind of innovation NGOs should pursue.

Factors driving growth in the number of social enterprises and capital allocated to the sector Factors driving growth in numbers of social enterprises

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• •

Factors driving increasing allocation of capital to social enterprises

Increasing recognition that the private sector has an important role to play in addressing socio-economic challenges Emergence of successful models of scalable businesses that create social and environmental value Increased interest in careers that are making a difference

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• • • •

The rise of impact investing BBBEE codes compelling corporate investment in emerging black-owned enterprises Venture philanthropy Government initiatives to support the social economy through grants and loans Reduced donor and government funding to traditional Models of civil society organisations

International Labour Organization, Access to Finance for Social Entrepreneurs in South Africa (2016)

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Our financial sustainability framework is intended on ensuring a continual balance between asset growth and programme spend

KAGISO TRUST

FINANCIAL REVIEW The financial year 2015/16 marked the last of our five-year strategy. As per the strategic objective allotted to ensure Kagiso Trust’s sustainability, the organisation has grown its asset base and leveraged on investment opportunities.

OVERALL FINANCIAL PERFORMANCE A target of a net asset value of R6 billion was set in the past five-year strategy and by the end of our current financial year we have achieved a net asset value of R6.4 billion. Kagiso Trust’s investment in the FirstRand Empowerment Trust (FRET) irrefutably contributed to this achievement over the past five years. FRET currently represents circa 60% of our portfolio, with the balance being made up by Kagiso Tiso Holdings.

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agiso Capital, while in its second year, continues to manage Kagiso Trust’s investments in FirstRand and Kagiso Tiso Holdings (KTH) while maximising and leveraging on new investment opportunities with the primary purpose of ensuring the financial sustainability of Kagiso Trust.

and insist on partnerships with both the public and private sectors, return on investment is critical. Our programme delivery needs to yield results and our financial transactions transparent and authentic each year or else we risk losing our hard-earned thirty-year long credibility.

Overall, Kagiso Trust has had a successful five-year period though the current financial year (2015/16) has been challenging due to the current economic climate which saw FRET value declining by 15%.

Our work transcends the issue of money: partnerships result in greater impact and more lives being improved.

Through our programmes in socio-economic development, institutional capacity building and education development, we are confident we are making strides in overcoming poverty in South Africa.

ADDING VALUE The value which we have been able to pass on to our stakeholders, in particular the education stakeholders, has included: • Imparting best practice in the education sector.

Evidence of this is the performance of the Free State obtaining first place in 2014 and 2016, periods during and immediately following our intervention • This proves that the programme is resilient even where we have exited, in this case the Thabo Mofutsanyana district, speaking directly to the sustainability of our intervention in education development • A key value we have brought to our education stakeholders is that Kagiso Trust ‘walks the talk’; we go beyond bringing resources, we have a vested interest in our programmes as we invest our own resources into our development programmes implemented in partnership with government, as well as bring in other partners and credible service providers who can add value to maximize the impact of the interventions Over and above the education development intervention, Kagiso Trust, through Kagiso Enterprise Rural Private Equity Fund (KERPEF), has been supporting small, rural, black-owned businesses. Although a tough sector, KERPEF has been maintaining and assisting current SMMEs under the programme.

Due to the high failure risk of such businesses, Kagiso Trust acknowledges that the mainstream banking sector shies away from these investments. As such, KERPEF’s main prerogative was not purely on the investment front but mainly focused on social benefit where the aim is to increase job creation in disadvantaged communities.

KEY PERFORMANCE DRIVERS Key drivers of our financial performance as a non-profit organisation with interests in the investment sector includes the influence of the economic environment on our financial sustainability. Another important driver is the effectiveness of our programme delivery.

Because we are operating in the development space 24

This has been a memorable year; amidst celebrations of Kagiso Trust’s 30th anniversary, the Trust’s investment in the FRET matured. The BEE beneficiaries – Kagiso Trust, WDB Investment Holdings (WDBIH), WDB Trust, Mineworkers Investment Company (MIC) and Mineworkers Investment Trust (MIT) – celebrated this as a key milestone in the 10-year empowerment transaction deal as the dividends paid on the shares were then accrued directly to the beneficiaries.

LOOKING AHEAD Kagiso Trust has reflected on the past thirty years and it is evident that if the Trust is to be able to continue with its development work thirty years on, the Trust’s financial sustainability is to be well managed and grown.

Kagiso Capital will therefore be playing an unprecedented role in achieving this strategic object within the next five years. While Kagiso Capital will focus on ensuring the Trust has diversified assets, Kagiso Trust is looking forward to forging investee company partnerships within the Trust’s programmatic work.

To view the Kagiso Trust Annual Report 2015/16 and Financial Statements visit our website: www.kagiso.co.za

5 MINUTES

WITH SILINDOKUHLE Kagiso Trust’s Head of Finance Silindokuhle Chamane spared a few minutes to let us into her world.

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ome of the qualifications and traits required for my job include a degree in BCom Accounting and a Certificate in the Theory of Accounting (CTA) which is a postgraduate diploma in accounting. I then did my articles at Barloworld Limited for three years, a phase where I received competencies in professional and technical skills. In addition, one has to write two board exams accredited by South African Institute of Chartered Accountants (SAICA).

It is empowering to know that as a black woman I am not in this boardroom for BEE points but because I truly deserve it.

What most people do not know about me is that I am a wife and a mother. My husband and my son have been my pillar of strength throughout my career.

I love to dance and I’m a great cook. And I’m addicted to the television series, The Fixer.

My husband grew up in rural KZN and I love going back there for the simplicity; as much as I may seem to be modern, I truly appreciate our traditional and cultural background and homeland.

Good leadership and emotional intelligence where one is empathetic and knows how to manage people well, are necessary traits. My position as Finance Head requires me to have honesty and integrity in all I do parallel to being a good manager and leader.

There’s something special about giving to other people outside of my family and friends. It brings me great joy. I currently mark board exams and am a mentor and tutor to trainees doing their articles. I know how difficult it can be so I do my best to ensure they don’t go through that alone.

My proudest moment in my career was when I qualified as a Chartered Accountant. This has been a lifelong dream and the road was not easy; it took a lot of passion, commitment and faith.

My thoughts on growth opportunities for women in the Finance sector are that women are finally being taken seriously. I think there are a lot of gender activists who have paved the way and exposed the endless opportunities available to women in this day and age. Women are now perceived as more productive and not confined to the multi-tasking role of, and in this order, wife then mother and then employee.

Lastly, I am passionate about fashion and I can spend the whole night designing and making clothes for myself. This started when I was in university and as my body changed I started making clothing that suits fuller figured women. By making my own clothes I can be unique in how I dress and how I present myself.

What I love most about working at Kagiso Trust is how KT encourages employees to further their studies and reach their full potential. I am proud to know that KT originally started what is now known as NSFAS.

At Kagiso Trust I have seen colleagues, in particular our CEO, establish a voice for women in the boardroom.

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managing your

MONEY AND FINANCES in a sub-investment grade

In light of the recent local economy’s downgrade, finance expert Samke Mhlongo-Ngwenya gives invaluable advice on how to make your money work for you.

The month of April saw South Africa’s sovereign credit rating downgraded to sub-investment grade by ratings agencies Standard & Poor’s and Fitch. This sub-investment rating, or junk status as it is known colloquially, resulted in many South Africans going into a state of panic as evidenced by the nationwide public demonstrations following the ratings announcements.

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3. Create an additional income stream There are simple ways of supplementing your income such as taking up a board position, selling your skills on a consultancy basis after-hours, or embarking on a capital-light entrepreneurial venture. This may seem counter-intuitive but a junk status economy does present opportunities that can be leveraged for personal gain.

here are several technicalities surrounding the current credit ratings that explain why the Rand has not depreciated as much as one would expect with a “full blown� junk status rating, or as much as it did with the removal of Finance Minister Nhlanhla Nene in December 2015.

However, with South Africa being placed on negative watch by all three ratings agencies, it would be prudent for individuals to start making financial decisions that anticipate the full adverse effects that could result from us being in true junk status.

4. Rand-hedge your investments One of the major knocks that personal wealth takes in a junk status economy is brought about by the depreciation of the local currency. Investors can take proactive steps to build in a Rand-hedge into their investment portfolio and this can be done without necessarily transferring monies out the country.

A typical junk status economy is subject to rising interest rates; rising inflation as food, petrol and electricity prices increase; increased unemployment as companies retrench and the retrenched struggle to find new employment as companies are not hiring; rising cost of imported goods due to a lower local currency; and decreasing g o v e r n m e n t expenditure as tax revenues decline and the cost of borrowing increases.

Some options include buying shares in companies that have foreign revenues, or in companies that trade commodities that are foreign currency denominated, or buying Gold ETFs. It is strongly suggested that this is done with the assistance of an investment professional to avoid risking losses.

The golden investment principle to remember even in the face of such grim circumstances is that one should not panic. Instead, the following steps can be taken to minimize the adverse effects of a junk status economy, and create the necessary buffer to allow one to navigate the different financial permutations one could find themselves in:

5. Have 9-12m salary equivalent available (outside of your pension) Financial advisors typically advocate that one should have access to cash that is your 6-month salary equivalent. I would advocate that this provision be increased to at least 9-12months’ salary equivalent (excluding the proceeds of your pension) in an economy that is retrenching. There are a number of options in which this funding can be made available by a finance professional that would be an optimal mix of debt (given rising interest rates), and investments (given that some investments may currently be sitting at a loss).

1. Increase cashflow capacity The easiest way to increase cashflow capacity is to review current expenditure and take up more affordable options that still meet your changing needs.

An example is a review of your current medical aid and insurance plans.

The worst may not be over for South African consumers and the best stance individuals can take is to be proactive in structuring their finances to minimize loss and create liquidity. All this is best done with the assistance of a finance or investment professional remembering that even during what looks like a very difficult economic climate, there will still be opportunities to preserve, and maybe even create, personal wealth.

2. Stress-test your finances for changing interestrate levels One way to stress-test your finances is to set your prime-linked instalments at 1% higher than the current interest rate and assess how your cashflow and lifestyle are impacted. Conducting this exercise ahead of time allows one to make the necessary lifestyle adjustments without risking default. If your outflows still exceed your inflows even after stripping out luxuries and minimizing optional expenses, then approach your financial services provider in advance to discuss available options.

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Kagiso Trust Special Projects

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BOOK REVIEW

THE SOFT VENGEANCE OF A FREEDOM FIGHTER, Albie Sachs

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his book by Judge Albie Sachs is about a factual, first-hand experience and insights by the former South African Constitutional Court Justice and antiapartheid activist. It boggles the mind how a human spirit rose from a near assassination by a powerful car bomb in Mozambique.

Themba Mola Chief Operations Officer, Kagiso Trust

The incident leaves him robbed of most of his right arm and the sight of one eye. Yet in 1990, as a disciplined member of the ANC, he agrees to serve in the National Executive Committee and as a member of the Constitutional Committee.

it will never grow or be there again.

That there will always be an empty space where the arm used to be. He goes further to talk about his new struggle, the triumph over the bomb attack. Whilst recovering in hospital, apart from the pain in his foot his worst fear was that someone walking behind might bump into him and knock him over. The physiotherapist informs him that it will take nine months before he can walk and two years before he may feel normal and can move unconsciously and instinctively.

Two years!

Judge Albie Sachs takes part in the negotiations that fashioned South Africa into a constitutional democracy and he is eventually appointed by the first President of a democratic South Africa, Nelson Mandela, to serve in the Constitutional Court.

Judge Sachs’ soft vengeance however is not in killing or destroying others, as was done to him. But by transmuting bad into good; using his heart and brains to project as much as possible a vision of survival, struggle, triumph and humility.

The Judge takes the reader on an explicit odyssey concerning his own damaged body. He talks about what went through his mind as he realized that he would never recover his arm;

As long as the dehumanizing trauma of poverty and helplessness continue our people will not heal and therefore overcoming poverty, is the only way we can heal the wounds‌

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NOTICES

JP Morgan Corporate Race | 30 March 2017 Congrats to Angelinah, Sizakele and Matsobane for representing Kagiso Trust and finishing the race.

A warm welcome to the latest addition to the KT Family‌

We celebrated birthdays‌

Isabella Liba (HR Head) Nozipho Tshabalala (Office Cleaner) Amos Nkomontle (Handyman) Hendrick Phalama (Handyman) Victoria Maqhosha (Office Cleaner) Sadi Mpungose (Data Analyst & Project Management) Modjadji Seabi (Research, Innovation and Strategy Analyst)

January Rev Frank Chikane (03) February Mohlolo Selala (02) Amos Nkomontle (08) Maria Mokae (23) March Matsobane Sexwale (13) Andrew Maralack (11) Sadi Mpungose (12) Nontando Mthethwa (22) Linkie Shabalala (25) April Bongiwe Njobe (9)

NMMU Graduation 2017 | 4 April 2017 Congratulations to Amandla (Right) on obtaining her BA in Media, Communications and Culture.

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KAGISO TRUST FOOTPRINT

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