CSI CORPORATE SOCIAL INVESTMENT REVIEW, INITIATIVES AND PRACTICES
OCTOBER 2013
DRIVING SOCIAL CHANGE
Sustainable solutions Business objectives Skills development Partnerships Funding
INSIGHT INTO SOUTH AFRICA’S SOCIAL DEVELOPMENT PROJECTS
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Transnet TransnetPhelophepa Phelophepa-- 20 -20 20years years years ofof leading leading healthcare healthcare Transnet Phelophepa of leading healthcare and andtransforming transforminglives lives lives and transforming Since Sincethe theiconic iconicday day in in 1994 1994 when when wewe became became ademocratic democratic nation, nation, countless countless individuals, individuals, Since the iconic day in 1994 when we became aa democratic nation, countless individuals, companies companies and and groups groups have have moved moved mountains mountains toto secure secure freedom freedom and and equal equal opportunities opportunities forfor companies and groups have moved mountains to secure freedom and equal opportunities for all. all. Transnet Transnet Foundation’s Foundation’s Phelophepa Phelophepa Health Health Trains, Trains, which which use use the the existing existing rail rail network network to give give all. Transnet Foundation’s Phelophepa Health Trains, which use the existing rail network toto give South South Africa’s Africa’s remote remote communities communities access access toquality to quality quality medical medical care care one is one of these these endeavours. endeavours. The The South Africa’s remote communities access to medical care isisone ofofthese endeavours. The name name ‘Phelophepa’ ‘Phelophepa’ combines combines elements elements ofSotho of Sotho Sotho and and Tswana Tswana and, and, roughly roughly translated, translated, means means ‘good, ‘good, name ‘Phelophepa’ combines elements of and Tswana and, roughly translated, means ‘good, clean clean health’ health’ – – which is exactly exactly is exactly what what this this travelling travelling health health clinic clinic provides provides to the the 360 360 000 000 people people clean health’ – which which is what this travelling health clinic provides totothe 360 000 people it it it reaches reaches each each year. year. reaches each year. Improving Improving the the health health and and future future prospects prospects ofrural of rural rural communities communities everywhere everywhere Improving the health and future prospects of communities everywhere
In many many of our rural rural communities, communities, there there is often often is often only only oneone doctor doctor forfor every every 000 5 000 people. people. With With people’s people’s feet feet In In many of of ourour rural communities, there is only one doctor for every 55000 people. With people’s feet asas as their their only only mode mode of of transport, transport, travelling travelling to to other other healthcare healthcare facilities facilities is a is big a big challenge. challenge. The The purpose purpose of of the the cuscustheir only mode travelling to other healthcare facilities is a big challenge. The purpose of the custom-built tom-built Phelophepa Phelophepa Health Health Trains Trains is to to is bring to bring bring primary primary healthcare healthcare services services andand education education to these these people. people. The The tom-built Phelophepa Trains is primary healthcare services and education totothese people. The first first Phelophepa Phelophepa train train began riding riding thethe rails rails in 1994. in 1994. 1994. Phelophepa Phelophepa began II began operating operating in March March 2012. 2012. Together Together first Phelophepa began riding the rails in Phelophepa IIIIbegan operating ininMarch 2012. Together these these trains trains travel travel forfor 3838 weeks weeks of the of thethe year, year, visiting visiting different different rural rural communities communities each each week. week. 2008, In 2008, Phelophepa Phelophepa these trains travel weeks of year, visiting different rural communities each week. InIn 2008, Phelophepa received received the United United Nations Nations Public Public Service Service Award Award forfor excellence excellence public in public service service delivery. delivery. received thethe United Public Service Award for excellence ininpublic service delivery.
Services Services on board board the the Phelophepa Phelophepa trains trains Services onon Phelophepa trains
Each Phelophepa Health Train serves as one-stop health clinic that offers several healthcare services. Each Each Phelophepa Phelophepa Health Train serves serves as aas a simple, simple, a simple, one-stop one-stop health health clinic clinic that that offers offers several several healthcare healthcare services. services. The health clinic treatment for common illnesses and ailments, and diabetes and cancer screening. The The The health health clinic clinic offers offers treatment treatment forfor common common illnesses illnesses andand ailments, ailments, andand diabetes diabetes andand cancer cancer screening. screening. The The dental clinic performs cleaning of extractions and restorations. ItItalso has a adigital x-ray unit forfor intradental dental clinic clinic performs performs cleaning of teeth, of teeth, teeth, extractions extractions andand restorations. restorations. also It also hashas digital a digital x-ray x-ray unit unit for intraintraoral radiography. Apart from eye examinations and treatment, the eye clinic produces prescription spectacles. oral oral radiography. radiography. Apart from eyeeye examinations examinations andand treatment, treatment, thethe eyeeye clinic clinic produces produces prescription prescription spectacles. spectacles. The psychology provides aa valuable link to community psychologists, social workers and other The The psychology psychology clinic clinic provides provides valuable a valuable link link to local to local local community community psychologists, psychologists, social social workers workers andand other other professionals for follow-up assistance. professionals professionals for follow-up assistance. assistance.
Education that empowers and equips communities isiskey Education Education that that empowers empowers and and equips equips communities communities is key key
One ofof thethe strategic goals of Phelophepa is and support existing facilities sosothat residents can One One of the strategic strategic goals goals of of Phelophepa Phelophepa is to to is supplement to supplement supplement andand support support existing existing facilities facilities so that that residents residents cancan continue benefiting from quality healthcare once the train has departed. This is done by establishing relationships continue continue benefiting benefiting from from quality quality healthcare healthcare once once thethe train train hashas departed. departed. This This is done is done by by establishing establishing relationships relationships with the existing healthcare providers so that patients can be referred and continue to receive the care they need. with with thethe existing existing healthcare healthcare providers providers so so that that patients patients cancan be be referred referred andand continue continue to to receive receive thethe care care they they need. need. The nursing teams that visit the schools for screenings teach the children about basic healthcare. In addition, the The The nursing nursing teams teams that that visit visit thethe schools schools forfor screenings screenings teach teach thethe children children about about basic basic healthcare. healthcare. In addition, In addition, thethe education clinic trains 16 volunteers from each community ininpreventative healthcare atat each ofof the stations enen en education education clinic clinic trains trains 1616 volunteers volunteers from from each each community community preventative in preventative healthcare healthcare at each each of the the stations stations route. route. route.
The success is is firmly rooted in The The success success is firmly firmly rooted rooted in partnerships in partnerships partnerships
The success of of thethe Phelophepa Health Trains can be to role players who bring their expertise The The success success of the Phelophepa Phelophepa Health Health Trains Trains cancan beattributed be attributed attributed toseveral to several several role role players players who who bring bring their their expertise expertise and resources to the programme. These include approximately 20 resident staff that live on the train for the andand resources resources to to thethe programme. programme. These These include include approximately approximately 2020 resident resident staff staff that that livelive on on thethe train train forfor thethe nine months of the year in which it travels through South Africa, as well as approximately 40 final year medical nine nine months months of of thethe year year in which in which it travels it travels through through South South Africa, Africa, as as well well as as approximately approximately 4040 final final year year medical medical students that serve on Phelophepa each week. With the support of these people, Transnet Foundation has students students that that serve serve on on Phelophepa Phelophepa each each week. week. With With thethe support support of of these these people, people, Transnet Transnet Foundation Foundation hashas managed to supply primary healthcare to over 14 million South Africans since 1994. managed managed to to supply supply primary primary healthcare healthcare to to over over 1414 million million South South Africans Africans since since 1994. 1994.
Where to find the Transnet Phelophepa Health Trains in 2014 Where Where toto find find the the Transnet Transnet Phelophepa Phelophepa Health Health Trains Trains in in 2014 2014 Eastern Cape and KwaZulu Natal – January to March Eastern Eastern Cape Cape andand KwaZulu KwaZulu Natal Natal – January – January to to March March Free State – April to July Free Free State State – April – April to to July July Northern Cape – June to August Northern Northern Cape Cape – June – June to to August August Western Cape – August to September Western Western Cape Cape – August – August to to September September For more information go to www.transnetfoundation.co.za ForFor more more information information go to gowww.transnetfoundation.co.za to www.transnetfoundation.co.za
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Mpumalanga – March to May Mpumalanga Mpumalanga – March – March to to May May Limpopo – May to July Limpopo Limpopo – May – May to to July July North West – July to September North North West West – July – July to to September September
Transnet Cares Transnet Transnet Cares Cares
@Transnet_Cares @Transnet_Cares @Transnet_Cares
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contents October 2013
PARTNERSHIP WITH GOVERNMENT
66 UPFRONT 5 FOREWORD: Poverty to prosperity 11 IN CONTEXT: Top trends, new influences 12 SPENDING PATTERNS: CSI funding THOUGHT LEADERSHIP 18 Branding for non-profits
Decades ago, all it took was a picture of a hungry child or lonely panda to open hearts and wallets. No longer. People today are more media-savvy, street-smart and plain too jaded to hand over money to every cause that asks for their help. In this environment, branding is everything Gavin du Venage.
20 Case Study: Hospice
Some non-profits are a tougher sell than others. Few understand this better than Hospice, an organisation that deals more directly than most with human mortality.
23 It begins with us
Much of a country’s success depends on the involvement of businesses in their communities. Because of the economic power big corporations hold, they are in a position to make a real difference when it comes to the many challenges our country faces - Ronnie Khoza.
‘We cannot do it alone and that is where the cooperation between the NGO sector, the public sector and the private sector needs to happen.’
ENTERPRISE & SOCIAL DEVELOPMENT 28 Building an entrepreneurial spirit – ways of being, ways of seeing
Entrepreneurship is an overused and often misunderstood term. It is falsely believed to be a set of finite skills and a single lofty achievement, rather than a continuous journey of development, growth and experience - Jonathan Marks.
34 Making sense of social engagement
As the social entrepreneurship movement gains momentum in South Africa, the once-clear distinction between profit and not-for-profit companies has become increasingly blurred - Lesley Williams.
39 Profile: The Hope Factory
The Hope Factory is an established enterprise development organisation that mentors and trains potential black entrepreneurs to develop life and business skills, in order to create new businesses or to grow their existing ones.
43 Profile: Thuthuka
Last year the Thuthuka Bursary Fund (TBF) programme produced its first crop of black chartered accountants, 26 in all, bringing to life the true meaning of Thuthuka – to develop.
44 Profile: MMI
With the 2015 deadline for achieving the United Nations Millennium Development Goals creeping ever closer, the foundation set up by insurance giant MMI Holdings is providing support to healthcare and education goals that align with those of the UN.
46 Profile: Medscheme
The healthcare sector presents a unique opportunity to use enterprise development initiatives to promote the government’s 10-Point Plan on Health, especially the need to increase the number and quality of healthcare workers.
50 development is a collective effort
Slowly, but surely, the National Development Plan is gaining traction. It is starting to become a natural inclusion in our nation’s vocabulary – and not a moment too soon, as implementing this vision needs to happen in a relatively short period of time and with very limited resources - Tshidi Mokgabudi.
53 Profile: iKwezi Agricultural co-op
Started by five women in 1997, the Ikwezi Vegetables and Poultry Co-op in Mpumalanga is now gearing up to export its produce.
54 Profile: kaelo engage
What executives should know about communicating social development Sarah Campbell
TOWARDS 2030 56 Development Solutions: we are Falling, not failing
Can we provide the right enabling environment for communities to solve their own problems? A young social entrepreneur set out to make a difference in rural Limpopo and the North West Thabang Skwambane.
59 Profile: The Lonely Road Foundation
The Lonely Road Foundation is a development charity aiming to bring life, hope and opportunity to orphaned and vulnerable children in rural and underprivileged communities in South Africa.
66 Innovating Success: fair trade Launching a CSI initiative that seeks creative ideas and community involvement to respond to social challenges - Saxen van Coller.
69 Profile: Woza moya
What started as a humble effort to meet the needs of HIV/Aids patients in rural KwaZulu-Natal has now blossomed into a fully fledged NGO.
70 Profile: MASDT
MASDT is coming up with innovative solutions for emerging farmers, with its new Mobile Agri Lab.
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FOREWORD FROM POVERTY TO PROSPERITY The social development sector must change the way it works and with whom it works. We need a method that is commensurate with the scope and nature of the problem. By Reana Rossouw, owner and founder of Next Generation Consultants
‘Past performance should not be seen as an indicator of future success’. Anyone who has ever had to decide among social investment options should be familiar with this warning. No admonition is more appropriate for the social development industry today. Since the 1980s, this sector has grown and produced staggering returns: billions of rands in corporate social/community investment; millions invested in school and healthcare infrastructure; thousands invested in community-based programmes and initiatives; hundreds of affordable housing units built; the development of an extraordinary number of high-performing local, regional and national non-profit organisations; and the creation of some of the most successful private-public partnerships the nation has ever seen - for instance, the distribution of anti-retrovirals for HIV/Aids, home-based care solutions for orphans and the elderly, the growth in early childhood development solutions, etc. These successes were largely achieved in a different era, before community was redefined by revolutionary forces of change - primarily, globalisation and the internet - that have reshaped not only South Africa, but also the world and South Africa’s place in it. Despite the heady successes in this sector, our work has not had the effect that many of us intended: namely, a material impact on the number of South Africans living in poverty. Our long-held assumptions about the levers, required addressing poverty in a globalised world, and the appropriate role and size in that effort, are being challenged. Social development must move from an industry viewed by many as focused on managing decline - to one that is ushering in change in new collaborative ways, disrupting obsolete and fragmented systems, keeping an eye on under-invested places, and connecting low-income people to economic
opportunities wherever they exist in this hyper-connected world.
WHAT HAS CHANGED? Over the last four decades, our industry has made dramatic strides in rebuilding the physical fabric of society. It has mobilised people and resources, attracting billions of rands of investments, and new community partnerships linked to urban greening and revitalisation strategies have restored a basic sense of safety in our neighbourhoods. Yet despite great successes, we face persistent poverty and the prevalence of fragile families. The central challenge for community developers and their partners is to deploy effective strategies to promote human development. Meeting this challenge requires confronting major systems such as education, workforce development, skills development and job creation. These systems must realign to prepare today’s residents to meet tomorrow’s workforce needs. In a 21st century world, how do we define ‘community’ and what role should it play in our work? Can strategies that concentrate on narrowly defined development interventions create broadly shared economic prosperity? If scale, collaboration and partnership are key and systems need to be changed at a national level, what is the role for traditional community development practitioners? Can an industry largely built on small, once-off interventions, pivot to be influential in approaches where those interventions are important, but insufficient? If transformational changes have occurred, why are so many of the very poor still trapped, symbolically and literally? These questions are uncomfortable. They challenge our long-held assumptions about community development and poverty alleviation. They also demand a fundamentally redefined notion of social change and an innovative approach to implementing it.
FIXING THE METHOD The social development sector must change
the way it works and with whom it works. We need a method that is commensurate with the scope and nature of the problem. We have gone ‘all in’ on local strategies, ignoring global realities. We have become technical experts on singular interventions when we need to lead a new way of adaptive problem-solving. Our new social development methods must accomplish four things: 1. INVEST IN DYNAMIC COLLABORATION In the words of Dow Chemical CEO Andrew Liveris, ‘collaboration is the new competition’. New realities mean that old-line institutions must break out of old paradigms. In order to effect long-term solutions, what is required is the right pool of talent and entities (both public and private), participants who bring formal and informal authority to the table, and the setting aside of old mental models of organisation and development. 2. END WORKAROUNDS Our systems are failing us, largely because they were built for different times and on now-outdated assumptions, such as an entire education system designed around the imperative of a matric certificate to obtain a job in a particular industry sector or to get access to a university. Yet, overhauling systems has proven to be very difficult. As such, the non-profit sector has responded largely with ‘carve-outs’ and workarounds, such as specific maths or science programmes. We have been astonishingly innovative in some instances, but this innovation has remained on the periphery. We have accepted that we are programme-rich but systems-poor. We must commit to long-term systems innovation, not another new programme. This year we have seen a new partnership between government (Department of Education), the corporate sector and the social sector to take on the challenge with education. This initiative will not only build a multi-sector intervention, it has also adopted a shared vision for how to fix education from
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FOREWORD
cradle to career. It will use a combination of data-driven decision-making and public accountability to drive results and move funding to programmes that work. 3. ENGAGE PRIVATE MARKETS Community development at a corporate level can engage markets at scale, and some parts of the non-profit sector look on this with envy. We must implement this distinct competitive advantage, but in even more ambitious ways. And we must help the development sector to see how it can use its investments and practices for greater social results. On the capital side, we need to build a practice of social impact investment that is at least as robust in South Africa as it is abroad. We need to look closely at how we might help to bring private-sector capital into publicsector infrastructure investments, primarily at the local level. International financial institutions are innovating in this area; we should be able to do so as well. 4. USE ACCELERATORS There is no way to avoid the difficult, multisector work required to change long-broken systems, but there are powerful ways to accelerate those efforts. Technology has the greatest potential to do that when it is intelligently combined with the public sector. Big Data and social media: No area has more promise than Big Data, which a recent New York Times article described as ‘shorthand for advancing trends in technology that open the door to a new approach to understanding the world and making decisions’. The great promise of Big Data is that it can provide us with information about where our public funds are actually working, and where our human and financial resources should be concentrated to make the biggest difference. Another application of technology with great promise for accelerating change is social media. Whether via crowd-based funding of a start-up or local business, or microloans made available, social media has the capacity to make accessible previously inaccessible resources. It also enables citizens to voice their opinions on matters that are critically important to them. The road to the future: By engaging the corporate, development - and government sectors in strong public-private partnerships, the social development industry succeeded in creating a remarkably durable financing system. Its diversified funding base - government and private sector investment—and broad constituency are key to this success.
WHAT, THEN, IS THE FUTURE OF THE SOCIAL DEVELOPMENT SECTOR? It lies in turning the architecture we have created to meet urgent challenges of human development. We need to develop national intermediaries to connect local efforts in education, employment, health promotion and family asset-building with public and private resources and social-sector investors. It is unclear how such an effort will ultimately be financed, but private seed capital will be crucial, as it has been for many social innovations. The role, then, of the social development sector will again be to find practical solutions to connect communities and capital. It is equally important that the movement step up its game in telling the stories of what works for communities, making it clear that these investments have real impact on real lives. Too often, our political conversation drifts into abstractions.
IN CLOSING I must underscore the need to address an urgent threat to all the work we do to strengthen and improve the life chances of all South Africans. Bruce Katz of the Brookings Institution said that ‘successful organisations cannot stand still in times of disruptive change. They maintain their core goals and values, but readjust their strategies and tactics to reflect new realities.’ This same tenet must be applied to the social development sector. The road to the future requires that we move from a geographically bounded, project-specific strategy, to one that reflects the needs and realities of the 21st century, prosperity development. Prosperity development focuses on people and opportunity. Its goal is the convergence of vibrant communities, effective systems, rich networks and quality jobs. Ultimately, prosperity is possible only if we dramatically increase the number of South Africans who have quality jobs - that is, jobs that offer economic security and wealthbuilding potential. In this time of distributed leadership, no other sector has a more relevant perspective and set of skills; this should allow us to have significant influence on the shaping of our nation’s future. We must commit ourselves to working in new ways, making new friends, taking different risks, and challenging orthodoxies believed to be unchallengeable. Nothing less than the economic future of our country and the values undergirding our democracy are at stake.
PUBLISHER Picasso Headline (Pty) Ltd Times Media Building Central Park, Black River Park Fir Street, Observatory, 7925 Tel: +27 21 469 2400 fax: +27 21 462 1124 CONTENT MANAGER Raina Julies COVER DESIGN Thami Mahlangu COPY EDITOR Katherine Graham PROOFREADER Joy Capon CONTRIBUTORS Steven Macbeth, Reana Rossouw, Ronnie Khoza, Gavin du Venage, Lesley Williams, Saxen Coller, Nazareen Ebrahim, Thabang Skwambane, Dr Jonathan Marks, Yuven Gouden, Khetiwe Nkuna, Tshidi Mokgabudi PRODUCTION EDITOR Shamiela Brenner HEAD OF STUDIO Jayne Mace DESIGNER Mfundo Ndzo SALES PROJECT MANAGER: Lynton Nocky lyntonn@picasso.co.za SALES TEAM Ryan-Wade Hannival, Frank Simons, Clinton Vurden, Glanville Valentine, Jerome van der Merwe, Dennis Motingwe BUSINESS MANAGER Robin Carpenter-Frank robinc@picasso.co.za FINANCIAL ACCOUNTANT Lodewyk van der Walt
SENIOR GM: NEWSPAPERS AND MAGAZINES Mike Tissong ASSOCIATE PUBLISHER Jocelyne Bayer Copyright: Picasso Headline. No portion of this magazine may be reproduced in any form without the written consent of the publishers. The publishers are not responsible for unsolicited material. CSI is published by Picasso Headline Reg: 59/01754/07. The opinions expressed are not necessarily those of the publishers. All advertisements/advertorials and promotions have been paid for and therefore do not carry an endorsement by the publishers.
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Building a school of the future, for South Africa’s future. Siemens is helping Mvezo‘s community to erect the Mandela School of Science & Technology.
Science and technology have the power to shape South Africa’s future. That’s why Siemens is developing the Mandela School
The school’s curriculum will develop expertise which will be vital in building South Africa’s infrastructure for years to come.
of Science & Technology as a sustainable contribution to technological education. Such expertise will be vital in improving South Africa’s infrastructure and creating job opportunities for years to come. The school is being built in partnership with the Mvezo Development Trust and the South African Department of Education. Situated in Mvezo, the birthplace of Madiba, it’s another example of our ongoing commitment to providing answers that last and contributing to a brighter future for South Africa.
siemens.com /answers
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Sustainable food security remains our ultimate goal Grain SA is an autonomous and voluntary agricultural organisation who aims to ensure economic prosperity to all commercial and developing grain producers in South Africa. This is done through: of the free market as base for sustainable and protable grain production with all stakeholders in the creation of a policy environment that benets all South Africa’s grain producers Sustainable land reform that is in the interest of the South African agricultural sector Support and empowerment of developing farmers to become sustainable commercial grain producers
Protection
www.infoworks.biz
Co-operation
Tel: +27 (0) 86 004 7246 Fax: +27 (0) 12 807 3166 PO Box 74087 Lynnwood Ridge 0040
www.grainsa.co.za https://www.facebook.com/grainsa
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Towards the dream of a united and prosperous agricultural sector G
rain SA is contributing to the dream of a united and prosperous agricultural sector and realises that food security and food sovereignty need to be addressed. Income generation for those who have access to land, protection of the natural resources and job creation are of the utmost importance to Grain SA.
Great potential, hard work and challenges
Agriculture is a sector that has the potential to contribute to all the pillars of rural development and the Grain SA Farmer Development Programme (Grain SA FDP) is one of the core business units of this non-prot organisation. However, the Grain SA FDP cannot exist without partnerships and these partnerships are with the Maize Trust, the Winter Cereals Trust, the Sorghum Trust, the Oil and Protein Seeds Development Trust, AgriSETA, the Department of Rural Development and Land Reform (DRDLR), the Department of Agriculture and Rural Development (DARD) in North West as well as the ARC. In the light of the above constraints, the Grain SA FDP approaches farmer development through different projects and programmes. Developing farmers are assisted through study groups, demonstration trials and farmers’ days. Training courses are also part of the service that the Grain SA FDP renders to developing farmers and since October 2012 until the end of July 2013, 213 training courses have been presented. These are funded by the Maize Trust, the Winter Cereals Trust, OPOT and the ARC. The training courses are presented to developing farmers and the farm workers on the farms of developing and commercial farmers. The training courses are important in that they not only explain the “what” that has to be done, but also the “why”. Knowledge and information are also disseminated through the Pula Imvula – a magazine for developing farmers that is distributed to more than 20 000 readers each month and is available in seven languages (English, Afrikaans, Sesotho, Setswana, Sesotho sa Leboa, isiZulu and isiXhosa).
Farming has always involved hard work and farmers are people that are not afraid to work hard. However, these days, grain farming requires far more than just hard work. Certain factors that slow down the progress of development have been identied. These include: Lack of knowledge, skills and experience: Farming is a very wide eld and one needs to understand a huge diversity of issues. Theoretical knowledge alone is not enough – farmers learn from years and years of experience. In the South African context, developing farmers are mostly new entrants to the game and the rules of this game are complicated – good performance requires extreme tness. With the prot margin being under extreme pressure, there is no margin for error. How do you gain experience and who will catch you if you fall? Lack of production credit: Developing farmers are nding it increasingly difcult to access production loans, seeing as the prot margin is small and the risks are high. It is to be understood that nanciers cannot lose money – they need to invest clients’ money wisely. Lack of adequate tractors and equipment: Years of small prots have resulted in the decline in the condition of the eet of tractors and implements – one needs to make money so as to be able to invest in mechanisation. Constraints of land and land access: Crops have to be produced on land which has the potential to yield a crop adequate to cover all production costs. Some farmers have access to lower production land where good yields are not possible. In the wetter eastern parts of South Africa, large quantities of lime are needed as the pH of the soil is too low for protable crop production (the farmers cannot afford to pay for this lime). Many farmers are making use of communal land – often this is not adequately fenced and livestock damage the crops. Very small pieces of communal land pose challenges to efcient mechanisation.
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Grain SA FDP in several provinces
The personnel involved in the programme are situated in several provinces and the Grain SA FDP continues to service developing farmer programme members in the Free State, North West, Mpumalanga, KwaZulu-Natal, the Eastern Cape and the Western Cape. The Grain SA FDP is also a partner to the recapitalisation programme of the South African government and personnel of the Grain SA FDP have worked with two Mpumalanga farmers, 15 Free State farmers and 14 North West farmers – all part of the Department of Rural Development and Land Reform (DRDLR). 109 farmers were also assisted through funding made available by the Department of Agriculture and Rural Development (DARD) in the North West Province. The farmers in the recapitalisation programme planted more than 14 000 ha during this past summer crop production season. Grain SA also manages a programme to excite learners about agriculture. Learners in grade 9 are visited three times during the year and are shown DVD’s on the various aspects of agriculture. During the second quarter of 2013, 246 schools were visited and 36 625 grade 9 learners were addressed. A united and prosperous agricultural sector is a dream that can come true – Grain SA believes this and is working hard towards a better and food secure future for all South Africans. For more information, go to www.grainsa.co.za.
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ADVERTORIAL
NEVER MESS WITH A WINNING FORMULA! Mercedes-Benz SA replicates its education model
M
illions of South Africans face a bleak future as the toxic triad of poverty, inequality and unemployment creates havoc with the stability of communities and the robustness of the economy. Through the intervention of corporate South Africa, great strides are being made to mitigate the effects and contribute instead to long-term solutions. The Mercedes-Benz group of companies in South Africa (MBSA), a major manufacturer and distributor of passenger cars and commercial vehicles, has a long-standing commitment to education, dating back to the 1980s. This includes a thriving technical training centre and trade test centre, as well as a comprehensive bursary and graduate training programme. Over and above these initiatives, however, education remains high on the company agenda, with a comprehensive focus as part of the MBSA Corporate Social Investment (CSI) and Employee Volunteerism programmes. Described as ‘an automotive company with a heart’, MBSA focuses 50% of its CSI spend on the education and inspiration of our youth, with projects that span the whole range from early childhood development, to primary and secondary schools, as well as tertiary level. One such project, the School Transformation and Empowerment Programme (STEP), effectively proves the benefit to society of the approach that MBSA takes – transcending the trend towards charitable donations and instead oncentrating on projects that are sustainable and have the potential to increase the positive impact on society. Says Corporate Affairs divisional manager for MBSA,
TOP: Mercedes-Benz SA staff celebrate the replication of the School Transformation and Empowerment Programme in the Tshwane area, at an event in Ga-Rankuwa BOTTOM: Putting its corporate focus on sustainability into practice – the MBSA 2013 Mandela Day outreach was held at a STEP beneficiary, the Dr AT Moreosele High School in Mabopane, where learners were treated to an industrial theatre advocating the message of HIV and Aids prevention. HIV and Aids forms the second pillar of MBSA’s CSI programme, the first being Education.
CONTACT DETAILS www.mercedes-benzsa.co.za
Mayur Bhana: ‘The STEP project first piloted in 2009 in the Eastern Cape, where the company has its manufacturing plant. In the subsequent years, the success of this programme at the 15 Eastern Cape schools motivated MBSA to replicate the model to other beneficiary institutions.’ In 2012, 14 schools were selected in the Tshwane education district, in co-operation with the two stakeholder organisations involved in the project: the Department of Education, and MBSA’s implementation partner on the project, Funda Afrika. STEP approaches school development in a holistic manner. The empowerment of the current intake of learners is balanced with developing functional and effectively managed schools, as well as educator development. In this way, the focus is on skills development, and the project is able to build a lasting legacy at the schools it supports, a boon for generations to come. Activities include strengthening school governing bodies and administration teams; improving financial management and curriculum implementation; supporting principals and staff; learner development and extra classes to improve pass rates; and life skills training and career guidance. Education projects such as STEP, support the creation of exceptional educational standards at schools in the provinces where the company operates (Eastern Cape and Gauteng), and from where it draws employment. ‘For us this is a good example of ensuring sustainability – where one element of our business feeds into, and supports, another in interconnected cycles,’ concludes Bhana. MBSA – Building Vehicles, Building Communities!
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IN CONTEXT A round up of the top trends and new influences in the world of corporate social investment. By Nazareen Ebrahim SOUTH AFRICA ROUND-UP
BE A THOUGHT LEADER
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orporate social responsibility and development programmes are most successful when they are shown to be sustainable and support the building blocks of a community. These building blocks include education, development and healthcare, science and technology, arts and culture. KZN Youth Empowerment Project director Malusi Mazibuko explains how an NGO can get funding: These methods include international donor funding, for example USAid, John Hopkins and the Bill and Melinda Gates Foundation, and national and local government support. In South Africa, state funding can be sourced from any one of the government departments or public bodies which would be willing to invest in an initiative. CSI programmes supported by the private sector represent another funding option. An NGO presents a proposal to a company, which will assess the value and sustainability of the project, and choose whether or not to invest. Fundraising and philanthropic contributions are two more funding types. ‘The most sustainable of these methods’, says Mazibuko, ‘are CSI programmes. A business that only makes money is a poor business. Investing in an organisation not only looks good for the business, but has positive tax implications too.’
INTERNATIONAL ROUND-UP
PUTTING YOUR MONEY WHERE YOUR MOUTH IS
Nearly half of consumers globally are willing to pay more for socially responsible products. This is according to Nielsen’s 2012 Global Corporate Citizenship Survey. The study sampled more than 28 000 internet respondents in 56 countries. ‘Knowing what causes are most important to the socially-conscious consumer may help brands prioritise their social investments,’ says Nic Covey, vice-president of Nielsen’s corporate social responsibility programme. ‘The next step is to understand precisely what causes are important to a brand’s individual customers.’ Sixty-three percent of these socially conscious consumers are under the age of 40 and consult social media before making purchase decisions. Their priority causes? The environment, education and hunger.
LEAP OF FAITH
The Fortune 500 list is one on which most businesses covet a spot. LEAP Science and Maths Schools have decided to introduce South Africa’s own Fortunate 500 Club, for companies that want to combine profit and philanthropy. The Fortunate 500 Club, gives businesses and citizens a chance to be part of an active force for good, and sends a clear message to South Africans: your contribution enables LEAP to support high-quality education for the most disadvantaged young people. The key aims are for individuals and companies to acknowledge their fortunes and to set an example by using this wealth for a greater cause. To find out more about the Fortunate 500 Club, visit www.leapschool.org.za.
ENVISIONING THE FUTURE
Director of the think-tank Kaleidoscope Futures and founder of CSR International, Wayne Visser, has released 10 Forecasts for 2020 on Corporate Sustainability and Responsibility. Some of the forecasts are that businesses are moving on from the first four stages of CSR (defensive, charitable, promotional and strategic) to practising transformative CSR, and that reliance on business codes such as the UN Global Compact, ISO 14001 and SA 8000 will steadily decrease. Instead, companies will be judged on how creative they are in using their products and processes to deal with social and environmental problems. He further predicts that, encouraged by government policies and incentives, companies will step up their product offering and no longer sell unethical product ranges, which in turn will allow consumers to enjoy guilt-free shopping. He adds that many of today’s sustainable business practices will, in the future, be mandatory requirements.
THOUGHTS TO LEAD
‘Achieving sustainable development is the overriding challenge of the 21st century.’ – Vuk Jeremic, President of the United Nations General Assembly ‘Social entrepreneurship is gaining traction.’ –Nick Rockey, Trialogue MD ‘To make meaningful, sustained progress in reducing poverty and inequality over the next two decades, South Africa needs to write a new story.’ –National Development Plan of South Africa, 2011 ‘Funding of advocacy is a problem. Corporates don’t believe they can get the most results out of funding advocacy, as it is not results-focused. In order to get corporates to fund advocacy, you need to dovetail your needs with the corporate’s interest.’ –Eugene Daniels, education connector for the Citizens Movement ‘The outcomes-based education standards we use to assess intelligence place everybody in the same pool, and we are not able to leverage diversity and skill set. Globally, the benchmark for inclusion is very low. In South Africa, we’re on negative 10 and we’re striving for zero.’ –Edward Ndopu, founder of Global Strategy for Inclusive Education
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spending patterns
A CSI funding snapshot Corporate social investment is a drop in the ocean compared to government’s spending on social services – CSI spend is equivalent to about 1% of the state’s budget. Yet for many individual organisations and in specific sectors, such as education, corporate funders play a crucial role. Trialogue’s annual research with companies and NPOs reveals the trends in the sector. By Michelle Matthews
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orporate social investment makes a significant contribution to the funding of social development in South Africa and is an important element in the funding mix for many non-profit organisations (NPOs). Every year for over a decade, Trialogue has conducted primary research with companies and NPOs, investigating the flow of corporate social investment spend, as well as trends in development practice in the sector. The following are some of the key findings from the 2012 survey.
Methodology and sample Primary field research was conducted during June and July 2012. Questions related to activities over the past recorded year, which usually referred to a one-year period spanning 2011 and 2012. Face-toface interviews with corporates were undertaken based on an in-depth questionnaire. NPOs were surveyed through a shorter, self-completed online questionnaire. For the 2012 survey, 108 companies completed the corporate questionnaire and 182 companies the NPO questionnaire.
investment contributions made by companies, including: • Spending on social investment by company divisions or operations that are not part of a central CSI function; • ‘License-to-operate’ spending on social investment, such as spending for local economic development (LED) requirements in the mining sector; • Donations of goods or services; and • Donations of employee time during work hours. A narrow definition of CSI includes only spending by a dedicated CSI function or department. In terms of this narrow definition, CSI expenditure amounts to just over R5 billion.
CSI is primarily driven by development needs Companies usually seek a balance between addressing developmental and business needs when allocating CSI funds. Factors such as development and government priorities were frequently considered by Trialogue’s sample. From a corporate perspective, the geographic footprint of the business, and linkages to core products and services were also taken into account. Preferences of staff, management or external stakeholders had little, if any, influence on CSI decision-making. Graph 2: Factors influencing CSI fund allocation
CSI: Significant and growing Trialogue estimated the amount spent on CSI in 2012 at R6.9 billion. This amount represents a nominal growth of 11.3% over the previous year, or 5.4% if adjusted for inflation. CSI expenditure has grown significantly in real terms over the past 10 years. This higher growth is attributed to better and more inclusive accounting of CSI expenditure. Graph 1: Nominal versus real growth in CSI expenditure since 2000
The education sector receives the most support
The estimated CSI expenditure of R6.9 billion is based on a wide definition of CSI that takes into account all types and forms of social
In 2012, corporates directed most of their funding into education, social and community development, and health (70% of total funding). Despite increased government spending on education, the country’s education system faces persistent challenges in terms of quality and effectiveness of learning and teaching at all educational levels. A functional education system provides a pipeline of skills for companies and is vital for the country’s economic growth. For these reasons, corporate investment in education continues to grow, and in 2012 the sector received more than 40% of CSI expenditure for the first time in 10 years. In terms of corporate support, the vast majority of corporate respondents supported projects in the education sector (93%) and the
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“In 2012, corporates directed most of their funding into education, social and community development, and health (70% of total funding).”
social and community development sector (80%). In comparison, only 40% of companies supported projects in the health sector in 2012, a marked decline from 63% in 2009. In part, this is due to the fact that HIV/Aids initiatives – previously a significant area of CSI support – are now not only funded by international donors, but also by the South African government.
ecosystem and need to remain cogniscant of the impacts that their funding decisions will have on these organisations. Graph 5: NPO income by source
Graph 3: Distribution of CSI by development sector
Mixed fortunes for NPOs
NPOs receive the greatest share of corporate funding Over 90% of corporates in the sample contributed to NPOs, which received 55% of the total CSI budget in 2012. This makes NPOs the largest category of CSI recipient.
NPOs were asked whether their income had increased or decreased over the past year. In 2012, more NPOs had experienced a decrease (38%) than an increase (33%), with 29% reporting that income had stayed the same. Among those respondents that had experienced an increase in income, the size of increase was an average of just 1%. Taking inflation into account, this income ‘increase’ in fact represents a net real decline in year-on-year revenue. Therefore all NPO respondents saw a net real decline in revenue in 2012. Graph 6: Changes in NPO income
Graph 4: CSI funding channels
On the flip side, in 2012 corporates contributed almost a quarter of the funding to NPOs in the sample, while government contributed just over 20%. Companies therefore play a crucial role in the NPO-funding
Even though it accounted for only 8% of funds, self-generated income was the biggest growth area, with more than a third of NPO respondents experiencing an increase in income from this stream. Approximately 30%
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spending patterns
“Although not implemented by an NPO, the Transnet Foundation’s Phelophepa Health Care Train is an excellent example of the benefits accrued over time..”
of NPOs experienced a net gain or loss in income from companies, which demonstrates how volatile corporate funding can be. Graph 7: Sources of growth or decline in funding for NPOs
Formal partnerships support success Working together with government is usually deemed essential to CSI project success. Most projects need to align with government-led programmes, draw on resources or institutions provided by government or rely on government to maintain them in the long term (for example, infrastructure projects). Corporates that have developed productive partnerships with government attribute their success to having written agreements with clearly articulated roles in place, as well as continual communication between parties. Graph 8: Partnerships in the CSI sector
Supporting sustainable projects For many years, Trialogue has been advocating that corporate funders move away from funding year by year, an approach that creates financial uncertainty and an administrative burden for NPOs. In 2013, Trialogue’s research will look at the average investment period for CSI projects, which anecdotal evidence tells us has extended over the past decade. The benefits of long-term investment in social change include reduced costs and increasing evidence of impact. Although not implemented by an NPO, the Transnet Foundation’s Phelophepa Health Care Train is an excellent example of the benefits accrued over time. The first Phelophepa train was launched in 1994 as a three-carriage eye clinic. The Transnet Foundation introduced its ‘Phelophepa II’ health train in January 2012, expanding its highly successful healthcare programme to more poor communities. Both trains will run in 2013, with the intention of almost doubling the number of patients treated annually to 370 000. It is estimated that it will cost R102 million to run the health train services in the 2013/14 financial year – less than R300 per patient. The healthcare services provided include basic eyecare, dental care, counselling, and basic screening services for high blood pressure, TB and diabetes. The train is staffed by volunteer medical students, who gain valuable hands-on experience working on the mobile clinic. Roche, an international pharmaceuticals company, Colgate-Palmolive and Telkom are among the partners in Phelophepa II. Formalising partnerships, building broader collaborations that leverage different partners’ strengths, keeping open lines of communication and planning exit strategies are among the ways that NPOs and companies can build productive relationships.
However, despite the growing consensus that partnerships are key in implementing effective development projects, no obvious trends reflecting this have arisen from Trialogue’s annual surveys. Partnership activity remains relatively unchanged from year to year. This is likely due to the practical difficulties of coordinating partnerships. As implementation partners, NPOs and CBOs usually enter into formal partnerships with corporates. Formal partnerships with other stakeholders are not widely adopted.
The value of sharing knowledge Through its annual research, as well as its training, Making CSI Matter conference and CSI Matters Forums, Trialogue continues to challengecompanies and NPOs to improve their management of funding and projects. CSI faces massive challenges with only limited resources and yet must deal with high expectations of those hoping to benefit from contributions made. It is therefore essential that corporates, government and civil society discuss what is working, what is not, and how we can work together to ensure that every precious rand spent by companies on development is used to good effect. Trialogue’s latest research will be made available in The CSI Handbook, published in November 2013.
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Welcome to the Attridgeville township. This isn’t where you’d expect South Africa’s engineers to grow up. But the Bokgoni Technical High School regularly feeds engineering students to universities throughout South Africa. Volkswagen trains teachers in Maths and Science and provides textbooks and Science equipment to give ambitious kids the chance to succeed.
Visit vw.co.za and join facebook.com/VWSA
Thobeka quit school to take care of her sick mother and baby sister. The Volkswagen Community Trust heard about her plight and sent someone to help. They also provided weekly food parcels, which are grown in the community vegetable garden, to make her mom stronger. Thobeka is now back at school. Because that’s where we believe bright, young girls should be.
Ikhwezi Lomso means “morning star” in Xhosa, but for the children of the KwaLanga area of Uitenhage it now means a whole lot more. Built by the Volkswagen Community Trust, Ikhwezi Lomso Pre-Primary provides 150 kids with world-class facilities, a safe environment to learn and the key to a brighter future.
Our youth development programmes give young people access to role models, and in turn the impetus to stay in school and avoid HIV and gangs. Those who have been through our LoveLife Youth Centre are more likely to have degrees and twice as likely to be working, than their peers.
Join us on our journey for good. Volkswagen for Good is about people. It’s about making life better for everyone, not just a few. From individuals to communities, environment to enterprise – it’s not about fixing one part, but making sure all the parts work so we can move forward together. Because people are at the heart of Volkswagen, we need to make sure they are happy, healthy and whole. Volkswagen for Good is a journey - and it’s only just begun. For many more stories about the lives we’ve changed visit vw.co.za
OGILVY CAPE TOWN 60194/E/REV
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Advertorial
MAKing A DIFFERENCE, EARLY IN LIFE Nashua Children’s Charity Foundation
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he Nashua Children’s Charity Foundation philosophy is that by making a difference now in the lives of young, underprivileged children, it is laying the foundation to give them a better start in life. Since its founding in 2006, the foundation has grown from being a charity involved in outreach programmes in township schools to becoming a registered nonprofit foundation, supporting 54 charities and a number of ad hoc charities on a monthly basis. The foundation is dedicated to caring for children, protecting their welfare, and preparing them to become positive contributing members of society in the future. It assists includes orphanages, soup kitchens, safe houses, outreach centres, daycares, crèches and special-needs homes. Fully funded by Nashua Limited, Mobile, Communications, Finance, Kopano and a network of its franchises, the Nashua Children’s Charity Foundation provides about 360 000 meals to as many as 12 000 children per month. In addition, smaller charities that do not receive funding from other sources are assisted by the foundation, with a focus on addressing the basic needs and education of orphans, as well as impoverished and vulnerable children. Further, through the feeding initiatives the foundation manages on a monthly basis, it supports sustainable living by assisting charities each year in planting vegetable gardens, with the help of Reel Gardening. These vegetable gardens provide a valuable food source for supported charities that are in need of day-to-day fresh provisions. As part of this initiative, training is provided on how to plant seeds, how to look after the vegetables and how to harvest, so that these gardens
can deliver a perpetual food source. As part of its commitment to the charities it supports, the foundation believes in being involved on an ongoing, hands-on basis. The members of the foundation constantly spend time with the charities, engaging with them on their needs, as opposed to simply donating funds.
Support is received from various entities in the form of food, cleaning materials and toiletries, to promote sustainable living. Makro, Dis-chem, Pick n
Pay and Plasticland, all based in Woodmead have assisted with discounts and extra donations throughout the foundation’s operations.
contact details Direct: +27 11 232 8000 Fax: +27 87 944 5452 Find us on Facebook: www.facebook.com/NashuaLTD
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The organisation has also been involved in furthering the education of children it supports through the provision of school essentials, transportation and assistance with school fees. The foundation also partners with Jet, annually, for back-toschool shopping as well as fun clothing shopping sprees which take place in eight provinces. This takes care of the educational needs of children each year, at no
‘Nashua Children’s Charity Foundation provides aBOUT 360 000 meals to as many as 12 000 children per month’ cost to caregivers, buying items such as school uniforms, shoes, stationery and school bags. The Nashua Children’s Charity Foundation not only believes in feeding and clothing children, but it also invests its resources in bettering the living conditions of the children. Therefore, the foundation gears its intervention towards improving the living conditions of these charities through renovations, additions and alterations to the homes of the charities. As facilities are often overcrowded and cannot cater for the number of children requiring assistance, the foundation provides basic amenities such as beds, mattresses, linen, fridges, stoves, small kitchen appliances and cookware. The spirit and generosity of the Nashua Children’s Charity
Foundation is supported by a network of volunteers and sponsors. All funds raised by the foundation go directly towards projects for the various charities,
ensuring that they are supported where they need it most. Over and above the funding the foundation receives from the Nashua group of companies and sponsors, the foundation also has
separate fundraising and collection drives. Nashua’s popular annual golf day is the best-known of these, followed by the annual winter blanket drive, in partnership with the Mini Council of Johannesburg. The children of the supported charities also benefit from social activities such as the open-top bus tour with City Sightseeing, visiting Gold Reef City Theme Park, Sun City Valley of Waves and the Johannesburg Zoo. Thanks to the partnerships the foundation has formed with its sponsors, it also supports the charities in celebrating special events and holidays such as Easter, Mandela Day and Christmas, with celebrity ambassadors including Danny K, Kabelo Mabelane, Miss South Africa, local sportsmen and other well known personalities. Helen Fraser, director of the Nashua Children’s Charity Foundation, believes that as important as it is to feed and clothe children, another important component of their development is play, which is why the foundation places particular emphasis on taking the children out on these kinds of activities. The Nashua Children’s Charity Foundation would like to give special thanks to the following supporters: • Nashua Limited • Nashua Finance • Nashua Mobile • Nashua Communications • Nashua Kopano • Nando’s • Jet Stores and Jet Club • Tsogo Sun • Joburg Zoo • Stuttafords • Hyatt Hotel • Dis-chem Woodmead • Sun International • Makro Woodmead • Pick n Pay Woodmead • Plasticland Woodmead • Mini Council of Johannesburg • Harley Bikers • PR Worx • Nashua Franchises
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thought leadership
Branding for non-profits Decades ago, all it took was a picture of a hungry child or lonely panda to open hearts and wallets. No longer. People today are more media-savvy, street-smart and plain too jaded to hand over money to every cause that asks for their help. In this environment, branding is everything. By Gavin du Venage
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randing non-profit organisations is an idea that has taken off internationally – Amnesty International, Oxfam and the Bill and Melinda Gates Foundation are just a few of the bigname non-profits that employ full-time brand managers. It is a concept that is especially important to South African NGOs, operating as they do in an environment where people are cash-strapped and more sceptical than most when confronted with a rattling tin. Trying to guilt people into coughing up is no longer enough, says Kerryn Krige of the Gordon Institute of Business Science. ‘Remember in the ‘80s how pictures of famine-ravaged Ethiopia were used to raise funds for humanitarian aid? The short-term effect was a flood of money, but the long-term consequences became a marketing nightmare – a negative picture of Africa as a one-country continent that persists today.’ Non-profits need to move beyond the ‘please help’ approach to explore the wider, strategic roles that brands can play: driving broad, long-term social goals, while strengthening internal identity, cohesion and capacity. ‘Savvy non-profits are able to market their work and demonstrate their impact, without gratuitously tugging on the heartstrings of their audience,’ says Krige. ‘They bring their audience in, inform them of their work and involve them with what they do.’ She adds: ‘This is why marketing strategists shy away from cause marketing that’s anchored in guilt. Instead they encourage an approach that builds knowledge of the work of the non-profit and its relevance. This is slower, but more effective in the long term.’ Krige believes that this has become even more critical to an organisation’s survival, given the slowdown in the economy. Research by consultancy Greater Good shows that of the 700 non-profits surveyed, 80% have suffered severe funding cuts, in many cases as much as 50% of their income. The competition is stiff too. South Africa has around 85 000 registered non-profits, according to the Department of Social Development. ‘Each of these is competing for funding. The ones which survive will be those which connect with their audience and build long-term relationships,’ Krige says.
What exactly is a non-profit brand? It is more than the visual identity – the name, logo and graphic design used by an organisation, say Nathalie Kylander and Christopher Stone in a study into non-profit branding published in the Stanford Social Innovation Review. A brand is the picture of the organisation held in the minds of all those aware of the branded product, person, organisation or movement. Brand management is the work of managing these psychological associations. In the business world, marketing professionals talk of creating ‘a total brand experience’. In the non-profit world, executives talk more about their ‘global identity’ and the ‘what and why’ of their organisations. The point in both cases is to take branding far beyond the logo.
The big difficulty non-profits have, of course, is a lack of resources. They can only dream of the large marketing budgets that pump up the image of corporations into the forefront of consumer consciousness. Luckily, non-profits do have an edge. NGOs, particularly humanitarian and advocacy groups, are by far the most popular aid organisations on social media, according to a study by Devex, the international business development organisation. Devex research shows the top 10 development-focused NGOs on Twitter and Facebook have followers in the hundreds of thousands, with Greenpeace topping the list. Social media is, not surprisingly, one of the most important tools for non-profits. ‘NGOs have very small budgets, so it would be silly of them not to be on it,’ says Darren Young, MD of DigitLab in Durban, a media strategy company that assists NGOs in managing their online presence. ‘It’s basically free advertising.’
‘Savvy non-profits are able to market their work and demonstrate their impact, without gratuitously tugging on the heartstrings of their audience. They bring their audience in, inform them of their work and involve them with what they do.’ – Kerryn Krige, Gordon Institute of Business Science
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The biggest corporate donors, he notes, are inundated with requests for assistance. ‘The big social investment budgets are from the Investecs, Anglos, etc. Once a year they pay out funds to NGOs on their list. You really want to be on that list.’
The power of social media For an organisation with limited lobbying and marketing power, social media is a way to get noticed. ‘South Africans are very sceptical, but once they see what you are doing, they become far more willing to support you,’ says Young. ‘Social media gives them a window into your world.’ Most of us will not find the time to visit individual projects and get to see first-hand what they are accomplishing. But a Facebook page, website or blog can provide people with access they ordinarily would not have, observes Young. A regularly updated blog is one way of showing an organisation’s activities. Photographs, quotes and embedded video allow the public to feel they are part of the process. Social media has another impact too: it provides a measure of transparency. Donors have heard too many stories of charities that serve their management rather better than they do the poor. It is not just being on social media that counts. It also comes down to how the brand is managed. ‘Twitter is all about personality,’ says Young. ‘Presentation is everything.’ He notes that following is as important to brand image as having followers. ‘It would not be very good for the image of a rhino foundation to be following a big game hunter. Brands must be selective in who they associate with.’
He adds that GivenGain is an especially successful site for non-profits that allows them to collect funds, but also to provide supporters with constant feedback on how their money is being spent. From a branding perspective, GivenGain allows non-profits and donors – the site cannily calls them ‘activists’– to feel they are part of a collaborative effort. ‘It’s not enough to expect people to feel satisfied by simply donating,’ concludes Young. ‘They have to feel they are part of the process – they are doing, as well as giving.’
Raising your profile Branding is not restricted to the organisation – it can also influence how different activities within the same non-profit are perceived. For instance, LifeLine/Childline is one of the best-known charitable organisations in South Africa. But its Childline brand enjoys a considerably higher profile than its companion service, says CEO Ricki Fransman. ‘The awareness of Childline is very strong,’ says Fransman. ‘Previously LifeLine was also well known, but there has been a drop in awareness, which is something we now want to focus on.’ The charity does carry out public perception surveys from time to time, to gauge how the two services are perceived. Childline is perhaps helped by the fact that it focuses on vulnerable children. LifeLine offers a more general counselling service. It may be down to human nature that children in need provoke a quicker emotional response. Fransman says brand building for the two services depends heavily on radio slots, particularly when timed to coincide with events such as International Women’s Day. ‘We do find we get an increase in calls on both services when we have been on the radio.’ She concedes that image building is not something on which the organisation is focused. ‘Like most NGOs, we are just trying to keep our expenses covered. So branding and marketing are not a priority, even though they maybe should be.’ They do, however, make use of social media, such as MxIt. ‘It helps us to get our message into disadvantaged areas,’ Fransman says. ‘And we depend heavily on word of mouth.’
Resonating with ethical values One of the more successful non-profit brands in South Africa is Beauty Without Cruelty (BWC). The organisation endorses everyday products that are produced without harming animals, a deciding factor for many consumers when making choices. The retailer Woolworths carries a range of toiletry products that are produced free from animal testing and suitable to vegans. BWC’s distinctive logo displayed on products makes it an easily recognisable symbol to consumers who believe they should make an ethical choice when filling their shopping basket. Indeed, the relationship between non-profit brands and business is growing in South Africa. A label that has been seized on with alacrity by commerce is Fairtrade, a mark that indicates products that meet a set of ethical criteria in their manufacture, over and above usual commercial constraints. Two-thirds of the 21 million Fairtrade bottles of wine sold around the world were produced in South Africa, the organisation says on its website. This is impressive when one considers that the wine industry has had to shake off a history of being one of the country’s most exploitative, responsible for iniquities such as the dop system, paying labourers with alcohol, and medieval working conditions. Partly in response to consumer awareness in markets such as Europe, and pressure from local human rights groups as well as
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government, the industry has done a remarkable job of turning itself around. A great many farms now provide workers with profit-share schemes and decent housing. ‘Fairtrade coffee and chocolate are core product categories internationally; unique to the South African market, however, is Fairtrade wine,’ says Boudewijn Goossens of Fairtrade Label South Africa. ‘As the biggest Fairtrade wine-producing country, this translates into additional benefits for farm workers who not only benefit from better working and living conditions, but also from the Fairtrade Development Premium.’ It is clear then that non-profit branding is increasing its role in the
corporate sector too. At the same time, non-profit executives, boards and staff will need to become increasingly confident about managing their brands in distinctive and powerful ways. ‘The problem is, this space is changing rapidly,’ comments Krige. ‘Non-profits are very programme-driven. They want to say: ‘This is our project and these are the 200 orphans we are feeding’. But the public no longer just want to sit and watch from a distance. They want to be included. They want to identify with organisations as they would with commercial brands. This is something the non-profit sector will have to learn.’
Case study
Hospice Some non-profits are a tougher sell than others. Few understand this better than Hospice, an organisation that deals more directly than most with human mortality. Death is a touchy subject, which makes getting the organisation’s message out there difficult. ‘People drive past and say, “That’s the place where you go to die”, and then they quickly move on,’ says Eric Watlington, an advocacy officer at the Hospice Palliative Care Association of South Africa, the overarching body that represents the 160 members around the country. ‘We are much more than that – we offer a lot of services that can help families in a crisis.’ Hospice does assist terminally ill patients, and when it does so, the intention is to afford them dignity and as pain-free an exit from this world as possible. In most cases, this takes place in a patient’s own home, surrounded by family and friends. Often Hospice sends people home in a better state of health than when they arrive. ‘A lot of our patients go back home to live normal lives,’ says Watlington. ‘This is not the last lap. Sometimes it’s the beginning of a new chapter.’ It is this message – that Hospice can provide all manner of support – that the organisation struggles to get out. Unlike many non-profits, Hospice does not have to do it all alone; it has the backing of Cape Town marketing firm Jenny Handley Performance, which guides the organisation’s outreach efforts. ‘I’ve had a long association with Hospice, and five years ago we discussed a national programme; the message was quite simple – quality of life,’ says Jenny Handley. ‘There
The Tapologo Hospice
was zero budget, so we had to find a way to manage without much in the way of resources.’ Much of the focus of Hospice’s branding is on palliative care, an approach to improve patients’ quality of life and assist their families coping with a life-threatening illness. The programme provides the prevention and relief of suffering by means of early identification, assessment and treatment of pain and other problems, physical, psychosocial and spiritual. Families are also part of the process. ‘Hospices are not there only to care for the dying,’ says Handley. ‘Often, patients are brought to our facilities simply to give their families a break. Caring for a sick person can be emotionally and physically draining. We can offer them a respite that allows them to gather their strength, so that when the patient returns home, their families are better able to cope.’ This is a lot to convey to the public on a limited budget. The approach then was to create a campaign based around ‘brand ambassadors’ – celebrities whose profile would assist in promoting the Hospice message. Footballers Lucas Radebe and Bongani Khumalo signed on, as did cricketer Jacques Kallis. All three had suffered losses to cancer – in Radebe’s case, he had lost his
wife and his mother, both of whom were cared for by Hospice. Khumalo and Kallis had also approached Hospice to assist with terminally ill loved ones. Khumalo, who played for Tottenham Hotspur and scored South Africa’s opening goal for Bafana Bafana during the 2010 World Cup, lost his mother in 2009. ‘Khumalo tells the story of the goal he scored,’ says Handley, ‘that the day he scored against France was exactly one year since his mother died. He told us, ‘I scored the goal for her”’’ Having such recognisable figures has helped to raise Hospice’s profile, as well as awareness that it pursues palliative medicine, not just care of the terminally ill. At the same time, the campaign has depended on media support. ‘Our ads are aired free of charge and that helps a lot,’ says Handley. The agency has managed to secure up to R10 million in advertising space in national newspapers, radio and television. The campaign is beginning to show results. A 2010 benchmark study showed that awareness was low, especially among the youth, and in the black community particularly, Handley says. However, a more recent study placed Hospice among the top five NGOs in terms of public recognition and awareness. She adds that perception management surveys are carried out every three years to gauge the efficacy of the campaign. Still, it remains a challenge to get people to pay attention. ‘It is very difficult to communicate a message when they don’t want to hear it,’ Handley comments. ‘We need to get across that we provide quality care that is mostly free. This is not just a place to die.’
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Empowering future generations and instilling a culture of giving In its commitment to supporting individuals, communities, businesses and the economy, Barclays Africa’ citizenship agenda is focused on the way we do business, contribute to growth and support our communities.
partners with not-for-profit organisations to implement enterprise, employability and financial literacy skills development programmes, to support young people towards economic independence and security. Among other entrepreneurship initiatives, Barclays Africa supports the South African Institute of Entrepreneurship (SAIE)’s Techno Enterprise Initiative. Through this initiative, young entrepreneurs are trained and mentored to run computer centres in the North West, Free State, Northern Cape and KwaZulu-Natal. Motsieloa Malete and Kali Lebogang started running their computer centre in February 2013 – one of 24 established with Barclays Africa’s support. Colleagues reach out to young people like these, to share their time and skills and help them develop their entrepreneurial ideas. Visit www.absa.co.za for more information.
Barclays’ community investment programme is aimed at empowering young people between the ages of 10 and 35 with the necessary skills to fulfil their potential. To do this, Barclays Africa is investing not only in money but also in the time and skills that employees commit to enhance the enterprise, employability and financial literacy skills of the next generation. These are skills that help young people overcome the social and financial challenges they face, to better provide for themselves, their families and ultimately support long-term economic growth. Young entrepreneurs in South Africa make up 20% of all employers and 32% of the self-employed (Absa SME Index). Barclays Africa
Absa Bank Ltd Reg No 1986/004794/06 Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7 Company Information: absa.co.za
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thought leadership
It begins with us Much of a country’s success depends on the involvement of businesses in their communities. Because of the economic power big corporations hold, they are in a position to make a real difference when it comes to the many challenges our country faces. Simply by living and working in South Africa, we should feel ethically compelled to support the historically disadvantaged. This is both a duty and a privilege. By Ronnie Khoza, Head of RSA Offices, Aurecon
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ocial investment is not just government’s responsibility. As President Jacob Zuma so aptly stated in his February 2012 State of the Nation address, ‘Government alone cannot solve the challenges faced by the country, but working together, solutions are possible.’ Laying all responsibility in the hands of the government is taking the easy way out. Getting involved oneself demonstrates the active, handson concern that is vital to addressing social wrongs and empowering people. This is essential in a democracy as young as South Africa’s. If the resources of a company are not at least partially used to create sustainable solutions to the socio-economic concerns of their communities, we are doing our country, our potential clients and ultimately ourselves a disservice. Businesses should realise that when they commit to becoming part of the social dialogue between government and themselves, they commit to building the nation block by block. And addressing historical inequalities is, without a doubt, a worthy challenge. There is no lack of NGOs with good causes out there, and it is not difficult for businesses to find CSI initiatives that allow the business to align its social investment with its company values. Doing so strategically reinforces your commitment to your own core values and enables CSI to be so much more than simply charity. Instead, it becomes a genuine partnership between the business and the beneficiaries. Such a joint venture, like investing in education, may be long-term, but it encourages development that is sustainable and meaningful for both parties involved. For social investment to work, employees in the company should truly invest – actively participate in the process and progress of the project. It is so easy for CSI initiatives to turn into window-dressing, where money is simply spent ‘for the show’ and staff are not actively involved. An
initiative that staff and managers truly believe in is one they will devote time and energy to, and gain a sense of fulfilment from. In this way, CSI becomes a drive from which we can all benefit. In other words, it is not just financial support, but also time, commitment, passion and sustainability that make CSI work. The potential to bring about real change together, as a body of businesses, and knowing that our joint efforts affect the lives of people in our country in a tangible, uplifting way, should drive all of our efforts. As corporates and as individuals, we vastly underestimate the power we have to transform our communities. I think now, especially, as South Africa attempts to distinguish itself as a developing country, strategic CSI initiatives are becoming crucial in the corporate environment. It begins and ends with us.
Key tips to making CSI work CSI should be made a key part of business strategy. It should be aligned with company values, and practical measures should be taken to incorporate CSI initiatives into each venture undertaken, where possible. As mentioned before, ensuring that employees take ownership of the initiative by involving them in the process is vital. It is also a good idea for management to appoint a Broad-based BEE compliance and CSI programme coordinator, who would be specifically tasked with ensuring that efforts in this area are ongoing, targeted and cohesive. Having dedicated personnel reminds us that CSI is not merely an addition, but a priority.
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Investing in maths, science and technology are key to closing the skills gap in our country and it is crucial that we engage and inspire our future leaders. Sasol is firmly committed to investing in this arena on a national level, these change reactions contribute significantly towards enhancing education, while expanding the pool of talent available in the industry.
committed to
advancing sustainable development Building a bridge to maths and science The shortage of trained maths and science teachers has severely impacted the delivery of quality education in South Africa, with rural schools the most affected. Maths, science, engineering and technology are integral not only to Sasol’s core business but to the growth of our economy. Sasol has responded to the daunting challenge of educator development and curriculum support by empowering and training new and existing math and science teachers through the Osizweni Education Centre.
Educator Development Teachers in service Sasol has been empowering practicing teachers in Mpumalanga since 2009 through non-formal and formal programmes that have resulted in a number of teachers graduating with ACE and B Ed (Hons) qualifications in maths, science and technology from UNISA, the North West University (Potchefstroom), the University of Johannesburg and the University of the Witwatersrand.
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The Fellowship Programme strives to address the acute shortage of maths and science teachers by recruiting youth from disadvantaged communities and enrolling them towards BSc degrees with UNISA, followed by a post-graduate diploma in education. This unique programme combines formal and non-formal study with apprenticeships. Students receive full academic support and mentorship from experienced Osizweni staff, as well as valuable teaching experience. Once they have completed the programme, students are eligible to teach at public schools in Mpumalanga. More than 40 unemployed youth have been trained as maths and science teachers so far and are making a difference in rural schools.
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Developing
artisan skills in Sasolburg
The Ministry of Higher Education and Training declared 2013 the “Year of the Artisan”.
Techno X The future is rooted in technology and science and each year Sasol Techno X serves to expose young enthusiasts to the practical application and endless possibilities of mathematics, science and technology. The displays, workshops, talks and hands-on activities draw an average of 27 000 learners, inspiring and informing them about career opportunities in the petrochemical industry. Learners engage with industry, academic institutions, business organisations and various Sasol businesses, while industry stakeholders are able to speak to learners about the practicalities of courses and bursary options. Sasol’s investment in communities is focused on improving the culture of education, educational facilities and, specifically on strengthening the continuum of education from early childhood development to tertiary education entrance.
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Figures released by the Department of Higher Education earlier this year revealed that South Africa has a substantial shortage of artisans. Sasol, in partnership with construction companies, Kentz and Aveng Grinaker-LTA, is now investing R1,5 million to train 25 members of the Zamdela community in Sasolburg as fully-fledged artisans over the next three years. The project will contribute significantly towards long-term skills development in Sasolburg and supports the development of skills and capacity building in the communities in which we operate. This is key to both sustainable business and sustainable communities. Candidates will be selected from the Department of Labour database and the final admission of delegates will be conducted by relevant training centres. Kentz will train boilermakers and pipe fitters as a dual trade, while Aveng Grinaker-LTA will train doublecoded welders. On completion of the three-year apprenticeship, artisans will receive a MERSETA (Metal and Engineering Sectorial Education and Training Authority) qualification. Industrial experience will also be obtained before writing their trade certificate examinations.
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committed to advancing sustainable development
continued
Over the last few years the energy poverty divide has plagued South Africa and, in partnership with the Ministry of Energy (DOE), Sasol has assisted in setting up and rolling out Integrated Energy Centres (IeCs) in rural areas. The nationwide project is driven by the need to promote and provide access to energy in rural areas, and to make energy more accessible and affordable to poor communities. Sasol Oil has partnered with the DOE, District and Local Government, non-governmental organisations (NGOs), area chiefs and community representatives to launching the IeCs.
Bridging the energy poverty divide
Sasol has contributed to establishing seven IeCs in government identified poverty nodes in Caba Mdeni in the Eastern Cape, Laxey in the Northern Cape, Mutale in Limpopo, Makgobistad in the North-West Province, Qunu in the Eastern Cape, Ulundi in KwaZulu-Natal and the Mmakwane IeC in the Free State. Plans are also underway for an eighth centre in Mpumalanga. As part of its investment, Sasol facilitated the feasibility study and Environmental Impact Assessment (EIA) prior to embarking on the construction phase. “The main objective of the IeCs is to bring affordable and sustainable energy services and information closer to poor communities. The project has also helped to alleviate poverty, create jobs and build capacity in surrounding areas,” said Maurice Radebe, Sasol executive director. The IeCs are centrally located to accommodate surrounding villages and currently provide petrol, diesel and liquid petroleum
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gas (LPG). Other services include an information centre, library, computer room with internet services, ATMs, a convenience store, electricity dispensing services, mobile telephone services and pay-out points. “Currently each IeC is run and managed by a registered community co-operative with a board of directors. IeCs operate as both wholesale and distributor, cutting out the middle man and saving money for the community. Part of the construction process is to co-ordinate the activities of various stakeholders, ranging from the community to engineers. “It is vital that the communities derive the benefits of the IeCs and, with this in mind, we have attempted to create as many jobs as possible, with an emphasis on women and youth. We are extremely proud of this initiative,” says Maurice Radebe. “Approximately 50 – 80 temporary jobs were created at each site during construction and 15 permanent jobs were created once the IeCs became operational,” concluded Radebe.
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Sasol gives back to local communities Research indicates that companies are more likely to attract and retain talent and create an engaged workforce when employees bring their ‘whole selves’ to work. It also improves relationhips with key stakeholders, strengthens a company’s social licence to do business and fosters cohesion. All these factors have a direct impact on the profitability and sustainability of an organisation. “Being a successful company is not just about making profits, it’s also about what and how you give back to the local community,” says Maurice Radebe, Sasol executive director. While Sasol is a pioneer in technological development it is also taking the lead in initiating programmes that change the world in which it operates. This cannot be achieved alone. Sasol launched its Change Reaction Programme in 2004 with the inception of the “Give as You Earn” programme, which allows Sasol employees to donate money to the charity of their choice every month. The company matches each donation made. In addition, Sasol volunteers use their specialist skills to help communities. “Sasol is proud of its people. By working together we have been able to create what we call change reactions, the things both big and small which impact on our ability to make a difference. We will continue to make these differences and to create opportunities for our people to be actively involved in doing so,” says Radebe.
The Recycle Swop Shop In March this year, Sasol Junior Engineers launched a Recycle Swop Shop. This empowerment initiative seeks to uplift disadvantaged communities, with a focus on children. The Swop Shop targets primary and secondary school pupils. It challenges them to talk to their neighbours and families about recycling and to thus make a difference to their communities and environment. Children are encouraged to recycle various materials in exchange for credit which can be redeemed at a shop. “Sasol registers their names on a data base and the children then earn points which they can use to buy goods at a swop shop,” says Gerhard Marais, one of the organisers. “We are essentially teaching them the value of money, as well as saving skills,” says Marais. “It is not just a hand out, the children must do their part before they can buy anything,” he adds. The swop shop is operated by the project and provides basic items such as toiletries, school supplies, clothes, blankets and basic food items, as well as toys and sporting goods. Sasol staff help the children to divide the different types of waste and wash it before weighing it. Sasol plans to collect recyclable waste monthly. The project is overseen by the members of the Junior Engineering Forum who are able to give back to their own community. The project is an educational tool that encourages the youth to take responsibility for their own future; it is a critical mind-set to instil. Previous projects of this nature have found that the swop shop becomes a central part of the weekly rhythm of the community, providing a stepping stone to further community projects.
Other initiatives Throughout the year Sasol promotes various volunteering events such as Mandela Day, the CANSA Shave-a-thon, and the annual Toy Drive in December and encourages employee participation. When disaster strikes, Sasol encourages employees to make a financial contribution.
At Sasol, we recognise that social responsibility and sustainable development is integral to achieving our long-term strategic objectives as a company. We are committed to partnering with stakeholders to find lasting solutions to the sustainable development challenges facing this country. While we appreciate that we will not solve these challenges overnight, we continue to embed sustainable development principles in every aspect of our business with the knowledge that we are making a difference in the long-term.
For more detailed information on Sasol’s CSR initiatives | visit www.sasol.com
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Enterprise & social development
Building an entrepreneurial spirit ways of being, ways of seeing
Entrepreneurship is an overused and often-misunderstood term. It is falsely believed to be a set of finite skills and a single lofty achievement, rather than a continuous journey of development, growth and experience. By Dr Jonathan Marks, senior lecturer at the Gordon Institute of Business Science
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he word ‘entrepreneurship’ has entered the modern business and social lexicon like few others terms. Hardly a day goes by without a programme of entrepreneurship development being announced, a competition for ‘entrepreneur of the year’, or the celebration of a successful entrepreneur who has launched or listed a great business. I argue that, like other terms that get overused, ‘entrepreneurship’ runs the risk of being not only rendered meaningless, but worse – wholly misunderstood. One could be led to believe that successful entrepreneurship is only manifested in the creation of a successful venture – in essence, the achievement of a single goal. I suggest that not only is entrepreneurship misunderstood and misapplied, but misconstrued into a set of finite skills and a single lofty achievement, rather than a continuous journey of development, growth and experience. Moreover, the limited popular use and definition of the term does not easily flow to other business forms, such a social and non-profit ventures.
A broad spectrum of ventures The growth in interest in entrepreneurship is matched by the proliferation of entrepreneurial activities. What was largely the domain of business, and small business in particular, has now become a broad church that includes corporate innovation and entrepreneurship, start-up enterprises, family business, lifestyle businesses, government programmes and initiatives, social entrepreneurship, non-profit formation and management, and youth employment and job creation. Most universities and business schools around the world offer programmes for entrepreneurs. These range from short executive courses to multi-year MBA programmes. Added to this is a large number of small and medium enterprise development programmes. These educational and development programmes cross an even wider spectrum, with some programmes focusing on skills development and acquisition, others on developing the attitude and mindset for entrepreneurship, and specialised programmes that help entrepreneurs to focus on the ideation and start-up phase of a new venture. Specialist programmes related to social innovation and social-value creation, social entrepreneurship and non-profit management are likewise becoming more common, both here in South Africa and around the world. What most of these programmes and initiatives have in common, apart from a link to entrepreneurship, is that they regard entrepreneurship as a discrete set of skills, competencies or activities.
This mode of thinking is predicated on the view that entrepreneurship is a codified set of actions that can be taught, in much the same way as one might teach music or accounting or driving a car. This kind of thinking contributes to the limited and, at times, incorrect application of entrepreneurship. The South African school curriculum, for example, deals with entrepreneurship through the subject Economics and Management Studies, effectively limiting its application to the world of business. The numerous market days that are held at schools as part of this learning mode are sad testimony to the relegation of a rich and diverse discipline area to simple trading. It’s no wonder that South Africa shows such consistently low rates of entrepreneurial activity. While I am no fan of Life Orientation as a school subject, locating entrepreneurship within this subject discipline would do more to position the discipline away from its current rationalistic application.
To begin something Entrepreneurship is derived from the French entreprendre, which means, ‘to begin something or undertake’. This seems to fit the contemporary day-to-day practice of entrepreneurship – starting and running a business. However, the definition fails to fully capture the essence of being entrepreneurial. The word’s French etymology may be a nod towards early theorists, such as Jean-Baptiste Say and Richard Cantillon (an Irish-French economist), who began to explore this domain of commercial activity at an interesting time in global history. The late 18th century saw growing industrialisation, urbanisation and a confluence of politics, economics and social awareness. Say and Cantillon may well have given birth to the notion of entrepreneurial economics, a broad cluster of thoughts that spans from Max Weber’s work, which argues for a connection between ethics, religion and entrepreneurship, to current contemporary humanistic models of entrepreneurship. Weber’s view was challenged by Marx, and later by Samuelson, who considered only factors of production and the economic system. McClelland, a behavioural scientist, approached entrepreneurship from a standpoint of personality theory, arguing that entrepreneurs showed a different ‘need for achievement’ when compared to the rest of the population. This school of thought – largely obsessed with defining characteristics and traits that can be associated with successful entrepreneurs – gave way, although not entirely, to the work of iconic theorists such as Schumpeter and Knight.
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Gerald Olitzki’s revamp of Ghandi Square in the Johannesburg CBD.
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ENTERPRISE & SOCIAL DEVELOPMENT
‘Entrepreneurs are consummate storytellers who are able to conjure up a vision of a better world brought about by their venture.’
These economists viewed entrepreneurship through the lens of an economic system; Knight introduced the concept of risk and uncertainty, and Schumpeter built his theory on the base of innovation. This link with innovation persists today, popularised by management guru Peter Drucker. His views and comments on entrepreneurship also heralded a managerial view of entrepreneurship, one that fitted neatly into prevailing managerial practice that sought to apply resources to areas of greatest return. This view was captured by Harvard’s Howard Stevenson, who defined entrepreneurship as the ‘pursuit of opportunity beyond resources controlled’.
CONJURING UP A BETTER WORLD Drucker’s view that innovation was a discipline and, like all disciplines, it can be learned and practised, is, I believe, the source of our current model for entrepreneurship development through skills acquisition. A more humanistic and expansive view of entrepreneurship is put forward today, although not always a view that appears to draw support. To my mind, the view of Harvard’s Tom Eisenmann is worth considering. He suggests that entrepreneurs face a Catch-22 between risk and resources. Entrepreneurs find it hard to attract resources when risk is prevalent, and it’s hard to reduce risk without resources. The ‘lean start-up’ movement is one way in which entrepreneurs manage this Catch-22. Lean thinking supports a bootstrap model in which risk is quickly resolved through the development of a minimum viable product. This approach is coupled with a focus on partnering and staged investment. Entrepreneurs, according to Eisenmann, are consummate storytellers who are able to ‘conjure up a vision of a better world brought about by their venture’. Eisenmann’s view builds on the thinking of Saras Sarasvarthy, who has proposed two modes of entrepreneurship: effectual and causal. Causal thinking is predicated on a defined set of resources and defined outcomes, whereas effectual thinking supposes an undefined set of resources and a multitude of possible outcomes. It is through this thinking lens that I believe entrepreneurship’s future lies.
WELCOMING FAILURE Entrepreneurship is considered an integral and powerful element of economic growth and development. The most widely quoted study on entrepreneurship, the Global Entrepreneurship Monitor (GEM), is surveyed in 69 countries to build a standardised benchmark of entrepreneurial activity around the globe. What is most interesting is that a number of the key overall findings of the 2012 report are largely outside the domain of skills acquisition as the mechanism to build greater entrepreneurial performance. To be fair, education is a consistent call within the GEM report, as a tool to increase entrepreneurial activity. However, the report lists a number of other ‘softer’ factors that need to be considered when initiating programmes and interventions of entrepreneurial development. Unsurprising was the role of a positive societal attitude towards entrepreneurship as the starting point for successful entrepreneurial activity. An element of this attitude is the perception of opportunity, and personal capabilities to exploit that opportunity. Sub-Saharan Africa scores higher on this measure than European or Latin American countries. Israel is a powerful example of how to create a positive culture of entrepreneurship at a societal level, and I discuss this particular case below. Another element of attitude was found to be a fear of failure (again, no surprise), in which African nations scored higher when compared to the rest of the world. Failure, or rather the
tolerance of failure, is a hallmark of the highgrowth entrepreneur. At a talk in 2011 at Xerox’s Palo Alto Research Centre in California, entrepreneur and academic Vivek Wadhwa relates a story of moving to Silicon Valley from North Carolina, and finding himself hearing more about entrepreneurial failure than success. He suggests this culture is unique to the US West Coast, and is born from the tradition of scientific discovery and experimentation. Wadhwa argues that no scientist expects to get an experiment right the first time, so failure is an inevitable and even welcome event on the path to success. This speaks to issues of entrepreneurial culture and an environment within which entrepreneurial ventures operate.
A THINKING DISCIPLINE The 2013 EY G20 Entrepreneurial Barometer raises this issue in relation to South Africa. South Africans live in a world of extremes, suggests the report: starting a business is easy, but the regulatory framework, labour conditions and access to finance create challenges for new businesses. Of greatest concern for South Africa is our lack of innovation. Across two metrics – research and development spend, and publication of scientific and technical journal articles – South Africa scores well below the G20 average. Given the long lead times for scientific innovations to reach commercialisation, this is a worrying picture. Respondents to the EY study cited government intervention through education, access to finance and general profile-raising of entrepreneurship as the most important factors to positively influence our entrepreneurial culture. Against this backdrop, I will use three examples to illustrate that entrepreneurship is a thinking discipline and a cultural phenomenon, not beyond the reach of South Africa, and that projects and initiatives already exist in our country that blend together traditional (profit-driven) entrepreneurship alongside social ventures and corporate social investment. CASE STUDY 1: ISRAEL The first example describes entrepreneurship at the level of country culture. One of the finest examples of this today is Israel. In the book Start-Up Nation, Dan Senior and Saul Singer examine how Israel’s economic miracle has emerged from a country only 65 years old, with a population of almost eight million people. Israel has no natural resources, is almost constantly at war, and yet produces more start-up companies than China, Japan, Korea and the United Kingdom. The two factors that the authors cite as being central to Israel’s entrepreneurial vibrancy are immigration and compulsory military service. The authors suggest that Israel’s large immigrant population is, by nature, risk-taking; they are already a nation of entrepreneurs. Immigrants are not opposed to starting from scratch, and usually contribute more to social and economic life than they demand through welfare of social services. Military service, at least within Israel, provides a network, the acquisition of a wide range of skills and experience in a non-hierarchical environment where creative thinking and innovation are highly valued. While the government provides support for entrepreneurs, much of the support and impetus for entrepreneurship emerges from the ground up. Israel exemplifies a consistent culture of entrepreneurship through its ‘can do’ attitude – in essence, a way of being that is, by its nature, profoundly entrepreneurial. CASE STUDY 2: JOBURG’S CBD In the second example, I wish to describe how entrepreneurship can > to page 33 occur at the level of a city or precinct. The resurgence of
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Advertorial
EMPOWERING MOTHERS
The Clothing Bank - supported by the Old Mutual Foundation enables community development in South Africa
D
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The Clothing Bank has, in the last three years, helped and trained more than 270 women to start small retail clothing businesses, collectively earning the mothers in excess of R8.5 million in profit over the same period. About the Old Mutual Foundation The Old Mutual Foundation has funded The Clothing Bank in a way that has enabled the establishment of an additional two branches: one in the Boland last year, and one in Johannesburg this year. Both serve communities where many
corporate social investment initiatives since 1965. The Old Mutual Foundation, which was formerly established in 1999, continues to contribute to South Africa’s socio-economic development by focusing on providing investment and support through its involvement in enterprise development, skills capacity building, education and staff volunteerism. As a good corporate citizen, the Old Mutual Foundation does its work passionately in alignment with the government’s national priorities. Old Mutual believes in Doing Great Things and aims to inspire others to do the same.
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Things didn’t get easier for her when, at the age of 13, she moved to Cape Town to live with her parents. Health problems caused her to drop out of school, and when she attempted to write her matric as a young adult, she wasn’t successful. But in 2012 all that changed. ‘The Lord answered my prayers,’ says Dieketso of the day she walked into The Clothing Bank. Through her association with the organisation’s two-year holistic training programme, she has learned essential bookkeeping and computer skills, is doing a business skills course, and is taking advantage of the ongoing mentorship offered by the programme. She has also been given guidance in parenting and personal health. The Clothing Bank is an organisation that empowers unemployed mothers through enterprise development so that
they can become socially and financially independent. The organisation collects excess clothing and merchandise from major retailers around the country. Not only are these goods Old donated to non-profit organisations for re-sale, they are also used as a tool to teach business skills. Their motto is ‘Our programme changes lives, one garment at a time’. The Clothing Bank is a beneficiary of the Old Mutual Foundation, which funds innovative programmes that integrate marginalised communities into the mainstream economy and inspire long-term change. The foundation focuses on job creation, poverty alleviation and education in rural and peri-urban communities, where the need for support and assistance is greatest. Founded in 2010 by Tracey Chambers and Tracey Gilmore,
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Investment with a Purpose The Edcon Group believes it has a responsibility towards the development and upliftment of communities within which it operates, In pursuit of its business objectives, the group has committed itself to contributing towards making a sustainable difference. Corporate Social Investment is an integral part of Edcon’s transformation strategy and as a caring organisation; the group is committed to making an impact in the lives of individuals, families and society at large. The Edcon Corporate Social Investment’s aim is to share wealth generated by the company for positive change, by improving safety and the quality of life of our people in the areas we trade in primarily through support for education, disability and safety initiatives.
1. Education
2. Public Safety & Public Security
We believe that education supports the future prosperity of the country. As such, the Group actively supports education through its ‘Adopt-a School’ initiative. The initiative is a whole-school improvement approach that seeks to develop schools into models of excellence through improved teacher and learner performance, improved school environments, as well as developing pathways for youth skills development. Adopted schools include Hlakaniphani Junior Primary School, Lilydale Primary School and the Kliptown Youth Project, all based in Soweto, Johannesburg..
3. Disability
Edcon is the principal sponsor of the annual National Casual Day, a flagship fundraising initiative of the National Council for Persons with Physical Disabilities in South Africa (NCPPDSA), which is held 2.1. Edcon-SAPS Trailer Project every year on the first Friday of 24 Mobile trailers were donated to the SAPS and these have been September. Casual Day aims deployed at various police stations throughout the country. The trailers to raise awareness, improve are used for visible policing at crime hot spots, major entertainment education, encourage inclusivity nodes, busy city centres, sporting events and crime awareness. and accessibility and engender social integration for persons with 2.2. Adopt-a-Station disabilities. Beneficiaries of Casual ‘Adopt-a-Station’ is another successful intervention where Edcon upgrades and refurbishes Victim Empowerment Centres at adopted Day also include SA Federation police stations. To provide a safe transitional centre and meet the needs of Mental Health, SA National of victims of crime, Edcon has upgraded the Victim Empowerment Centre Council for the Blind, Disabled at Johannesburg Central Police Station, one of the country’s largest People SA, the Deaf Federation of police stations. SA, and Epilepsy SA. Public safety focuses on establishing sustainable partnerships with government and other companies in crime prevention through the support of visible policing and crime awareness initiatives. Edcon has partnered with the South African Police Service’s (SAPS) Visible Policing Division through three initiatives:
2.3. SAPS National and Provincial Awards
Edcon supports the annual Johannesburg Central SAPS Cluster and Gauteng SAPS Cluster Prestige Awards held annually to recognise police bravery, achievements and excellence.
4. Employee Volunteerism: ‘I Choose to Give’ Programme Employee volunteerism is fundamental to our Corporate Social Investment strategy. ‘I Choose to Give’ – our employee volunteer programme – encourages social consciousness and a culture of giving and volunteerism among our employees. Employees are encouraged to volunteer their time, expertise and to donate resources in support of community organisations.
www.edcon.co.za
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ENTERPRISE & SOCIAL DEVELOPMENT
‘Being entrepreneurial is only about how you see the world and how you act in the world.’ investment and economic activity in Johannesburg’s inner city is such an example. While a number of entrepreneurs have been attracted to the opportunity in the inner city, Gerald Olitzki has taken this kind of thinking to a much grander scale. Olitzki’s vision for the city began with an ambitious plan to revamp the bus terminus. It took 10 years of lobbying, but finally Gandhi Square was launched. This has caused smaller businesses to return to the area and economic activity to once again flourish. While Olitzki is a property investor and developer – an entrepreneur in his own right – his work on Ghandi Square was achieved through partnership with the Johannesburg Development Agency and Central Ghandi Square. Johannesburg Partnership. This describes a style of entrepreneurship that is collaborative, inclusive and socially minded. Olitzki’s vision is not just to make a profit, but to create profitable spaces for people to be proud of, and to use and enjoy. The work being done and led by Olitzki in Johannesburg’s inner city is an example of a way of seeing; he illustrates that being committed to a vision is worth far more than talking about its possible success.
from page 30 >
CASE STUDY 3: MINDSET NETWORK A final example is that of a non-profit organisation that illustrates how clever corporate social investment can lead to big rewards. It’s an example of how a number of large companies got together to find a solution to one of South Africa’s most pressing problems: education. Mindset Network is an NGO formed through joint CSI from Liberty, Standard Bank, the Nelson Mandela Foundation, MultiChoice, Sentech and other technology companies involved in satellite television broadcasting. Mindset Network is unique in many respects, mostly as it was formed through the direct action of these firms, rather than merely through their donations or sponsorship. The initiative also makes use of each firm’s unique capabilities and provides a service into an area that is desperately in need of support. Mindset’s work is integrated around different media, including print, to supply lesson plans and study materials. This model has been extended to the health sector through the provision of health information and messages to state clinics and hospitals. Mindset Network exemplifies both ways of seeing and ways of being. Liberty and Standard Bank recognise that our country will not grow and develop without a robust education system. They rightfully selected Science and Mathematics as their area of focus, and brought on board the skills and partnerships to bring the project to market. This vision was matched by the actions of the partners – the ways of being. Technology has long been the vanguard of entrepreneurship, and seeing the investment from MultiChoice, Sentech and other technology firms should act as an example of how to conduct corporate social investment.
NOT A SET OF SKILLS, BUT A DISCIPLINE I began this article by challenging the manner in which the word ‘entrepreneurship’ is applied. My contention is that it has broad and wide appeal, but has largely been relegated to a set of business skills, mostly focused on small enterprises. I argue that entrepreneurship should be viewed not as a set of skills, but as a discipline, and as with most disciplines, it should be grounded in thought and action.
The three case studies illustrate how an approach to being entrepreneurial leads to unusual results. Israel had no reason to succeed; the almost national obsession with entrepreneurship has created and sustained a culture that has built the country into a high-tech powerhouse. Israel exemplifies an entrepreneurial way of being; its culture pervades all aspects of social and economic life. The example of rebirth in the inner city of Johannesburg illustrates a different kind of entrepreneurship. Gerald Olitzki shows each day that a large-scale vision benefits a far greater constituency. Olitzki’s approach has been to be inclusive and participatory, and to know that the benefit from his property investment and development extends far beyond financial profit. Olitzki’s ways of seeing are entrepreneurial to the core. The final case study of Mindset Network shows how corporate social investment, cleverly applied, can make a profound difference to an area of greater social need. The partners to Mindset Network show how seeing and being entrepreneurial is possible within the confines of corporate social investment. Our challenge as a nation is to embrace entrepreneurship in all of its manifestations. To do this, we need to better understand what it means to see our world through the eyes of an entrepreneur, and to be entrepreneurial in all that we do. I don’t doubt for a minute that entrepreneurship will continue to be applied to the development and growth of small and medium enterprises, and I don’t suggest that this should end; I only argue that this view is too limited for our purposes. We need a nation of entrepreneurs – everyone needs to take this up. And it’s possible when you accept that being entrepreneurial is only about how you see the world and how you act in the world. By all means, build your skills and capabilities, but don’t imagine that the domain of the entrepreneur is only for those with a passion for business. It should and does apply in a far more inclusive manner. The growth in social entrepreneurship and social innovation is one manifestation of this inclusivity. Many of these ventures are supported through corporate social investment, and it is well within the remit of CSI officers to insist on seeing entrepreneurship thrive within these ventures through a way of thinking, and not just a way of acting. Entrepreneurship is a complex, dynamic and multi-faceted phenomenon, and its inculcation into our society in a pervasive and inclusive manner won’t happen when it is applied too narrowly. The work of all entrepreneurs is to ensure that this discipline receives the status and attention that it deserves.
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ENTERPRISE & SOCIAL DEVELOPMENT
MAKING SENSE OF SOCIAL ENGAGEMENT As the social entrepreneurship movement gains momentum in South Africa, the once clear distinction between profit and not-for-profit companies has become increasingly blurred. By Lesley Donna Williams, founder and MD of Impact Hub Johannesburg 34 | CORPORATE SOCIAL INVESTMENT
Shonaquip provides community-based wheelchair assessments, fittings and training services.
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hile there are several definitions for social enterprise, essentially these are businesses that aim to have a social or environmental impact, and apply business practices in creating financial sustainability, in order to reinvest in the mission of the business. The business of social entrepreneurship is therefore not about creating shareholder value, but rather blended value, as it lies at the intersection of creating social benefit and financial return on investment. We have seen an increase in tertiary education offerings for social entrepreneurship, most notably the Gordon Institute of Business Science’s Certificate Programme in Social Entrepreneurship, the University of Johannesburg’s Centre for Social Entrepreneurship and Social Economy, and the UCT Graduate School of Business’s Bertha Centre for Social Innovation and Entrepreneurship. This is clear acknowledgement of a sector of society that is not only gaining traction, but will form part of the mainstream economy and create a new norm of doing business.
NOT A REBRANDING EXERCISE This sector should not be viewed as a rebrand of the NGO sector. Social enterprises generate profit through their core business operation, while a traditional NGO not using market instruments is dependent on donor funding and may have an income-generating activity to supplement income, but its core work does not have beneficiaries who can always pay for the service. In an ideal world, the state would take care of the poor, aged, sick and disabled, but the reality is that in South Africa, the NGO sector provides vital services to reach the marginalised in society. Social entrepreneurs often use innovative solutions, and cross-subsidise their activity to achieve their mission. They have a clear value proposition and go to market, creating earned income. Donor funding is therefore not a key characteristic that determines longevity. South Africa has a wealth of examples, such as ShonaQuip, a company committed to improving the quality of life of people with severe disabilities. It provides community-based wheelchair assessments, fittings and training services that have helped over 70 000 children in the past 20 years. According to the founder, Shona McDonald, there are 70 million people around the world who need an appropriate, well-fitted, affordable wheelchair. Of these, 80% live in emerging or under-resourced countries and need to be served. Although Maxima Energy Holdings is still in the early stages of operation, it has developed a business model that provides a cheaper and cleaner alternative to synthetic fuel, creates jobs and contributes to sustainable development of rural low-income markets. The production is environmentally sound because waste vegetable oil from hotels and
restaurants is used as the main source for the biofuel. In exchange for the used vegetable oil, Maxima delivers biodiesel. In addition, synthetic fuel companies are obliged to deliver 5% of their total production as biofuel. Another example is the Hillbrow Entrepreneurship Initiative (HEI), founded by Barbara Copelovici and students from the University of the Witwatersrand and the University of Johannesburg. The purpose of HEI is to create employment opportunities and strengthen entrepreneurial ventures of the homeless and refugees of Hillbrow. This year it has created HEI Café, the first social coffee shop in Africa. According to Copelovici, HEI Café, based in Braamfontein, allows the organisation to self-sustain, by providing quality French delicacies served by its beneficiaries.
AN OPPORTUNITY FOR BIG BUSINESS The emergence of social enterprise also creates an opportunity for big business. While just about all mission statements speak to the good of society and positive values, there is rarely an understanding throughout the organisation of how this gets applied in daily operation. A further reality is the increasing pressure to move towards the development of low carbon-emitting products. To achieve compliance, big business also needs to contribute an obligatory amount to enterprise development and corporate social investment. There is no more apt response than to partner with social enterprises in a considered way, to achieve a common objective. Maxima Holdings, for example, can supply synthetic fuel companies with biofuel, in order to comply with regulations, while achieving its objective. This point of intersection allows big business to move towards a more sustainable and inclusive economy. While big business maintains its profit motive, as shareholder value dictates, sustainability reporting moves beyond compliance through an increase in quality. The benefit of the relationship for the social enterprise is gaining the mechanisms to scale its innovation with a social motive. However, it does not measure its success by profit, but by social impact. The level of earned income working with big business allows the social enterprise to serve its beneficiaries at a reduced cost or a scaling payment system, while some receive the service for free. The quality of the offering is usually the same across clients, or of acceptable standards, but the social enterprise remains economically viable, meaning its business model is self-sustaining. It is vital that wherever big business is involved with CSI, the areas of contribution should be focused and impact-driven, with measurement tools in place. Broader value would, however, be created through relationships with procurement and leadership. Furthermore, research and development departments should allow for more innovative products and services to access markets through these partnerships. This would mean that sustainability would become a core part of doing business, rather than a sideline, tick-box activity.
FUELLED BY PASSION Developing social enterprises is a shift in mindset, usually headed up by a disruptive, passion-fuelled innovator who has a deep belief in his or her ability to develop a systemic solution to a problem faced by minorities who are not in a position to address it themselves. This individual is no different from a purely commercial entrepreneur obsessed with an idea. One needs confidence in moving from an idea to realising it and getting people to pay for your offering. South Africa unfortunately lacks an abundance of innovators who are growth-oriented. Instead our entrepreneurs are predominantly subsistence or conduct entrepreneurs, because of lifestyle preferences, but lack growth ambition. Furthermore, we need to encourage a shift from the copycat syndrome of duplicating your neighbour’s successful business, by celebrating innovative solutions. While we keep pushing for job creation at the
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ENTERPRISE & SOCIAL DEVELOPMENT
The purpose of HEI is to create employment opportunities for the youth of Hillbrow.
expense of innovation, we will only receive short-term, low-quality work. Promoting social entrepreneurship creates new markets that advance South Africa as an innovative producer and not a consumer economy, while creating sustained, high-quality employment. In order to start a new business, one needs imagination and the ability to dream. The historical context of our country may stifle dreaming. While the story of the rainbow nation has gripped the world’s imagination, we are still a traumatised society overcoming inequalities and needing to break patterns of entitlement from both the end of the haves and the have-nots. Another factor stifling the development of new business is that we are a risk-averse society. Entrepreneur-rich countries have more of a propensity to accept risk as part of doing business, and do not frown on failure. While stories of failure do not bring comfort to investors, we need a shift in culture, where people feel safe to experiment with their ideas in order to bring them to life. We need to build confidence in communities – for instance, by enabling schoolchildren to step forward to solve the social problems they encounter, and complement this with relevant entrepreneurship training.
Social enterprises do not measure their success by profit, but by social impact
GETTING STARTED While access to finance is not the primary need of either social or commercial entrepreneurs, there is a need for context-appropriate finance to start new ventures. In recent years, we have seen rapid growth in the impact investor market. This is a form of socially responsible investing, with investors seeking both a social or environmental return, and a financial return on investment. We do, however, still see a risk-averse network of impact investors in South Africa who require an organisational track record, proof of concept, and generally want to invest well into the millions. Social entrepreneurs need to learn how to acquire clients or, at least, how to find people who will pay for their offering. At the start-up phase, their primary needs are industry knowledge, mentoring, access to market and low-level seed capital. In the absence of a thriving angel investor community, there is the opportunity for considered enterprise development finance to bridge seed capital requirements, or ‘risk finance’ accompanied by committed mentoring. Impact investment becomes more appropriate at the growth phase of the social enterprise as it prepares for rapid scale. Investors responsible for this capital injection would, however, need to be patient, as people, and not profit, come first for the social enterprise; community buy-in requires more persistence than a purely commercial offering. An ethical dilemma may also exist where there are high returns on investment required or an equity stake. This moves focus from reinvesting profit to extending the mission of the organisation, which is the core essence of the work of the social enterprise. A huge scaling consideration of the offering takes cognisance of the fact that every community is different and the outcome of the intervention may be different, requiring varied time, effort and investment requirements. This is not attractive to impact investors if they do not truly understand the field, which provides disappointing levels of deal flow.
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Social enterprises are often started by people who are taking leadership on addressing a need in society, such as orphaned and vulnerable children, the spread of HIV/ Aids, and mothers responding to a health concern a child is experiencing. These people are incredibly resourceful and possess a sense of mission, but may feel overwhelmed by having too many problems to solve which are too close to home, potentially eroding the economic and developmental value they create. While partnerships are ideal to remedy this, the needs are great and very few organisations are able to respond to this challenge. These changemakers may not necessarily have the skills or management capacity to create efficient, well-run organisations, when they have been moved to act by the heart. While educational institutions can provide one part of the lack of technical skills, customdesigned accelerator programmes for social entrepreneurs, along with mentorship, ensure rapid transfer of knowledge into the organisation.
CREATING A HYBRID ENTITY Another challenge in growing the sector is the absence of a legal entity in which to house it. The work of the social enterprise does not belong in the NGO framework, but neither does it belong in current commercial entity options. There is an increasing move of social enterprises to have a hybrid structure – in other words, having two legal entities: one a non-profit and the other a for-profit entity, with a trust overseeing the two. This raises concerns about governance, as the non-profit could be perceived as being a slush fund when the for-profit entity is the sole service provider of the NGO. Even when social enterprises register as a for-profit entity, corporates have a preference to bill for work of a social nature through an NGO, allowing them to have tax benefits through receipt of a Section 18A certificate. Being registered as a non-profit could also be clouded by a negative stigma of inefficiencies and donor fatigue. There are countries that we can learn from which have made the transition to social enterprises having a legal entity. The United States has the B Corporation, and the United Kingdom the Community Interest Company (CIC). What these entities have in common is that they recognise the role of social enterprises in creating a strong, socially inclusive economy. These entities are transparent and allow the founders to retain control of the growth path of the organisation, as they are not at the mercy of board decisions. Government would do well to create an enabling environment for social enterprises to work more effectively, by creating legal structures that reduce administration and create clarity for all stakeholders to engage with the sector. In order to design and grow businesses that more realistically reflect the reality of the social and financial shifts in the world, we need to aggregate efforts of government, the private sector and educational institutions in the advancement of the social enterprise movement. This is not a fad; the field was first named in 1972 by Bill Drayton, founder of Ashoka. With continued acknowledgement and support by institutions in South Africa, it can unlock a wealth of growth opportunities for public good.
www.pwc.co.za
We’re part of it: At PwC we’re proud to be creating value through our corporate responsibility initiatives, and we’re privileged to play a part in changing lives in South Africa.
Focusing on education and developing tomorrow’s leaders Education is a focus area for us. We believe in a holistic approach and over the years have supported schools all over South Africa. Projects include installing computer laboratories and mobile libraries, facilitating school infrastructure improvements, providing career counselling, and our staff facilitating job shadowing and tuition programmes. We also have over 3 000 students in our university bursary programme, 2 100 of whom are black. In 2013 the Association for the Advancement of Black Accountants of Southern Africa once again recognised us as the leading contributor of black CAs to the economy – for the third year running.
Developing skills for business success Entrepreneurial development is another key focus area for us. In 1992, PwC founded the Business Skills for South Africa (BSSA) Foundation. Since then, BSSA has provided over 30 000 entrepreneurs with the skills and tools to sustain their own businesses. We’re also particularly proud of the Faranani Rural Women’s Project, which imparts business skills to women in rural and disadvantaged communities. To date over 5 000 rural-based women have benefited from the programme.
Uplifting communities and providing hope The right to a home is a basic human right. Through our involvement with Habitat for Humanity, our staff experience what it’s like to give someone the ultimate gift. This spirit of voluntary giving is carried through to our staff programme Umbono, which enables our people to make a contribution to those in need.
©2013 PricewaterhouseCoopers (“PwC”). All rights reserved. (13-13845)
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ADVERTORIAL
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TOUCHING LIVES
A 15-year journey, and the pace never flags
ur fund can justly celebrate 15 years of continued progress. Initially, the bursary fund was administered inhouse by the NUM, but those duties were later outsourced to the insurer, Metropolitan Life. Administration was subsequently transferred to Southern Life, which later became Momentum. In 2010, our board opted for self-administration and the fund established its own administration systems. This necessitated a month-long shutdown, enabling us to establish our own office in the Johannesburg CBD. The office went into full operation in February 2011. Though administrative responsibility shifted through the years, our focus remained constant. That focus has always been on our students, their needs and how we can best provide the support they need for a successful graduation. In line with our NUM traditions, we believe the best form of help is self-help, and in 2008 it was decided to set up mechanisms to assist each annual intake by ensuring mentoring and coaching from their peers – more advanced students and graduates who know the challenges they face and how to deal with them. A key priority in 2008-09 was the establishment of the Core Team (Graduates Committee) to provide this assistance. Over a four-year period, the concept proved its worth, enabling us to dissolve the team in its initial form and reconstitute the initiative as the JB Marks Alumni and Associates. (This body came into being in September 2012.) Another priority was to increase awareness of the bursary fund’s services and reach out to more potential applicants. To this end, we introduced a new distribution method across NUM regions, using coded application forms to achieve better administrative control. Since then the return rate for our forms has risen from 26% to 59%.
Another important milestone was reached in 2010 with the inauguration of the JB Marks Awards, at the Hyatt Regency Hotel in Johannesburg, to recognise the achievements of our graduates. 76 graduates were honoured. Fittingly, our 2010 Alumni Award went to our first graduate, Dr Lepulane Solomon Mathaila. The 2012 Alumni Leader of the Year Award went to Nancy Makatseng Kalebe, a blind attorney who, despite all the odds, graduated with her LLB in 2003, and is now a practising lawyer specialising in criminal law and civil litigation. Another inspirational development – that same year – was the delivery of the first JB Marks Memorial Lecture by our former board chairman, Comrade Gwede Mantashe. His address at the University of the Witwatersrand commemorated the legacy of JB Marks, who died in exile in 1972. Over 15 years our fund has enabled 750 bursars to graduate
CONTACT DETAILS: Tel: +27 11 492 0601 Fax: +27 11 492 0953 Email: jako@jbmarksedutrust.co.za website: www.jbmarksedutrust.co.za
OVER 15 YEARS OUR FUND HAS ENABLED 750 BURSARS TO GRADUATE WITH MAINSTREAM TERTIARY QUALIFICATIONS with mainstream tertiary qualifications. R96-million has been disbursed to over 2 500 beneficiaries, with 500 students still in the pipeline. Hundreds of lives have been transformed. Yet it is the individual cases – especially the cases of deepest need – that remind us of the value of our work. One such case involved special beneficiary Nompumelelo Mashinini. She applied for a bursary in the 2010 intake. The application qualified for special consideration, but for some reason was omitted. Mpumi and her mother came to our office to check the status of the
application. Mrs Mashinini broke down and explained their plight. Mpumi’s father had died the previous year. Mrs Mashinini was unemployed. Her daughter had passed her Grade 12 exams and qualified for university entrance. Our fund was their only hope of making this possible. Fortunately, one last place was available. A week after our first meeting, I invited mother and daughter to our offices and informed them the last place would go to Mpumi. Mpumi was placed at Monash University SA and is the JB Marks student leader on campus. She is making good progress. For touching lives like this, we salute the visionary leadership of the NUM. Its foresight and wisdom led to the creation of our fund. We thank the NUM, MIT, MIC and donor partners which have added to that legacy over the years. We ask only one thing of our graduates … that they put their education and professional qualifications to good use; that they contribute to their communities and help our nation in its fight against poverty. Education is a vital weapon in this struggle. Use it well.
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PROFILE - THE HOPE FACTORY
SHIFTING PARADIGMS The Hope Factory is an established enterprise development organisation of the South African Institute of Chartered Accountants (SAICA). It mentors and trains potential black entrepreneurs to develop life and business skills in order to create new businesses or to grow their existing ones. By Annie McWalter, CEO, The Hope Factory
(From left) Nwabisa Mayeng of Beautiful Beginnings Consulting and Trading; Mbongeni Jawa of Entwine Instinct Textiles.
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he Hope Factory was started more than 12 years ago to develop, equip and support previously disadvantaged South Africans to establish and grow their businesses. It employs an innovative process of guiding, supporting and equipping the grassroots entrepreneur through the survivalist, subsistence phase of his or her business towards the small business of the future. It is the delicate balance between equipping through business training and encouraging self-actualisation, which leads to the ‘tipping point’ for the entrepreneur and signals the beginning of a successful journey to a sustainable business.
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PROFILE - HOPE FACTORY (Clockwise) Group mentoring session in progress; Alrich Connolley of El Shaddai Chemical Manufacturing; Malose Manake of Moratiwa Tours; an entrepreneur in one-on-one mentoring session
‘The Hope Hub addresses challenges the entrepreneurs encounter, including low-cost rental space and infrastructure.’
Since its inception, more than 1 000 individuals have been developed, equipped and supported with the skills needed to achieve their highest level of independence.
THE BUSINESS MODEL Only 2.6% of start-ups survive their first few years. The Hope Factory acts as an enterprise development enabler that assists individuals from previously disadvantaged backgrounds. Through an interview and selection process, existing entrepreneurs are chosen to join its enterprise development programme and capitalise on the array of services it offers. Those who are potential entrepreneurs are selected to join the equipping phase.
EQUIPPING PHASE
THE HOPE HUB
The equipping phase for potential entrepreneurs consists of 20 weeks of business, technical and life-skills training. This phase is accompanied by extensive mentorship and guidance. After the 20-week equipping phase, the learners graduate.
Access to the Hope Hub provides an opportunity for more established entrepreneurs to grow their business. The Hope Hub addresses challenges the entrepreneurs may encounter, including issues around low-cost rental space and infrastructure.
THE NEXT PHASE
LOOKING AHEAD
Through the assessment and review process, the graduates either continue to the next phase or exit into the formal sector. The remaining graduates are assisted in registering their business and join existing entrepreneurs in the entrepreneurial development phase. This phase consists of a bouquet of services, underpinned by ongoing mentoring and business development, which includes network opportunities, workshops, seed capital investment, access to market support and further business training.
The Hope Factory has always stayed ahead of the curve in being able to anticipate business trends and implement sound strategies to compete effectively within a changing business environment. It is with this firm foundation that it is able to develop credible black suppliers for the corporate supply-chain management process. The Hope Factory is equipping and developing a strong base of black suppliers who can compete favourably in this space, by vetting small businesses against strict supplychain management compliance criteria.
WHAT SETS THE HOPE FACTORY APART? First, the business experience among its full-time mentors is unmatched. Second, it is focused on the entrepreneur – it grows them personally so that they can grow and develop their businesses. It’s a personal journey. Third, the Hope Factory is governed by SAICA. This exposes its entrepreneurs to a number of business networks. Additionally, it provides capital investment opportunities and measures its entrepreneurs’ businesses quarterly. This ensures sound business foundations and processes. Lastly, it is recognised as a leader in the enterprise development space, which enables it to create a seamless process to help companies to acquire enterprise development or socio-economic development points on the Broad-based BEE scorecard.
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RED FARMS SOCIAL FOOD SECURITY PROJECTS RED FARMS BROAD-BASED COOPERATIVE BUSINESS PARTICIPATION FARMING AND SOCIAL FOOD SECURITY PROJECT SOCIAL ENTERPRISE DEVELOPMENT PROJECT INITIATED AND DRIVEN BY THE RED ANT SECURITY, RELOCATION AND EVICTION SERVICES (PTY) LTD Red Ant is the initiator and driver of a social development project, Red Farms, which helps provide food to the underprivileged in Gauteng. Red Farms operates as a cooperative business participation management farming initiative that co-opts emerging farmers into various management positions that are available on the project. They will also have a stake in the profits delegated to each management position. At present the project is providing food support on a weekly basis to the elderly, schools, needy families, child-headed homes and orphanages and feeds 7 000 households a week and 28 000 per month. The project currently runs a range of activities including: • soil preparation; • irrigation and seeding; • harvesting; • distribution to the needy; • fish farming; and • Training. This project was recently adopted by our Honourable Mayor Mr Parks Tau of the City of Johannesburg.
For more information please contact:
Red Ant Security Relocation and Eviction Services (Pty) Ltd T/A Red Farms Social Food Security Projects Tel: 011 444 9226 | Fax: 011 444 9320 | Email: redant@telkomsa.net
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Advertorial
Driving positive change Through health, education and sports
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etropolitan believes that corporate social investment has a fundamental role to play in supporting South Africans. Uplifting communities through health interventions, promoting education and developing sports is at the heart of its business. The company’s CSI objectives are guided by the principles of collaborative partnership, engagement, long-term sustainability and relevance.
‘We are committed to working together to enable development and improve the quality of life of disadvantaged communities.’
Health Metropolitan supports projects that focus on awareness, treatment and care of lifestyle diseases such as HIV/Aids, TB and diabetes. These are some of the key healthcare burdens that affect itsmarket. It partners with initiatives that improve access to quality healthcare in rural and township communities. Education Metropolitan’s education strategy looks at developmental interventions to address the effective delivery of quality education. It focuses on early childhood development (ECD), in support of the maxim that the first seven years of a child’s life are its most formative. It also provides resources to enhance the environment for learners and educators at primary and high schools across the country. It consistently promotes financial education to empower its customers to make informed decisions about their financial wellbeing. This year, Metropolitan contributed towards the installation of a borehole at
communities, we aim to ensure that the poor, vulnerable and excluded within South African society are able to better themselves,’ says Belinda Faulkner, brand executive at Metropolitan.
Matsafeni Primary school, in rural Mpumalanga. This has seen to a consistent water supply for the school, and also supports an agricultural project that not only sustains the school, but stimulates the local economy and thereby the sustenance of the community. It also supported a project to restore classrooms that were
severely storm-damaged at Mthembumzamo Primary School in uThukela, a rural community close to Ladysmith. ‘We are committed to working together to enable development and improve the quality of life of disadvantaged communities. Through our involvement and partnership with these
Sports development Metropolitan has been an integral part of development soccer for over 20 years in southern Africa. ‘We approach sponsorships holistically and see soccer as a catalyst for change. Through our sponsorship of the Metropolitan U-19 Premier Cup and Metropolitan SASFA U-16 Cup, we provide developmental workshops for the players.’ Faulkner believes that these sponsorships help young, aspiring soccer players to gain muchneeded exposure. ‘We believe in forming partnerships that support nation-building through efforts that contribute to employment, increasing wealth and addressing key healthcare challenges that many South Africans face,’ concludes Faulkner.
Life | Funeral | Education | Retirement | Health | Investments Metropolitan, a division of MMI Group Limited, an authorised financial services provider.
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Profile – THUTHUKA bursary fund
Transforming a profession Last year the Thuthuka Bursary Fund (TBF) programme produced its first crop of black chartered accountants, 26 in all, bringing to life the true meaning of Thuthuka – to develop. By Yuven Gounden
The Thuthuka programme focuses on two strategic objectives: to grow the pipeline of prospective CAs in South Africa and to transform the profession to match the country’s demographic profile. In 2002 there were 322 African and 222 coloured chartered accountants (CAs(SA)). By the end of 2012, the numbers were 2 520 African and 973 coloured CAs(SA). Since its inception, Thuthuka has grown from one provincially based project to over 20.
Strategic partnerships Donors: the lifeblood of Thuthuka TBF is funded by corporate donors, and the rate at which it is transforming the financial services industry has won the approval of Minister of Higher Education and Training Blade Nzimande, to the extent that his department, through the National Research Foundation, now matches TBF donor funding, rand for rand. Some of these corporate donors initially started spending their CSI money on the programme, but increasingly realised that budgets needed to be allocated from the business unit, because they have found the Thuthuka approach of producing chartered accountants to be the best way of developing valuable skills within their respective institutions. The programme has been embraced by donors because it equips deserving youth with skills they so desperately need to succeed in the marketplace, and it provides the opportunity for corporates to ‘grow their own timber’.
The results speak In 2013, TBF students writing the SA Institute of Chartered Accountants’ Initial Test of Competence (ITC) examination to become CAs(SA) had a pass rate of 88%, compared to the national average of 73%. In addition, 60% passed the QE2 – a result which has these ‘previously disadvantaged’ Thuthuka students outperforming their more ‘advantaged’ colleagues. Currently, 50% of those eligible to write the qualifying exams are African or
The TBF team (from left) Nthato Selebi, Prudence Phetlho, Constance Mogagabe, Jane Seate and Jurgen Fourie with the certificate TBF received at the SA Premier Business Awards for being a finalist in the Media category.
coloured, compared to just 1% a decade ago. ‘If success is measured in terms of tertiary education results, as indeed it should be, then Thuthuka has not only met, but surpassed ,our expectations,’ says SAICA’s Chantyl Mulder. A prerequisite for qualifying as a CA(SA) is to pass the Certificate in the Theory of Accounting (CTA) at Honours level. During 2012, the Thuthuka contribution to CTA passes amounted to a significant 30% for African and coloured passes in total. Passes among coloured students totalled 23%, while African passes totalled 32%.
Recognising excellence TBF was selected as a finalist in the `Media category of the SA Premier Business Awards. This award recognises the best efforts of programmes in broadcast, print and online media platforms, that creates awareness around economic development, trade, job creation and entrepreneurship. Speaking on the topic, Minister Nzimande summed it up well: ‘We are collaboratively improving accounting skills in all sectors of the economy. SAICA has further demon-
strated commitment to the development, growth and transformation of the profession through its many other initiatives, most specifically the Thuthuka project and other efforts within the public sector financial skills development environment.’ Were it not for the collaboration of TBF-accredited universities, the programme would not have achieved such great heights. These include the University of Cape Town, North West University, the University of Pretoria, the University of the Free State the University of Johannesburg, the University of the Witwatersrand, Nelson Mandela Metropolitan University and Stellenbosch University. Interestingly, the recently published independent FNB Fund Tertiary Bursary Programme yielded fascinating results. The following excerpt, in particular, is worth noting: ‘Thuthuka offers a seamlessness which creates the ideal environment for students making the difficult transition from high school to tertiary institution. They also feel a strong sense of belonging, as funds are provided for additional and distinguishing facilities We strongly recommend that the Thuthuka model of on-boarding and of implementing supportive interventions be adopted as the standard for all providers. The funding strategy should address the needs of the whole student with a comprehensive programme.’
Pledging your support In its 2013–2014 Global Competitiveness Report, the World Economic Forum (WEF) rated South Africa number one in the world for the strength of its auditing and reporting standards – largely thanks to the quality of its chartered accountants. A recent survey of the top 200 companies on the Johannesburg Stock Exchange (JSE) found that almost 90% of finance directors are CAs(SA), more than 30% of directorships are CAs(SA) and 30% of CEOs of the JSE top 40 firms are CAs(SA). This shows that there is a demand for chartered accountants in the corporate world. By contributing R500 or more to Thuthuka’s Pledge Campaign, you will be addressing a challenge that the country faces.
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PROFILE - MMI
EDUCATION DRIVES THE MILLENNIUM DEVELOPMENT GOALS With the 2015 deadline for achieving the United Nations Millennium Development Goals creeping ever closer, the foundation set up by insurance giant MMI Holdings is providing support to healthcare and education goals that align with those of the UN. By Khethiwe Nkuna, CSI manager, MMI Holdings MANY SA CORPORATIONS have revisited their CSI strategy in recent years, with MMI Holdings (formerly Momentum Group Limited) being no different. What was previously seen as a charitable activity is being restructured to bring it into alignment both with the financial group’s business strategy, the country’s broad-based black economic empowerment programme, as well as internationally with the UN Millennium Development Goals. The purpose of this repositioning, explains Dan Moyane, chairman of the MMI Foundation, is to ensure that CSI spending produces visible change and tangible differences without creating a culture of dependency. Achieving the UN Millennium Development Goals requires greater urgency as the 2015 deadline approaches. In September 2000, leaders of 189 countries met at the United Nations in New York and endorsed the Millennium Declaration, which was a commitment to work together to build a safer, more prosperous and equitable world. The declaration was translated into a roadmap setting out eight time-bound and measurable goals to be reached by 2015. The MMI Foundation – which is independently run and operated – was initially launched in 2009 as the Metropolitan Foundation and evolved into its current structure after the 2010 merger of Metropolitan and Momentum, both of which continue to play an important role in socioeconomic development (SED). The MMI Foundation is the vehicle through which MMI Holdings fulfils its commitment to SED by its preferred method of partnering with other interested parties, such as NGOs, government and the community at large in the fields of health and education. ‘Our strategy is all about assuming responsibility. Business has the skills and capacity and should leverage these to make a
difference in society until such time as government has built its own skills and capacity to bring about the structural changes necessary to address the root of societal problems – unemployment, healthcare and education,’ Moyane says. Having two powerful brands within the group, it has been seen fit to give each its own CSI focus. For instance, in the case of Momentum, it is people with disabilities, children with vulnerabilities and post-graduate bursaries. The major area of focus for Metropolitan is education, including financial literacy in the workplace and community through community projects. Metropolitan also looks at health, but with specific focus on HIV/Aids and life skills. In one of its flagship projects, Metropolitan partnered with the Actuarial Society of SA (ASSA), sponsoring its Actuaries on the Move
‘Our CSI objectives are guided by the principles of collaborative partnership, engagement and long-term sustainability.’ - Khethiwe Nkuna
initiative to bring much-needed extra tuition on Saturdays to school children to assist them in Mathematics, Science, English, study skills, computer skills and life skills. The joint venture project is now being managed directly under the banner of the MMI Foundation. Following extensive research and analysis, the project was established in 2002 with a focus on enabling talented learners from Grade 12 schools in communities with poor educational resources to succeed at tertiary education level. The project has grown over the years to partner with Nelson Mandela Metropolitan University, the University of the Free State, Durban University of Technology and the University of Johannesburg who provide the facilities and tutors. Siyavula provides special online access to Science and Mathematics text books. Potential Unlocked (PU) provides additional exercise material. Easemedia Solutions provides laptoptracking services and IT-related support to the programme. ‘The background on the project is that the ASSA diversity committee was tasked with developing initiatives that address the distorted membership profile of the organisation,’ explains Moyane. ‘The project has recorded notable improvements in the learners’ academic performance and has so far resulted in several learners going on to study mathematics and science-related fields at tertiary level, including actuarial science. An exciting future awaits them as they prepare to fulfil their potential as proud, productive South Africans.’ ‘Our CSI objectives are guided by the principles of collaborative partnership, engagement, long-term sustainability, relevance and a commitment to rolling up our collective sleeves as an organisation in order to work together both as a group and with our partners,’ comments Moyane. ‘We particularly believe in volunteerism by our staff. ‘We support programmes that enable development and improve quality of life,’ he continues. ‘The aim is to ensure that the poor, vulnerable and excluded within South Africa become included – they are enabled to better themselves through our involvement and partnerships, as well as via projects that are committed to this cause. ‘We believe that MMI Foundation’s focus will assist our social partners towards the achievement of more MDG targets by 2015,’ concludes Moyane.
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investing in others gives us the greatest returns At Momentum we believe that well-structured, impactful social investment has the ability to contribute positively to nation building and to drive positive change in the communities that we operate in. We do not view social investment as a ‘nice to have’, it is a critical part of our corporate citizenship. The Momentum Fund Programme for people with disabilities is the only one of its kind in the country, and aims to build a society inclusive of those with disabilities through care, prevention and education. Since 2006, the Momentum Fund has invested over R49.4 million in the disability sector countrywide, supporting approximately 90 Non Profit Organisations over that period. In 2012 alone, the Fund has supported 25 organisations through an investment of R6,5 million with over 57 000 people benefitting from the various programmes. To find out more about Momentum’s social investment programmes, go to www.momentum.co.za
advice | insurance | investments | health
Momentum, a division of MMI Group Limited, an authorised financial services and credit provider
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PROFILE - MEDSCHEME
EDUCATION IS CRITICAL TO ADVANCING HEALTHCARE Enterprise development projects enhance the economy by supporting SMMEs that play a vital role in the country’s overall growth and development.
MEDSCHEME has opted to support privately owned nursing colleges as a way of augmenting the number of nurses who graduate from the public system. Khanyisa Nursing School, a nursing college in Rosettenville founded by Sister Anna Nkuna, is one such beneficiary of Medscheme’s enterprise development programme. In May this year, Medscheme unveiled Khanyisa’s newly refurbished buildings, a culmination of a long-term relationship between the college and Medscheme. The company has invested more than R1 million in the project, to upgrade the facilities and provide education and training equipment to make the environment more pleasant and conducive to learning, for both staff and students. The contributions also boosted the institution’s training capacity, to ensure that graduate nurses are equipped to meet the health needs within their communities.
There is a shortage of 8 000 nursing assistants and 20 000 staff nurses in the country. The school is one of a number of privately owned nursing colleges that have opened up in recent years in a bid to address the shortage of qualified nurses in South Africa. According to the Human Resources for Health Strategy, launched by Health Minister Aaron Motsoaledi last year, there is a shortage of 8 000 nursing assistants and 20 000 staff nurses in the country. Yvonne Motsisi, Medscheme’s executive director for branding and communications, says the group’s investment in the college is a reflection of its commitment to the
transformation of the healthcare system, through increasing the number and quality of nursing staff produced in the country. ‘We believe that initiatives of this nature will go a long way in contributing to government’s priorities in addressing the severe shortage of healthcare personnel in South Africa,’ Motsisi says. At the launch event, which coincided with the commemoration of International Nurses Day, she said: ‘We are delighted to be involved in a project of this nature, which demonstrates the role the private sector can play in contributing towards the transformation of the country’s healthcare system. Nurses are the cornerstone of primary healthcare in South Africa, and we believe that our support for Khanyisa and similar projects will go a long way towards ensuring that colleges produce competent nurses who are well equipped to meet the health needs within their communities.’ Medscheme supports a number of similar projects across the country, including Future Nurses Nursing School in Germiston and Ithemba Nursing Academy in Eersterust, Pretoria. Motsisi adds that to date, the company’s support for Khanyisa Nursing College has involved rebuilding a much-needed training facility, which includes classrooms, a practical demonstration room, bathrooms and a kitchen. In addition, Medscheme has donated practical training equipment and will furnish the new training facility. The campuses are deliberately located in areas that are easily accessible to people from previously disadvantaged communities and a significant number of Khanyisa students are from rural areas. She says Medscheme’s investment will enable the school to increase the number of students it enrols and improve the quality of teaching, as well as increase the number of courses it is accredited to provide. The theme for this year’s International Nurses Day, celebrated on May 12, was ‘Closing the Gap: Millennium Development Goals 8, 7, 6, 5, 4, 3, 2, 1’, and Khanyisa Nursing School is doing precisely that. Medscheme looks forward to a long and fruitful partnership with the school.
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BlackAfrica Group _ 2852
B-BBEE contributor status
Transformation is at our heart
Level 2
We are proud to announce that we have again reached new heights, achieving Level 2 B-BBEE* contributor status.
*Medscheme’s B-BBEE Level 2 and contributor status was confirmed by a SANAS-accredited BEE verification agency.
Medscheme, South Africa's leading medical scheme administrator and health risk management solutions provider, is committed to transformation externally and within the company itself. Externally our drive for transformation finds expression in the upliftment of previouslydisadvantaged communities. This is achieved through our Socio Economic Development (SED) and Enterprise Development (ED) programmes where our approach is to establish long-term relationships with the beneficiaries and to maximise our impact while ensuring sustainability. Our commitment to empowerment and innovation lies at the heart of our decision to drive transformation from within through skills development and investing in the ongoing personal development of all our employees. This passion for transformation and progress is evident in our service, our solutions and, ultimately our commitment to our business partners and to South Africa as a whole.
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Advertorial
a strategic change Standard Bank’s new CSI focus is education
A
frica’s largest bank by market value and the number of customers we bank, Standard Bank has a duty to invest in the communities we operate in. During our 151-year history our approach to Corporate Social Investment (CSI) has evolved with us. It’s now entering a new phase, as we refocus our efforts towards helping to raise the standard of education in South Africa. By positively influencing education outcomes, we aim to improve the economic prospects of the customer base in South Africa. Below, we outline our revised CSI strategy, which has a deeper strategic focus, improved alignment and appropriate communications, monitoring, evaluation and reporting. SBSA CSI Vision Statement: The Standard Bank of South Africa (SBSA) CSI programme invests in society to create social value that impacts communities where we operate, to improve their capacity to be more sustainable and to enhance future business prospects. We aim to continuously improve the reputation of our organisation and build credibility towards being a preferred bank and employer and being a good corporate citizen by conducting business in a responsible manner. SBSA CSI Mission Statement: We invest in education by creating social partnerships to deliver educational development solutions in communities. In making investment decisions, the bank endeavours to collaborate with government, business and relevant community organisations. The strategic review The key focus of the strategy review was to evaluate the positioning of the CSI programmes, contributions, developmental positioning and resourcing of the projects,
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The CSI programme has developed strong partnerships with Non-Profit Organisations who are implementing projects in partnership with SBSA. governance, oversight, communication, monitoring and evaluation of developmental outcomes. Key features of the revised strategy: The strategic developmental area of focus is education; this is because education is key in bridging gaps which if not addressed, will result in social ills such as poverty, as well as providing learners with prospects that will enable them to be employable and productive in the current demanding world. In addition, enterprise development will continue and will expand in scope to include other forms of business enterprise. More important is the decision to align CSI enterprise development with business, hence this pillar of CSI has been moved to the Black Small Medium Enterprise unit in Personal and Business Banking (PBB). This will ensure the right support and linkages to the businesses under CSI enterprise development programme In positioning CSI within the organisation, the business rationale for CSI focuses on: • Enhancing the bank’s reputation by linking CSI with the corporate brand • Improving the employee value proposition through the Employee Community
Involvement programme • Supporting business by engaging and sharing information with regional banking executives • Continue to grow new markets • Demonstrate local relevance and responsive through effective communication Standard Bank has an established Employee Community Involvement (ECI) programme. Formal policies and processes are applied for matching employee contributions and a variety of volunteering days and initiatives are undertaken throughout the business, supported by structured back-office control. Knowledge, reporting, monitoring, evaluation and communication Currently there are strong policy and procedural controls in place to manage financial and contractual risk. This will be strengthened by improved reporting. A reporting ‘dashboard’ for each area of focus will be developed for feedback to management on project progress.
A Monitoring and Evaluation Framework will also be adapted for different projects. For new projects, the M&E will be incorporated as a condition of funding and will be customised for each project prior to final project approval. In measuring the return on
investment, a set of metrics that provide an indication of how CSI is being utilised and adding value will be used. Finally, increased CSI communication will be aimed at both internal and external audiences and specialist media will continue to be used to share knowledge and lessons learnt.
Contact Details: Tel: +27 11 631 3618 Website: www.standardbank.com Email: mankodi.moitse@standardbank.co.za
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partnership with government
development is a collective effort The National Development Plan (NDP) is gaining traction. Implementing this vision needs to happen in a relatively short period of time and with very limited resources. By Tshidi Selemagae Mokgabudi, advisory chairman, KPMG SA
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he ideals of the NDP are solid, but the practical realities necessitate a keen prioritisation, ownership at various levels and an unwavering commitment to implementation, to actually achieve the desired, measurable outcomes. While the NDP is the key deliverable produced through the National Planning Commission, it would be foolhardy to even begin to think that ‘it is government’s problem to implement’. There simply isn’t the capacity in government to reach the full extent of the plan, nor would that be right. This is all about South Africa as a unified nation, where we all have a responsibility to operate in our respective spheres, to the best of our abilities and with our available resources, to realise the ideals of the plan. In particular, it can only be through strong collaboration – built on a foundation of trust, a common purpose and respect for each other’s roles and contributions – that we’re going to see results. The prize is so profound that we cannot simply ask: ‘Are we going to do something with regard to implementing the NDP?’ To the contrary, the question that should be being asked – within government, across business and throughout civil society – is: ‘What are we doing to support the implementation of the NDP... and is this enough?’ The strength of our ‘rainbow nation’ is precisely that – the breadth and depth of our diversity. Everybody, at an individual and corporate level, has something to offer. It is through combining and blending these unique offerings that we can achieve so much more together. So, for instance, government may establish the legislative and infrastructural framework to make the path clear for agreed initiatives; business may lead the project implementation, access to funding, and application of the relevant tools and methodologies; civil society may play a key role of truly understanding the needs and opportunities, and ensuring that the final key outcomes are indeed what are required.
possibilities to actively seeking outcomes that are even beyond expectation. This also talks very much to the theory of the ‘tipping point’ – once we can achieve this, as a nation, the momentum of the NDP’s implementation is set to become unstoppable. At this stage, we’re still far from this, and so there is much to be done. Collaboration doesn’t necessarily imply big – but collectively it must result in a big impact. It was the American cultural anthropologist Margaret Mead who famously said, ‘Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.’ This thinking paints an entirely new paradigm. If each leg of government, businesses – no matter how large or small – and civil society across the spectrum, from the more established NGOs to the brand-new start-ups fuelled only by passion and a vision for the future, could get together, the results would almost certainly be astounding. On the flip side, attempting to positively shape our future on one’s own is not only lonely, but also far less likely to succeed. The tasks at hand are simply too complex and too vast to even think of this folly. There is no doubt that a very welcome trend in the corporate citizenship landscape in South Africa is increasingly towards collaborative efforts. Public Private Partnerships (PPPs) have already proven their success time and again, typically with government and the private sector working together. Government also engages directly with several NGOs, but practically most often only to a point, with a number of unresolved anxieties regarding sustainable funding and resource allocation. Business’s collaboration with civil society has very often successfully been led through employee engagement, encouraging individual commitment that extends well beyond the traditional workplace and working hours, but much less successfully directly with identified charitable organisations. The model of engagement – what is required and what works well – is maturing rapidly. It is widely accepted and increasingly expected that there will be increasing collaboration, with all parties playing a key role, each in their own right.
‘Once we acknowledge that we’re in this together, then a natural part of the process is for all parties to work together.’ - Tshidi Mokgabudi
PHOTOGRAPHY: iSTOCKPHOTO
A COMPELLING VISION FOR THE FUTURE The NDP in its published form lends itself to be an inspirational, engaging read. We’d all love to see every aspect of it delivered ‘yesterday’. It talks to our current fears and sets out a compelling vision for a future that we can all relate to and all want. But the reality is that this isn’t going to simply happen. It’s going to take sustained hard work, dedication and commitment. It’s going to mean having to say ‘no’ to some initiatives, channelling the scarce resources to what are accepted to be the more essential projects. The decisions around this may not always be popular, but are guaranteed to always be necessary. Collaboration between government, business and civil society has a further spin-off advantage in this regard. If we are all engaged, each putting our share of ‘skin in the game’, it makes it so much harder for any stakeholder to be a conscious naysayer. Once we acknowledge that we’re in this together, then a natural part of the process is for all parties to work together, moving beyond the constraints of perceived limited
SELF-RELIANT, SUSTAINABLE DEVELOPMENT In terms of social protection, the NDP explicitly focuses on building and utilising the capabilities of individuals, households, communities and NGOs to promote self-reliant, sustainable development. What is particularly exciting, when one considers the question ‘but how?’ in the context of the wider NDP, is that the goals – and required actions – go way beyond the more obvious project-based initiatives. The plan explicitly extends to absolutely fundamental elements such as ‘transforming society and uniting the country’. As the NDP document states: ‘It is important for all South Africans to be active citizens and exercise leadership through society.’ How much more powerful this immediately becomes if this is the model that is followed to build and ultimately sustain the end state. All of this talks to a model based on the fundamental premise of collaboration, which all begins with a common vision and trust.
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Advertorial
BUILDING HOMES CHANGING LIVES
Collective efforts bring about significant change
C
orporate social investment is a cornerstone for successful development within South African society, but this cannot effectively be implemented without the support of, and partnerships with, large organisations in the private sector. Given the challenging social context in the country platinum miner, Impala Platinum (Implats) strongly believes in getting involved and investing in social development initiatives, particularly in the communities that are home to its employees and their families. The company’s extensive corporate social investment programmes focus on ensuring the success and well-being of these areas and constructively contributes to the establishment of communities that are viable and sustainable beyond the life of the company’s mining activities. Implats’ socio-economic development expenditure for FY2013 benefited more than 100 000 people in South Africa and 12 000 in Zimbabwe; of these, more than 28 000 were community members that benefited from new and improved infrastructure arising from Implats’ investments, including hospital upgrades, water infrastructure and new primary and secondary schools. The company’s most significant contribution to the well-being of its communities and employees is the investment in to improving accommodation and living conditions. Through this investment Implats seeks to create local communities in which employees can reside with their families in a stable, healthy and secure environment within commuting distance of their place of work. Implats actively promotes home ownership through the development of integrated residential suburbs,
‘The completed Platinum Village will ultimately consist of 2 420 houses’
and also provides quality singleperson and family accommodation. The housing programme kicked off in 2007 in Boitekong, Rustenburg. The Sunrise View development was built and funded by Implats and the houses
Contact Details: Tel: +27 11 731 9000 Fax: +27 11 731 9254 Email: investor@implats.co.za website: www.implats.co.za
were subsequently sold to employees at cost price. Additional units have been built and this development now comprises some 1 717 units. A second development in Rustenburg, Platinum Village, was initiated in 2012. The project will
realise a total of 2 420 units at an estimated cost of R1 billion. In addition, Implats has built 108 units close to its refining operations in Springs and are currently constructing an additional 122 houses in Burgersfort near its Marula operation. Implats is very mindful of its responsibilities to the communities in which it operates and continually strives to improve the lives of all stakeholders.
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PROFILE – IKWEZI
GROWING SUCCESS, NOT JUST VEGETABLES Started by five women in 1997, the Ikwezi Vegetables and Poultry Co-op in Mpumalanga is now gearing up to export its produce. By Nazareen Ebrahim IKWEZI, located in the Skhwahlane Trust near Tonga in the Nkomazi district, Mpumalanga, was started as an association in 1997, with the simple goal of planting and selling vegetables to provide an income for five members’ immediate families. They also gained permission from the Matsamo Tribal Authority to farm the land. In 2011, Ikwezi became registered as a co-operative, headed by the eldest daughter of the Sambo family, Makhosazane Sambo has successfully helped to secure funding and training from the Department of Agriculture, the National Development Agency, and the Mobile and Agri Skills Development and Training (MASDT) organisation. The co-op currently employs 50 people from the community; 32 staff are permanent, while 18 casual staff are brought in when harvesting vegetables, including beans, tomatoes, all green vegetables and okra. Employees also benefit in other ways. The co-operative has donated seedlings to them and shown them how to grow vegetables in their own gardens. Many have opened bank accounts for the very first time. ‘It has been a long journey,’ says Sambo. ‘But we are now beginning to taste the fruits of success. For Ikwezi, there is only one way and that is the way forward - forward to being a major quality food producer with a strong focus on the export market.’
development of the farm. During the same year, Cullinan Diamond Mine injected R1 million into the project for the sustainable borehole and the erection of seven greenhouse vegetable tunnels. In 2011, the National Development Agency (NDA) provided Ikwezi with R2 million, which was dedicated towards building a pack house, goods shed and buying a bakkie, among other activities. MASDT has also been a catalyst in Ikwezi’s growth. MASDT business development officer Inocent Makuwaza explains: ‘MASDT developed a business plan for the co-op and presented it to the NDA, which provided the government grant of R2 million. MASDT was then able to provide agricultural training in the form of class-based workshops and
Ikwezi is currently producing most vegetables: tomatoes, potatoes, green beans, sugar beans, cabbages and green peppers.
NEXT STEPS
FUNDING AND BUSINESS MODEL The project was initially funded by a group of five women, taken from their savings and hard-earned money. The Department of Social Development then gave Ikwezi an R80 000 grant in 2001, after seeing the successful rise of the co-op. In 2006, the Mpumalanga Department of Agriculture, Rural Development and Land Administration supplied fencing for the project’s farm, and then later funded the installation of a drip irrigation system for 5ha of the farm. Both of these initiatives amounted to R780 000. During this time, Woolworths was engaged as a market for Ikwezi’s vegetables. The Department of Trade and Industry came on board in 2010. Its contribution assisted with raw materials to the value of R350 000 towards vegetable planting and
practical training; this training is needsorientated to ensure efficiency and adequate skills transfer.’ Adds Sambo: ‘It was through MASDT that we managed to secure the R2 million loan from the NDA and grow to where we are today. Our relationship is spontaneous and healthy, and, just like our produce, it is sure to grow.’ Ikwezi is currently producing most vegetables: tomatoes, potatoes, green beans, sugar beans, cabbages and green peppers. The produce is then supplied to local markets, including Spar Malelane, Spar Naas, Lowveld Sugars, and five school circuits through the Mpumalanga Department of Education feeding scheme. ‘With our new pack house, we are well able to serve the small growers around us, as well as by packaging, cold-storing and transporting their produce,’ Sambo says. The co-op’s success has been duly recognised. Some of the accolades Ikwezi has received include the National and Provincial Female Farmer Completion A in 2002, 2003 Provincial Farmer of the Year Award, Mpumalanga Productivity SA Award 2012 for outstanding achievement in productivity improvement, and the Topco Top Women Award 2013 for Best Civil Society Organisation.
Makhosazana Sambo with MASDT business developmet officer Innocent Makuawaza
The growth plan for Ikwezi in the short to medium-term is to have a fully functional pack house fitted with two cold-storage rooms. Progress so far includes the erection of the structure and roofing. However, the cold rooms are not fitted with a cooling system yet and the conveyer belts (on which packaging will be done) are currently not operational. These machinery upgrades will activate the ultimate goal of Ikwezi, which is to tap into the vegetables export market. Currently Ikwezi’s produce is sold only locally. Sambo reflects on how far the co-op has come and says there is much work still to be done. ‘The main vision of Ikwezi is to be the best agricultural co-operative in South Africa, and to be exemplary to other co-operatives by mentoring and developing emerging associations and operatives in Mpumalanga, and subsequently in South Africa.’
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ur,
r?
Be authentic Stakeholders and consumers are savvy to any type of spin tactic. The voice used in all social development communication must be true to the organisation’s values and aspirations. Owning up to challenges and things learned is key to providing stakeholders with an honest reflection of the work being done.
PROFILE – KAELO ENGAGE
HOW TO... What executives should know about communicating social development. By Sara Campbell, MD, Kaelo Engage
Tell the personal story The best social development stories are illustrated when organisations let their beneficiaries tell their stories in a credible and inspiring way. Social development content platform, Kaelo Stories of Hope, which is broadcast on e.tv, has adopted this approach with great success. From the young learner who has access to the latest technology at school, to the farmer who grows cabbages as part of a thriving co-operative, the magic of change lies in these stories and how they are told. Engage the audience The days of one-way communication are long gone. Organisations need to look at ways
Don’t be afraid of the media Journalists are trained to uncover a story and while they are generally willing to report fairly on social development activities, they do want to report on a story that is newsworthy.
of inviting conversations about their social development programmes by asking further questions from their audiences and joining in discussions where possible. Social media channels such as Facebook and Twitter are platforms where this form of engagement is easily facilitated.
Emphasise commitment and impact Any social development communication strategy should adequately emphasise and document the long-term outlook and commitment of the organisation. Research has shown that consumers and stakeholders can become a company’s most important advocates if they believe in the quality of the initiative.
Focus on the issue and provide a context Effective communication should be woven in and must unpack the social issue that the company’s social development programme is addressing, and how this delivers towards South Africa’s broader development agenda and the National Development Plan.
Use third party endorsements Credibility can also be built through reputable third party endorsements, especially if information is provided by noncorporate sources. Allowing experts to have an opinion and a voice in a company’s story can boost an organisation’s credibility and the story’s believability.
Showcase your social development projects on SAʼs leading media platform
Sarah Campbell sarah@kaeloengage.com 011 303 7000 www.kaelosa.com @KaeloStories
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Innovation – Development Solutions
we are Falling, not failing We must face reality and be able to reflect on our own shortcomings as a society, community, organisation and individual. By Thabang Skwambane, founding director of the Lonely Road Foundation
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hen we started the Lonely Road Foundation, it wasn’t meant to be an organisation that does anything but assist a group of old ladies who cared for 64 young orphans. We mistakenly believed that bringing the NGO sector into the community would solve the growing problem of orphaned and vulnerable children in rural communities. We soon learnt that the NGO sector and government didn’t have the solution to the problem, and we would instead have to find a way ourselves to respond to the challenge. We made many mistakes along the way, and our greatest understanding was that we had to remain focused on providing the right environment for the community to solve their own problems, rather than to provide the solutions ourselves or the actual resources for them. It is not a simple concept, and in our work we continue to make mistakes that have been part of the learning curve for both the organisation and for social development as a concept. Making mistakes is part of what we do, and as the Chinese proverb says: ‘Only a fool falls into the same ditch twice.’ We nevertheless remain positive and try to reflect often enough to change course, so that we don’t fall prey to our own stupidity. That is why we have survived for almost seven years as a start-up NGO.
The power of partnerships It is in the iterative process that small gains are made, and soon the collective result emerges. The positive outcomes are often so different from the initial vision that we struggle to take credit for their creation. It is by doing the work in partnership with the community that it happens and it is also the small, but significant, partnerships outside of the NGO sector that ensure its longevity. There are a lot of issues in creating a community-based response model, and the approach is not tried and tested in South Africa. We cannot do it alone, and that is where the cooperation between the NGO sector, the public sector and the private sector needs to happen. These approaches are often referred to as cross-sectoral or tri-sectoral partnerships or solutions. I prefer not to call them anything, because we can get too caught up in terminology and not successful inputs, processes and results. In Ga-Dikgale, a rural community of 120 000 people to the north-east of Polokwane, we have 15 drop-in centres where children receive a daily meal. These are all community-based organisations serving 3 000 orphaned and vulnerable children. The children have many needs, from clothing and hygiene to basic healthcare and psychosocial support. One thing that never changes is that they are always hungry, and we are always in search of sustainable ways to produce, procure and prepare food for them. In 2012 a positive result came from collaboration between Reel Gardening, an NGO that focuses on building food gardens, and the Lonely Road Foundation. The complexity of such a simple task was that so many partners were needed to ensure that we would succeed. We needed land that could be dedicated to the drop-in centres, water to maintain the gardens, volunteers to tend the gardens, funds to pay for the project, and Reel Gardening to provide the seeds and training to upskill the entire team! We got land from the tribal authority, led by Kgosi Solly Dikgale and Makgosi Clarah Dikgale; we got tanks for rainwater harvesting from JoJo Tanks, to ensure the continuous supply of water; we got local government to deliver thousands of litres of water to the drop-in centres; we got funding from the Nashua Children’s Charity Fund; and we got a bunch of ‘roadies’, our volunteers, to come out and dig and plant the food gardens.
‘We cannot do it alone, and that is where the cooperation between the NGO sector, the public sector and the private sector needs to happen.’ - Thabang Skwambane This is a real example of small contributions that led to a real result as we now have 11 fully functioning and successful food gardens. Without the support of the tribal leadership, government, the private sector, the community and concerned citizens, we couldn’t have delivered what is now a sustainable, albeit imperfect, food source for our children.
A tri-sectoral approach These projects need coordination, and what we often fail to see is that there are people behind every action that leads to an end result. Although we talk about cross- and tri-sectoral approaches, it is the attitudes and mindsets of the human beings involved that define how successful the cooperation and collaboration is, and, ultimately, the outcomes that they can achieve. We continue to build on that example, and have started other projects that are small and manageable. We are not trying to be large and scalable, because we don’t have the capacity to grow, but where we can get support and partners to help us iterate and innovate, and where we find an open-hearted desire to work together from our own sector and that of other sectors, we have had the greatest success. The Lonely Road Foundation wants to share whatever it can and learn as much as it can from others who are open to such a dialogue, but it has to be with the positive intent and benefit of the children that we serve, and not the self-interest of an organisation or individual. Over the past 12 months, I have learnt about the leadership required to achieve a certain outcome, and that it isn’t the leader who defines the achievement of that result - it is all the relevant participants who must develop solutions to problems collectively. What we do know is that we lack the capacity and resources to do the work and address the future demands of our children. What we have instead is every person who believes that they can, in some small way, contribute to our collective efforts. The solutions that come from open-minded, openhearted collaboration are far more effective than my own or those of one sector of our society.
Reflecting on our shortcomings We must face reality and be able to reflect on our own shortcomings as a society, community, organisation and individual, and in so doing, consider that, at every level, we have a role to play. The future of South Africa is at risk of a new generation of discontented youths who believe they have been abandoned by society, because we failed to reach out our hands to support them. We are in danger of perpetuating the social inequalities of the past, then imposed by law, but now through the social inequalities of circumstance and apathy. South Africa is not failing as a country, we are falling. Failure is the inevitable result of not performing, and performance is relative to expectations, but falling is relative to others who are engaged in the same activity. South Africa has been isolated for many years and a large part of the South African culture is defined by self-reliance. What we’re missing is true cooperation and collaboration, and it is far easier said than done. We have a duty to do more for our country and its people, but my real plea is for South Africans to approach CSI with the intent to partner and not to ‘help’ those in need, to offer solutions that restore dignity and do not patronise, and to serve without recognition. If we continue to fall, we will fail our children, and if we fall again, we are all fools!
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Advertorial
KEEPING PACE WITH FOOD DEMANDS
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AfricaBio – Investing in South Africa’s small scale farmers to improve food security.
outh Africa is a food secure country, but nearly a quarter of its population (over 50 million) are food insecure at a household level. According to the Agricultural Research Council, South Africa’s population will balloon to more than 80 million by 2035, making it critical for government to double food production and intensify its distribution to feed more people. Biotechnology in agriculture offers an attractive opportunity in addressing current and future food challenges. In South Africa, effective biotechnology policy will help in tackling pressing global problems: food security, health, water, climate change and energy. Its application will contribute to the Food Security and Nutrition Policy, the Industrial Policy Action Plan (IPAP) and the National Development Plan, all aimed at a food secure South Africa. While biotechnology has transformed livelihoods around the world, its use in agriculture has been misunderstood owing to one of its much publicised tools, genetically modified (GM) crops. Since adoption in the 1990s, GM crops have improved agricultural sustainability by increasing yields, improving farmers’ income, creating jobs and reducing the environmental footprint of food production. In many parts of the world, including developing countries, farmers are choosing GM crops as part of their normal farming practices. This type of crop is now the fastest adopted crop technology in the history of modern agriculture. South African agriculture will need to be more productive and sustainable to keep pace with the increasing demand for food and other products from the land. Compounding this challenge is the need for farmers to keep up with the demand while dealing with climate change and limited
resources such as land, water, energy and increasingly expensive inputs. Trade in agricultural commodities is heavily reliant on hard working farmers. Yet many of the small scale farmers are trapped in a cycle of poverty due to lack of resources, new technologies and guaranteed markets for their produce. Since inception in 1999, AfricaBio has provided technical support to more than 3 200 small scale farmers, community leaders and households in rural communities to produce more and better quality crops, conserve water and soil by using biotechnology tools.
demonstrated the benefits of agricultural biotechnology in protecting crops, increasing yields and generating income for the farmers. AfricaBio is an independent, non-profit biotechnology stakeholder’s association that provides accurate information and creates awareness, understanding as well as knowledge on biotechnology and biosafety in South Africa and the African region.
CEO Dr Obokoh
‘south african agriculture will need to be more productive and sustainable to keep pace with the increasing demand for food.’ In addition, the organisation has trained more than 195 extension officers, 329 international delegates, 95 decision makers and 105 biotechnology communicators in South Africa and the region. For the past six years, AfricaBio, working with national and international partners, has introduced emerging farmers in Gauteng to the GM insectresistant maize (Bt-maize). The project, supported by the Gauteng Department of Agriculture and Rural Development (GDARD), has
Contact Details: Nompumelelo H. Obokoh, PhD - Cantab, Pr.Sci. Nat. Tel: +27 12 844 0126 Fax: +27 86 619 9399 Website: www.africabio.com
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The Lonely Road Foundation assists with the initiation of micro-enterprises that produce essential and utilitarian products for the community and provides income, jobs and food for the children.
profile - THE LONELY ROAD FOUNDATION
Bringing hope The Lonely Road Foundation is a development charity that aims to bring life, hope and opportunity to orphaned and vulnerable children in rural and underprivileged communities in South Africa.
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he Lonely Road Foundation exists to support orphaned and vulnerable children. It does so by partnering with key community members and organisations, thereby creating a network of resources and a deep sense of ownership and responsibility for the projects within each community. It uses a community-based response model that focuses on developing support systems from within communities, and it aims to enable and empower community members to address and resolve their own
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profile - THE LONELY ROAD FOUNDATION
Top and Bottom: The foundation has adopted a two-pronged approach by creating community-based care and community enterprise models.
challenges. The solutions it develops are constantly evolving and growing, based on the needs identified, as well as the outcomes achieved.
tanks, to ensure a more reliable source of water.
funding model The Lonely Road Foundation relies on donations from individuals, foundations, endowments, trusts, agencies and companies for its funding. The most common approach has been the co-funded model, in which the funder pays a portion and the foundation covers certain operational aspects. This is the death-knell of all NGOs, and a funder should consider the negative impact of the burden of operational costs on the organisation. The majority of its costs are for transport and staff wages, which allow it to operate in remote regions. A major funder, the Nedbank Foundation, provides operational costs for specific projects, and fundraising drives are held for other activities. At the 2014 financial year end, the board approved a transparent income and expenditure statement and balance sheet to be published on the website.
The journey so far The foundation has adopted a twopronged approach by creating community-based care and community enterprise models. Both models are deeply entrenched in developing the community’s capacity, by providing training, start-up capital and facilitation functions. It offers support to and within the community by setting up drop-in centres: an environment that meets a child’s basic human needs, and works to ensure his or her healthy growth, development and well-being for a bright and sustainable future. The centres are a safe haven for the kids. Each drop-in centre endeavours to provide the following: a daily cooked meal for every child after school; assistance for the children who need to wash their school uniforms; homework assistance; access to psychosocial care from trained practitioners; a safe space to stay and play or be with friends each afternoon after school; regular home visits from caregivers to each child’s home (a ‘reverse drop-in’); assistance for children when applying for identity documents with the Department of Home Affairs; and assistance with clinic visits when necessary
Facts and figures
Community and drop-in centre development The Lonely Road foundation also has a number of other projects focused on sustainability. An example is the community enterprise development projects, which assist with the initiation of micro-enterprises that produce essential and utilitarian products for the community and provides income, jobs and food for the children. Another project involves drives with the Department of Home Affairs to register all of the children at the centres – as well as any other community members – for identity documents and apply for government support grants. The foundation regularly campaigns to collect school uniforms, groceries, toiletries, toys, books and blankets, and holds fun days to support creative and social expression. It hosts training programmes to equip
caregivers to provide support to the children, and organises the planting and maintaining of food gardens at each of the centres. In this regard, it has worked closely with JoJo Tanks, which supplies rainwater harvesting
In June 2013, The Lonely Road Foundation had a total of 2 875 registered children attending 15 drop-in centres in the community of Ga-Dikgale, Limpopo. It currently supports a further 600 orphaned and vulnerable children in Lokaleng, North West Province. Of the children registered, it has on its records a total of almost 40 child-headed households and over 370 grandmother-headed households in Ga-Dikgale alone. At present, the foundation’s beneficiaries are 100% black and approximately 51% female. It is a registered non-profit organisation and public benefit organisation, and as such, it offers benefits to corporates, including Broad-based BEE points and tax exemption. As a standard practice, any funds received by the foundation are used for a combination of purposes. There are administrative costs and salaries to full-time employees which must be paid, but the vast majority of the funding received is for specific projects.
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Providing weather and climate information towards sustainable socio-economic development
Drought, flooding, hail, severe wind, extreme heat and cold are weather conditions that can lead to loss of life and property, therefore impacting on the sustainable livelihoods of those affected.
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he agricultural sector is one of the most weather- and climate-sensitive sectors in South Africa and therefore, reliable accurate information is required for planting, fertilizing and harvesting times. Over the past few years, South Africa experienced several incidences of erratic and severe weather, which impact negatively on the socio-economic development in the country. The global climate change phenomenon is increasingly influencing the weather of all countries. These include: erratic weather patterns, lack of normal rainfall and high-intensity flooding. All these severe conditions can lead to economic misery, not only amongst emerging and subsistence farmers, but also in the commercial agricultural sector. “During normal season cycles, droughts and floods are inevitable, but the increase in severe weather continues to create more and larger weather and climate disasters than ever before. The South African Weather Service (SAWS) is geared to align national priorities aimed at addressing emerging climate-related challenges.� – Dr Linda Makuleni: Chief Executive Officer: South African Weather Service.
SAWS is the authoritative voice for weather and climate warnings in South Africa. Through its technologically advanced weather observations network, supported by scientific and computing capabilities, SAWS provides relevant weather and climate-related information as well as advice. Apart from issuing daily weather forecasts on radio, television, www.weathersa.co.za, other websites, the print media and the Twitter social media platform, SAWS also provides longer term, seasonal forecasts, covering the season at hand. The seasonal forecast is updated on a monthly basis and published on the website www.weathersa.co.za. Seasonal forecasts are longer-term predictions covering larger climate areas. The use of seasonal predictions can assist farmers to plan for the season at hand. On a quarterly basis, SAWS provides information to the National Agro-meteorological Committee, from where an agricultural outlook is prepared and disseminated to agricultural extension officers in the field.
CONTACT DETAILS: website: www.weathersa.co.za | Tel: 012 367 6000 | weatherline: 083 123 0500 | sms line *120*555# Follow us on Twitter: @SAWeatherServic
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GIVING THE COMMUNITY
WINGS TO FLY At South African Airways, uplifting others is part of who we are. We know that we are who we are because of the communities that sustain us – and we consider it a privilege to be able to give something back. Instead of handing out donations, our extensive range of CSI initiatives has been designed to create influential platforms for the upliftment of those who previously were denied opportunities to soar. We focus on addressing critical aviation skills shortages and creating employment opportunities within our industry – working towards a vision of making South Africa a better place for all.
VULINDLELA: OPENING THE WAY FOR GREATNESS
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As the national carrier we believe our success is intrinsically linked to the triumph of young South Africans and our communities. As a world-class aviation company, SAA is proud to open up opportunities to the next generation of aviators.
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Our Vulindlela Aviation Awareness Programme sends teams of experienced SAA pilots, cabin crew and aircraft technicians to disadvantaged communities across the country where they encourage and inspire young mathematics and science learners to pursue careers as pilots, engineers and technicians.
Th to
The Vulindlela Boeing Partnership is another way we inspire the youth to take to the skies. We have sourced and converted a custom-made container to resemble a Boeing 737-800. Fully equipped with a flight deck and seats, this aircraft replica provides a real sense of what an in-flight experience is like. We are also a proud supporter of Take a Girl Child to Work Day, an annual event which introduces Grades 10 – 12 learners to the real working environment. In order to reach out to young girls from all areas and backgrounds, we fly them in from all provinces and will continue to do so in future.
A BETTER WORLD, BY THE BOOK A nation of readers has a real chance of becoming truly great. That’s why SAA is committed to driving literacy education in South Africa. Our Mandela Day Library initiative, in partnership with the Nelson Mandela Centre of Memory, has seen the conversion of many container libraries into fully functional resource centres for schools in need.
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To date, we have donated libraries to disadvantaged schools in the Eastern Cape, KZN and Limpopo, with more to follow in rural schools countrywide. We also support Breadline Africa’s efforts to provide on going teacher training for library resource management at these schools. To enable them to attend training sessions every year, we fly in from all over the country, teachers involved with the Mandela Day library project.
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WHERE WORLD-CLASS AVIATORS ARE BORN Operating from OR Tambo International Airport in Johannesburg, SAA Technical Centre delivers high-quality maintenance, repair and overhaul services to South Africa, our continent and the world. As one of the most respected accredited training facilities in Africa, the Centre also empowers and uplifts the community through a range of apprentice training programmes. Every year, apprentice learners participate in training programmes that include theory, practical and hands-on training - resulting in numerous qualified and proud graduates in 11 aviation-related trades. These programmes are facilitated by highly qualified and experienced Senior Instructors, each a specialist in their field. Courses are performance-based rather than time-bound, ensuring that each apprentice truly conquers the field they aim to work in.
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At SAA, we tick every box as our way of conducting business. As the country’s national carrier, we are inspired to make a real difference to the people who look up to us.
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There are many examples of how we roll up our sleeves as a company in order to make a real difference:
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• Giving Back is our community outreach campaign where staff donate their time, expertise, clothing, food and blankets to those who are less fortunate and are in need of these. • Voyager, our frequent flyer rewards programme, has joined hands with the Reach for a Dream Foundation. We allow and encourage Voyager members to donate their Voyager miles to the Foundation in order to provide air transport assistance to children who have been diagnosed with life-threatening illnesses who must receive treatment elsewhere. • We also do our best to sponsor airline tickets in special cases where patients need to travel to receive emergency medical assistance, but cannot afford the airfares. But for us as a company, the real CSI goes beyond these projects and initiatives. It lives in the hearts of our people. After all, to do good things you must be good at heart – and that is a quality we at SAA strive for in everything we do.
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For more information about CSI initiatives at South African Airways, visit www.flysaa.com To apply for an apprenticeship at the SAA Technical Centre, please contact (011) 978 3935.
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Dube TradePort, home to King Shaka International Airport, it is located 30km north of the Durban CBD in the suburb of La Mercy. Recently a growing number of informal settlements have sprouted in the area surrounding the airport.; Pholani and Lungelani are among the largest in the La Mercy area. People in these informal settlements are faced with many challenges, such as poor quality of life, unemployment and a high crime rate. Working with such communities, you need a clear understanding of your own focus areas, but at the same time, you need to have an open mind so that you are able to appreciate the unique situation that each community presents. The focus areas in the case of Dube TradePort’s CSI programme are environmental awareness, education and social economic stimulation. In partnership with the communities themselves, Dube TradePort was able to identify several key issues that aligned with its own CSI objectives, for example, the lack of basic municipal services such as refuse removal, which resulted in heaps of litter strewn carelessly in the narrow pathways lining the shacks, harbouring vermin and disease. This desperate situation struck the CSI team as an issue that required their immediate attention.
Food for Recyclables In tackling this issue, Dube TradePort sought a solution and identified that one of its operations, Dube AgriZone, was producing excess vegetables, which included tomatoes, cucumbers ,and yellow and red peppers. Marrying this excess produce with the problem of strewn litter became an innovative project, and Food for Recyclables was born. Local schools became the collection and distribution points and the programme enlisted learners, aged six to 15 years old, as the agents of change. The programme sought to change the way learners viewed litter in their
Innovation
community - from just useless rubbish, which they had become blind to, to seeing it as something of value. At the launch of Food for Recyclables, the CSI leader went on stage and asked the learners which item he was holding would they pick up if they ran across it on their path to school. In a resounding chorus, the learners responded the money. He proceeded to ask them to imagine a world where they could buy a variety of vegetables in exchange for the litter that they stepped over every day on their way to school. They were curious, and liked the prospect that every Friday, Dube TradePort would come to their school and open a shop where the only currency was recyclables the students had collected. A year after running the first pilot programme in Trubel and La Mercy Primary respectively, the programme has cleaned and recycled over 50 tonnes of recyclables from informal settlements, and distributed over R100 000 in fresh produce. Now the programme has incorporated two more schools, benefiting over a 1 000 families.
fair trade Dube TradePort in KwaZulu-Natal has launched a CSI initiative that seeks creative ideas and community involvement to respond to social challenges. By Saxen van Coller, CEO of Dube TradePort
Fostering an entrepreneurial spirit The intention behind the Food for Recyclables project is to create a bartering system between learners in disadvantaged schools and Dube TradePort’s CSI programme. The aims of the project are to help to supplement the nutritional intake of local communities; to foster an entrepreneurial spirit among learners, as they are able to resell the produce; and to give learners an incentive to clean their own communities, which previously have always had waste management issues. This gives them a sense of pride, to be able to contribute towards sustaining their family. The project nurtures a strong work ethic and provides a gainful extramural activity. Additionally, it helps Dube TradePort to use the recycling of the collected material to offset its own carbon footprint. Dube TradePort Corporation has in place a comprehensive and long-running corporate social investment programme as a means of supporting the upliftment of communities in areas surrounding the Dube TradePort precinct. It has devoted a significant amount of the total project cost to a Dube TradePort local socio-economic impact programme.
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LEARNERS HAVE BENEFITED FROM OUR CSI PROGRAMME SOLAR INSTALLATIONS
BURSARIES AWARDED THIS YEAR
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SCHOOLS CURRENTLY ASSISTED
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IN SCHOOL UNIFORMS DISTRIBUTED
3000 KWH
= R3500 SAVED PER MONTH ALLOWING SAVINGS TO BE RE-DIRECTED TO
EDUCATIONAL NEEDS RAINWATER HARVESTING
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= 40 000L SAVED P.A.
Poverty and under-development prevent our people from realising their true economic potential. At Dube TradePort, we aim to develop, nurture and sustain that potential through a long-running Corporate Social Investment Programme that supports the upliftment of local communities. www.dubetradeport.co.za
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PROFILE - WOZA MOYA
WOZA MOYA (meaning ‘Come, Holy Spirit’), now almost 10 years old, started off as the income-generating project of the Hillcrest Aids Centre Trust, with a few women housed in a metal shipping container producing beaded Aids ribbons. Today, the craftroom is used by a different project every day – ranging from sewing, crochet, pottery and an angel-making group to fabric painters and quilters. Run by 300 crafters, it is creative sustainability at its best: Woza Moya helps those in need to regain hope and dignity by getting them to use their creativity to earn an income. The programme came about as a response to providing recovering HIV/ Aids patients with a sustainable livelihood. The trust was, at the time, providing home-based care to about 20 patients from KwaNyuswa, Shongweni, Molweni and Inchanga. In recovery, the patients were looked after within the feeding scheme run by the Methodist and Anglican churches. As a short-term measure, it was necessary to look for an innovative way of putting food on the table and helping the community to generate income. Woza Moya was born, with the help of seed funding from German donor GAA. It is led by fine artist and art teacher Paula Thomson.
FUNDING FOR WOZA MOYA From the beginning, Woza Moya was set to operate as a business. This would provide structure and education to the crafters in how their products were manufactured, priced and sold. As GAA withdrew its funding, the funding scaled down over the next two years, which prompted further ideas for sustaining the business through diverse offerings. ‘The main aim’, says Thomson, ‘was to sell the beaded crafts at an accepted premium price, with the maximum amount going back to the crafter. This still continues to be one of the goals of the projects.’
BUSINESS MODEL Woza Moya management conducts the business development on the beaders’ behalf and secures large orders. The beaders set the pricing on orders. It is possible to secure large orders due to the strength of the huge crafter base and the quick turnaround time. Thomson enthuses on the dedication of the beaders: ‘We have just completed a 40 000 bangle order for the ZAZI campaign, where we made the bangles in a week. No other organisation could do that.’
CELEBRATING TEN YEARS OF WOZA MOYA What started as a humble effort to meet the needs of HIV/Aids patients in rural KwaZulu-Natal has now blossomed into a fully fledged NGO. By Nazareen Ebrahim
The project has about 300 registered crafters, with 160 bead workers. Thomson explains that the core team assists with product design and tries to help every crafter to develop a best-seller which brings them income. The necklace or product is named after the crafter, and they become responsible for the production and quality control. Crafters are inspired to experiment with shape, mix of colours and appealing aesthetics. Woza Moya also works with The Thursday Beaders, who are traditional bead workers from the Valley of a Thousand Hills in KwaZulu-Natal. They are not registered with Woza Moya, but the project buys all traditional beadwork from them, and shares large orders and overflow work with them. The project has been growing steadily, but was severely impacted by the global recession, as many buyers scaled down or stopped ordering, and turnover decreased. However, Thomson says: ‘Once we realised what was happening, we diversified into other fields and also started making large-scale commissions. One of our main aims is to hunt for work. We do not wait for work to come to us. We also never say no to any order – even if the deadline is impossible, we make it happen.’
KEY SUCCESSES Since its inception, Woza Moya has inspired innovative crafts and works of art, and improved the lives of the community affected by HIV/Aids.
One of the project’s greatest achievements is the ‘Little Traveller’, a small, beaded doll that is sold worldwide and produced in large quantities via online orders. Another key success was the group’s first commissioned artwork, which is a beaded map of Africa that now hangs in the Moses Mabhida Stadium in Durban. Woza Moya has also gained global exposure through the travelling Our Dreams for Africa Chair, a magnificent hand-beaded chair which was created to collect dreams from around Africa. The chair has been flown to New York twice and is now on a European tour collecting dreams in Holland; it will then be travelling to Germany. Currently the group is showcasing its work in an exhibition at the KZNSA Gallery in Durban, funded by the Department of Arts and Culture.
LOOKING AHEAD Woza Moya is forging ahead with ensuring that it ‘gets as many hands on one product as possible, so that the whole chain of crafters benefit,’ as Thomson puts it. There are also hopes that the travels of the Our Dreams for Africa Chair will raise enough money to expand the craft room and studio. Thomson is characteristically optimistic: ‘We would love to expand our sewing department – we want to offer more sewing training and have orders to grow the sewing department, but need the space for this development.’
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profile: MASDT
innovation on the road MASDT is coming up with innovative solutions for emerging farmers with its new Mobile Agri Lab. By Nazareen Ebrahim
The Mobile Agri Skills Development and Training (MASDT) organisation was established in 2005, with training being its core function. The Mpumalanga-based MASDT converted to a non-profit organisation towards the end of 2006. This move also inspired the change to MASDT becoming a fullservice centre for small- and medium-sized agricultural entrepreneurs. MASDT currently runs projects across Mpumalanga, KwaZuluNatal, Limpopo and the North West, providing business support, agricultural planning, skills development, mentorship, mechanisation support and supply of agricultural inputs. Awarded the Small Enterprise Development Agency (SEDA’s ) Best Performing Incubator of the Year in 2012, MASDT hosts three agricultural incubators and manages a private mobile FET college. The incubator centres provide a support and development forum to emerging farmers in food and animal production, and over 40 emerging tobacco production farmers. These initiatives are mostly funded by the SEDA Technology Programme, a member of the Department of Trade and Industry (DTI), Umzinyathi District Municipality and British American Tobacco South Africa (BATSA).
to the field where it is needed most.’ Some of the technical services that the Mobile Lab will provide include soil, water, plant and leaf testing. These are carried out according to SABS and SANAS standards. Training will also be given to the farmers’ study groups, while Google Street View positioning and mapping, and a range of tools for repairing and maintaining infrastructure on farms, will also be provided. Sporting two high-definition television screens on the outside, the truck is able to relay information observers and groups outside. The lab promotes environmental support through solar-powered laboratory equipment and does not make use of air conditioning.
‘This mobile lab will strengthen MASDT and accelerate the growth of emerging farmers into commercial producers.’
Mobile Agri Lab As part of MASDT’s ongoing commitment to innovation, it launched the Mobile Agri Lab in August, in conjunction with SEDA, which contributed R3 million to the initiative. MASDT chairperson Matthews Phosa said at the launch: ‘This revolutionary mobile lab, with its cutting-edge technology, will strengthen MASDT and accelerate the growth of emerging farmers into commercial producers.’ MASDT’s Mobile Agri Lab is a 20m-long Scania truck, custom-built as an agricultural laboratory, with training facilities and hightech electronic equipment, to provide services to rural areas. Speaking at the launch, MASDT managing director Lynette Bezuidenhout explained: ‘Fixed facilities that provide highly technical services are expensive, and geographically distant from rural communities, many of which are MASDT’s clients and have long turnaround times, particularly if samples must be posted or couriered. By having a mobile facility, MASDT can bring the appropriate technology
is actively helping businesses to gain access to local and foreign markets. We firmly believe in providing end-to-end support for incubatees.’ The Mobile Agri Lab will also be at the disposal of other farming groups, including commercial farmers, on a cost-recovery basis. MASDT would like to extend the use of the mobile laboratory as a training vehicle that can visit rural schools, and raise awareness and interest among students on the skills and technologies involved in agriculture. This is in a bid to encourage youth to see agriculture as a vibrant, technologically challenging and interesting career option, and not as an unskilled sector.
Funding and business model MASDT is receiving funds from SEDA for the operation of the virtual agricultural incubator. The sustainability of the facility will be ensured by the organisation’s current service offering to clients, which will expand to include the mobile lab services at a nominal fee. SEDA spokesperson Lusapho Njenge spoke at the launch about the importance of incubators. ‘There is a push by government to create more incubators as a response to addressing the mortality rate of small businesses,’ he said. ‘Incubators really create viable and sustainable small businesses. SEDA
The road ahead
A number of positive outcomes are expected for emerging farmers working in partnership with MASDT and benefiting from the technology that the Mobile Agri Lab offers. These outcomes include improved knowledge of natural resources, leading to better decisionmaking and planning; enhanced diagnosis of factors affecting crops or livestock, resulting in reduced losses due to disease; and on-site repairs to a range of farm equipment, which will save time and expenses for emerging farmers who otherwise would have had to transport equipment such as ploughs to town. This also would have delayed key agricultural activities, such as land preparation, which would have affected yields at harvest time. The Mobile Agri Lab hopes to attract more funders in the near future, to expand the mobile lab to include a training centre. As Phosa so aptly put it, it will also ‘ensure a more serious contribution towards agrarian revolutionary skills. This country has a lot of land, but very little in the way of skills.’
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OUR DAMS, OUR HERITAGE One of the imperatives for economic growth is infrastructure development and in this regard, the National Water Resources Infrastructure Branch of the Department of Water Affairs (DWA) has already taken huge strides in developing our water resources infrastructure. The National Water Resources Infrastructure Branch of the Department is responsible for the provision of bulk raw water through world-class water resources infrastructure towards sustainable socio-economic development. Existing infrastructure comprises mainly of dams, canals, pumping stations, pipelines, tunnels and measuring facilities. In order to manage these assets, upgrading and capital development programmes are designed and implemented. The Dam Safety Rehabilitation Programme (DSRP) was initiated in 2005 to address dam safety related deficiencies at Department of Water Affairs’ dams. The Department owns 316 dams which are located countrywide. To date, 35 dams have been successfully rehabilitated. A further five dams are currently undergoing construction (Elandsdrift Weir, Cata Dam and Mnyameni Dam in the Eastern Cape, Stompdrift Dam in the Western Cape and Kalkfontein Dam in the Free State). A number of other dams are in the design phase. Most of these designs are undertaken in-house utilising young engineers under the supervision of a mentor. The DSRP expenditure to date is in excess of R1,7-billion, spent on consulting engineering services and construction work.
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The rehabilitation work done greatly influences other sectors, like the energy sector. Rehabilitation of the Vlakfontein Canal, a link in the supply of raw water to Eskom and Sasol, is progressing well and is estimated to cost R100-million per annum over the next five to seven years. The Department owns 54 irrigation schemes. The Department has recently embarked on a programme to rehabilitate some of these schemes. The Gamtoos irrigation scheme has been rehabilitated successfully resulting in an improved water security both for the irrigators and Nelson Mandela Metro in Port Elizabeth, who gets some of its water through the canal system. Rehabilitation work on Mooi river scheme and Lindleyspoort scheme in the North West Province, Quamata and Ncora schemes in the Eastern Cape and the Nchelele scheme in Limpopo are well underway. The construction of an additional balancing dam on the Orange-Riet canals is scheduled for completion later this year. It will enable the inclusion of a number of emerging farmers in the irrigation sector. The rehabilitation work on all dams and canals has created numerous job opportunities. In all contracts it is prescribed that local labour must be used where possible in order to give the maximum benefit as far as job creation is concerned to the local area, without impacting on local farmers and businesses.
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WE HAVE WHAT IT TAKES TO GIVE BACK. More than R40 million invested to build Science Centres in Sebokeng, Newcastle and Saldanha. In a country where the majority was once forcibly limited to being “hewers of wood and drawers of water�, science was for a long time out of bounds. We at ArcelorMittal South Africa recognise this need and we have invested more than R40 million in Science Centres in three underprivileged communities. This is part of our contribution to meeting the national skills shortage challenge while also securing a constant stream of skilled employees into our business. And yet more evidence that we have what it takes to give back. We are ArcelorMittal South Africa.
transforming tomorrow
Go to www.arcelormittal.com/southafrica to find out more.
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Mngcunube Development
M
ngcunube has been operating since 1980, mostly in the Eastern Cape, Lesotho and Free State. We are motivated by the potential for the rural poor to use their assets of land and livestock to sustain and improve their food and economic security. At present, our main activities involve implementing CWP programmes in the Free State as well as in livestock and micro-enterprise development and homestead gardens in the Eastern Cape. Livestock: In recent years in our Eastern Cape projects, over 20 000 livestock owners have participated voluntarily in improving animal health, thus reducing death rates and improving wool quality and quantity. Independent analysis in one of the areas showed that the net effect of this is that potential annual gross income increased from R416 per average participating farmer to R18 036. Farmers pay for the medicines they use on their animals and the average cost per farmer
to achieve this is R735. We have developed and trained 28 successful local micro enterprises to deliver take-over projects. We call them VLPs (village link persons). In the Eastern Cape alone there are over 7 million sheep and 3 million cattle which indicate the scale of potential expantion. Once this situation has been established (after 2-3 years), farmers can and do consider the idea of selling some of their livestock to retain the original asset while selling the increase. This process is facilitated by Mngcunube.
on 3500 in the south east of the Free State. The logistical demands of organising and monitoring useful work and paying participants reliably and accurately, has been carried out flawlessly by Mngcunube. Other: We have a strong track record in community water development, commonage management, land reform beneficiary support and a range of consulting work and project management services.
Homestead Gardens: Through CWP, we have guided over 10 000 households in Lesotho, the Free State and the Eastern Cape, into building keyhole and trench gardens that promote food security at household level. CWP: We have worked with up to 10 000 participants though we are now focused
During school holidays village livestock sites give scholars a chance to help and learn hands on
Contact Details: Lyle Kew: 083 262 0943 - lyle@mngcunube.co.za Jack Blaker: 082 807 7805 - jack@mngcunube.co.za
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