INTERVIEW WITH PRIYA NAIDOO, GROUP EXECUTIVE,STRATEGY AT NEDBANK

INTERVIEW WITH PRIYA NAIDOO, GROUP EXECUTIVE,STRATEGY AT NEDBANK

The onset of COVID-19 and recent violent protests have accelerated the need for urgent action to kickstart the economy. The lack of progress in implementing structural reforms to boost economic growth have accelerated, not only unsustainable unemployment levels, but poverty and inequality too.

Urgent action is needed on growth-enhancing changes and reducing policy uncertainty to boost business and consumer confidence, investment, and growth and to reduce the impact the crisis has had on livelihoods. We need a repurposed economy that allows for shared value amongst all people in its society.

A collective effort with a clear focus on sustainable growth is required to achieve real transformation. We need to engage in practical and accessible initiatives from the government together with the private sector to improve the underlying investment environment and unlock greater job creation and faster economic growth. The country’s success is and should be everyone’s business as we are all integrated within society, so we all should care - Priya Naidoo

HOW DO WE GO ABOUT REPURPOSING THE ECONOMY?

The implementation of structural economic reform remains key to South Africa’s longer-term prospects. Now, more than ever, individual South Africans, business and labour need to work together to help the government in overcoming the obstacles that lie ahead of us. The fundamentals need to be right - good governance and demonstrable leadership to address the country’s serious structural issues are necessary. Enabling more people to participate in economic activity and begin to improve their circumstances is key and one of the large untapped reservoirs of potential is the small business sector, which is held back by inherent challenges such as limited access to finance, erratic cash-flow and underdeveloped business skills. Banks are uniquely positioned to address some of these challenges and we can be part of repurposing the economy through funding and support of individuals and small enterprises

SOME EXAMPLES OF HOW NEDBANK IS DOING THIS INCLUDES:

• Pitch & Polish which is a free, nationwide entrepreneurial workshop and competition programme, sponsored by Nedbank, which focuses on building and refining Small Business owners’ skills to enable them to effectively pitch their businesses or ideas to potential investors;

• Simply BIZ. This is a platform for small business owners to engage and provides them with information, support, motivation, real-life advice and conversations that will help their businesses to succeed;

• Providing access to resources - including but not limited to - capital and financial services through, for example, sustainable finance options and Nedbank products such as Mobimoney, Avo and Stokvel accounts;

• Developing scarce and essential skills in society done through various means, including Unlocked.me, a youth platform launched in 2019. Through Nedbank Unlocked, Nedbank has supported youth with over 480 000 Smart CVs, improved youth employability by enabling youth to complete over 128 000 courses, as well as assisted over 73 000 learners with a combination of career guidance, university bursaries and National Student Aid Scheme (NSFAS) applications;

• Private sector and government collaboration - Youth Employment Scheme (YES) programme (born out of the CEO Initiative and officially launched in March 2018 by President Ramaphosa) as part of a collective effort to address the youth unemployment crisis facing our country, and internal initiatives such as the Enterprise and Supplier Development programmes.

WHY IS THIS IMPORTANT TO NEDBANK?

At Nedbank, we believe that our success depends on the degree to which we deliver value to society. Nedbank is uniquely positioned to play our part to help ensure that our economy works for every South African. We are therefore committed to transforming and advancing a national social compact to rebuild the economy, being a catalyst for inclusive growth and enhancing social cohesion in SA.

Our philosophy for purpose-led transformation is to transcend legislation to meet national interests while leveraging human, socioeconomic, financial and leadership capital components. We are also acutely aware of the critical role that financial institutions play in sustainable development through their funding and capital distributions.

And as a responsible business that is committed to playing our part in building a sustainable future for our country, we know that nothing is more urgent than giving our people hope for a better future – this is the key to creating successful societies.

HOW CAN WE ADDRESS THE COUNTRY’S CHRONIC UNEMPLOYMENT CRISIS?

South Africa’s unemployment rate was already high even before the Covid-19 pandemic, which itself resulted in the loss of an estimated three million more jobs. Covid-19 also put a spotlight on how youth are disproportionately affected by economic inactivity and unemployment. With the youth unemployment rate in South Africa during 2020 estimated at 55,75%, it is important for Nedbank to continue participating in initiatives that address this issue.

SOME OF THE INITIATIVES WE HAVE IMPLEMENTED AT NEDBANK THAT WE HOPE CAN GO A LONG WAY IN ADDRESSING THIS GROWING CONCERN ARE:

The YES programme – Nedbank first participated in the YES programme in 2019 by employing youth through various roles within Nedbank and partnering organisations. At the end of the 2019 programme, 591 of the recruits were permanently placed within Nedbank and its implementation partners. In 2021 we welcomed 1905 recruits onto the programme.

The jobs and partnerships that are created are sustainable, impact the community where the youth are based, and upskill the youth with required skill sets that enable them to find work in the job market once they have completed the 12-month programme.

Nedbank has also recently launched YouthX, a platform designed to enable youth potential by giving them access to resources and inspiration. This also supports the drive against youth unemployment by tackling the issue head-on through this platform and has partnered with some of SA’s most accomplished youth change-makers to give guidance and industry expertise.

HOW CAN WE PROVIDE FUNDING AND SUPPORT FOR INDIVIDUALS AND SMALL ENTERPRISES?

We firmly believe in empowering and supporting individuals and small business owners in our communities. In addition to examples mentioned there are numerous other innovative funding and support mechanisms that we have used within Nedbank.

Through our Enterprise and Supplier Development programme, we support organisations through a combination of business mentorship, business acumen, specialist training and personal coaching. One such company is Mila Services, a level 1 black-women-owned cleaning services business with a unique model that empowers qualifying staff members to become business owners. This has seen it grow from 22 employees to over 500 with over 10 franchises

We have also funded programmes through trusts such as The Nedbank Black Business Partners Legacy Trust, which was created to fund Nedbank’s commitment together with Old Mutual, WIPHOLD and Brimstone to leave a legacy as a result of the successful broad-based black economic empowerment transaction.

One such project funded through the Legacy Trust is the township economy revitalisation programme.

This public-private partnership between the Trust, Gauteng Department of Economic Development, Pick n Pay and local spaza shop owners is working to upgrade participating spaza stores to meet the needs of customers and communities, thereby helping to grow a new generation of modern retail entrepreneurs and boost economic revitalisation and job creation in townships.

Since it started, the programme has disbursed R20m to 15 supported spaza shops in Gauteng and the Western Cape. In turn, these small businesses have created 282 job opportunities for members of their surrounding communities.

HOW CAN WE EXPAND ACCESS TO FINANCIAL SERVICES?

There is a need for products that simplify access to financial services, and we believe that our long-term sustainability and success are contingent on the degree to which we deliver value to society. In this regard, our strategic focus is on delivering outstanding client experiences enabled through our technology foundations in a manner that delivers value to all our stakeholders.

We continue to focus on ensuring that our IT systems are stable and available, educating clients and staff regarding digital solutions and capabilities available to them, launching digital solutions such as Avo that makes life a little easier for South Africans.

Products like Mobimoney are also available to make banking affordable and accessible. Anyone with a valid SA ID number can open a Nedbank MobiMoney account on any mobile device in seconds without having to visit a branch or provide any supporting documents.

Our Stokvel account aimed at encouraging group savings within our communities is also available. Since its launch in April 2018, our Stokvel Account has attracted over 4 300 stokvel groups, with more than 182 000 members and deposits of R65-million.

PRIYA NAIDOO

KEY TAKEOUTS:

• Attention must be drawn to structural reforms to lay the foundation for sustainable, inclusive growth

• The Covid-19 pandemic has further exposed the wide economic and social disparities in SA, which require urgent attention

• Nedbank is committed to transforming and advancing a national social compact to rebuild the economy

• Empowering and supporting individuals and small business owners is one way to address unemployment in SA

• There is a need for financial products that simplify access to financial services and deliver value to our customers and society in general