Empowerment June 2025

Tlamelo Ntabeni

Busi Mavuso Monde Ndlovu Dr Mmboneni Muofhe

We stand for innovation, transformation and excellence

KXX is a dynamic, black-owned and managed audit firm, established through the strategic merger of three reputable practices. Since our inception, KXX has rapidly earned the trust of the private and public sector. Our comprehensive suite of services includes statutory audits, independent reviews, retirement fund audits, public sector audits, attorney’s trust audits and agreed-upon procedures. All tailored to meet the evolving demands of Africa’s diverse economic landscape.

What sets KXX apart is our unwavering commitment to excellence, demonstrated through:

Strategic innovation: leveraging artificial intelligence and data analytics to enhance audit quality and operational efficiency.

Transformational leadership: championing professional development for diverse talent while maintaining high ethical and technical standards.

Client-centric solutions: providing bespoke services to JSE-listed companies, small businesses and government entities.

With a talented team of 60 professionals, including 40 trainee accountants, KXX aims to build Africa’s most respected black-owned audit practice.

We are shaping the future of audit and assurance through technology, strategic partnerships and unwavering commitment to integrity. KXX stands at the intersection of tradition and innovation; empowering clients to navigate complexity and unlock sustainable growth continentwide.

For more information: 011 462 6269 www.kxx.co.za

SUPPLYING BULK WATER AND SANITATION SERVICES

Magalies Water is one of the eight water boards in South Africa mandated to provide bulk water and sanitation services. The board provides potable water to municipalities, mines and other private consumers within, but not limited to the North West, Limpopo and Gauteng provinces. Magalies Water is an organ of the state, reporting to the Minister of Water and Sanitation and currently stretches over the Pienaars and Crocodile Rivers, which are the two major catchment areas.

The board’s vision is to be the leading provider of quality water and sanitation services in Southern Africa. Its mission is to provide sustainable, safe and reliable quality bulk water, sanitation and other related services to Water Services Authorities and other users to positively impact the quality of life and economic growth for communities in its area of operation.

CREATING IMPACT YOU CAN MEASURE

Established in Durban in 1984, LDM has evolved into one of South Africa’s premier built environment consultancy firms. With over 40 years of traceable industry experience, our record reflects a steadfast commitment to service excellence, precision and professional integrity.

At LDM, we regard the built environment as more than our field of expertise; it is our passion. Our guiding philosophy, “Adding Value ... Beyond Measure”, informs every facet of our operations. For us, measurement transcends numbers; it embodies accuracy in planning, attention to detail and disciplined execution.

Our multidisciplinary capabilities position us to offer a broad range of professional services. From initial feasibility through to final commissioning and occupation, we deliver solutions aligned with the highest industry standards.

Our people distinguish us. We are proud of a team that not only delivers measurable outcomes, but also consistently upholds rigorous benchmarks of performance and accountability. As we continue to evolve and innovate, LDM remains committed to delivering purposeful, lasting value to our clients, partners and communities.

For more information: https://ldm.co.za/

PUBLISHED

BY

Picasso Headline,

A proud division of Arena Holdings (Pty) Ltd, Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 PO Box 12500, Mill Street, Cape Town, 8010 www.businessmediamags.co.za

EDITORIAL

Editor: Ryland Fisher

Content Manager: Raina Julies rainaj@picasso.co.za

Contributors: Marchelle Abrahams, Trevor Crighton, Cuma Dube, Vukani Magubane, Mpho Motsei, Monde Ndlovu, Tlamelo Ntabeni, Rodney Weidemann

Copy Editor: Brenda Bryden

Content Co-ordinator: Natasha Maneveldt

Online Editor: Stacey Visser vissers@businessmediamags.co.za

DESIGN

Head of Design: Jayne Macé-Ferguson

Senior Designer: Mfundo Archie Ndzo

Cover Images: [peopleimages12]/123rf.com Supplied

SALES

Project Manager: Jerome van der Merwe jeromem@picasso.co.za | + 27 21 4692485 +27 82 668 1496

Sales: Frank Simons

PRODUCTION

Production Editor: Shamiela Brenner

Advertising Co-ordinator: Johan Labuschagne

Subscriptions and Distribution: Fatima Dramat, fatimad@picasso.co.za

Printer: CTP Printers, Cape Town

MANAGEMENT

Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

WE CANNOT ALLOW TRANSFORMATION TO BE REVERSED

We live in a world where there has been a right-wing resurgence, putting transformation internationally at risk. The pushback against what is known as DEI (diversity, equity and inclusion) in the United States (US) under President Donald Trump has had ripple effects throughout the world, including South Africa, where 600 American companies operate, often using our country as their regional headquarters in Africa.

South Africa is the US’s largest trade partner in Africa, and we have, at best, an uncomfortable relationship with the administration in Washington since the new president was sworn in in January 2025, issuing executive order after executive order, including ones against South Africa. It also kicked out South Africa’s ambassador because of the critical comments he made against their president.

As American companies decide whether they must abide by their president’s directive to halt all DEI programmes, it is imperative for South Africans to remind them of the importance of DEI in our country, given our history of apartheid and colonial repression. Economic transformation is critical for the success of our country and our economy.

We must push back against the right-wing attack on economic transformation because that is what DEI is: it seeks to promote the fair treatment and full participation of all people, particularly groups that have historically been under-represented or discriminated against based on identity. This is a noble aim that should be supported, not suppressed. Our pushback is complicated by the strong historical relationship between our two countries. This debate surfaces quite strongly in this edition of Empowerment, but we also look at how we can grow the South African economy inclusively, the role of technology in transformation, how some women are breaking barriers in business, how businesses are empowering small, medium and micro enterprises and the youth, and the long-term bene ts of sustainable business practices on transformation, among others. We hope this publication will contribute to the important economic debates we must have in this country.

Ryland Fisher, Editor

Copyright: Picasso Headline. No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. EMPOWERMENT is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

Auditing the now. Empowering the next

With a commitment to excellence, innovation and transformation, KHUMALO XABA

is poised to become one of the top audit firms in the country

KXX JHB INC.

Merging Expertise, Multiplying Impact

A LEADING FORCE IN SOUTH AFRICA’S FINANCIAL ASSURANCE SECTOR

Khumalo Xaba Xulu (KXX) is a dynamic, black-owned and managed audit rm that has rapidly positioned itself as a trusted partner within South Africa’s audit sector. Formed through the strategic merger of KnM Chartered Accountants Inc., SM Xulu Inc., and Kopax Chartered Accountants Inc., KXX brings together deep expertise, diverse capabilities, and a shared commitment to professional excellence.

VISION AND MISSION

KXX envisions being a globally-recognised and trusted leader in assurance services.

Its mission is to deliver trusted, high-quality solutions that empower clients, navigate complexity, ensure compliance, and unlock long-term value through strategic partnerships.

CORE SERVICES

KXX provides an integrated suite of professional services across three core areas:

• Assurance Services

• Statutory audits

• Independent reviews

• Retirement fund audits

• Public sector audits

•Attorney’s trust audits

• Agreed-upon procedures

XULU

STRATEGIC GROWTH AND EXPANSION

Since its inception, KXX has successfully expanded its operations across ve provinces. The rm continues to grow its clients base and is actively pursuing expansion into key African markets.

LOOKING AHEAD

KXX is focused on sustainable growth and industry leadership. The rm aims to further extend its reach by securing listed clients and entering international markets, with a primary focus on the SADC region.

Its strategic goals include:

•Establishing a presence in all provinces in South Africa

• Expanding into nancial and mining clients including select African markets, with a primary focus on the SADC region

• Strengthening brand recognition across public and private sectors

•Growing within sectors where demand for audit services is high

•Becoming one of South Africa’s top six audit rms

These ambitions are underpinned by a clear roadmap, strong leadership, and a commitment to service excellence.

COMMITMENT TO EXCELLENCE AND INCLUSION

KXX is dedicated to building trust through transparent, ethical and high-quality service delivery. As a black-owned and managed rm, KXX plays a signi cant role in broadening access to the profession by creating meaningful opportunities and investing in future- t talent.

Its values guide the rm’s internal culture and client engagements:

• Leadership Excellence: Demonstrated professionalism and accountability

• Integrity: Upholding the highest standards of ethics and trust in all our actions

• Diversity and Inclusion: Promoting empowerment through equitable access and opportunity

• Digital Innovation: Embracing arti cial intelligence and automation to drive ef ciency and future readiness

• Growth Mindset: Fostering a culture of continuous learning, development, and adaptability.

BUILDING TRUST, DELIVERING VALUE

KXX Auditors Inc. is a new, forwardthinking audit firm that marks a significant milestone in South Africa’s auditing landscape. The merger of SM Xulu Inc, KnM Inc, and Kopax has united deep expertise, diverse capabilities, and a shared commitment to excellence. Our vision is to be a globally recognised and trusted leader in assurance services. We aim to provide long-lasting value to our

TRAILBLAZING

KXX is more than just an audit rm; it is a trailblazer in assurance services, committed to innovation, transformation, and excellence. With its strategic vision, diverse service offerings, and strong leadership, KXX is well-positioned to rede ne the landscape of professional services in South Africa and beyond.

clients through team’s togetherness, emphasizing a resilient mindset where we can work towards shared goals with a focus on collaboration, empowerment, and innovation. The firm is dedicated to continuous improvement, ensuring that its audits meet the highest standards, and consistently striving for excellence to build a strong reputation and attract top talent.

We offer a seamless blend of assurance capabilities—designed to assist our clients navigate complex challenges, meet regulatory expectations, and unlock long-term value. Every engagement is approached with precision, professionalism, and strategic insight—because at KXX, we know that trusted numbers drive confident decisions. We bring clarity, confidence, and a new energy to the market—positioning our clients not just to comply, but to thrive in their respective fields.

“We didn’t just merge—we disrupted. KXX Auditors Inc. is here to shake up the market, and redefine what assurance services should look like in the digital age.”

Sandile Xulu CA(SA), RA CEO of KXX Auditors JHB Inc.

For more information: 011 462 6269 www.kxx.co.za

SEVEN YEARS STRONG

Nedbank’s bold commitment to real transformation

As Nedbank marks seven years as a Level 1 B-BBEE contributor, executive head of transformation, KERSHINI GOVENDER , reflects on the group’s unwavering pursuit of inclusive, meaningful empowerment

Nedbank remains committed to advancing purpose-led transformation, recognising it’s a vital imperative to driving national empowerment. Beyond addressing historical socioeconomic disparities we embrace a broader vision of sustainable, inclusive growth that bene ts all South Africans. As a key player in the banking sector, we remain dedicated to fostering economic empowerment and promoting inclusivity.

As stated in Nedbank’s 2024 Society Report: “The nancial sector has a critical role to play in driving economic growth and development, particularly in emerging markets. The choices we make today, or choose not to make, shape the world of tomorrow.”

EMBEDDING TRANSFORMATION BEYOND COMPLIANCE

Nedbank successfully drives transformation by embracing the principles of meaningful change and transcending legislation to build a more equitable society. Through our human-centred leadership philosophy, change starts within, enabling leadership to catalyse systemic change in the bank and broader sectors. Transformation is an integral part of our culture and values. Our approach stems not only from a moral imperative to do good, but also from a clear understanding that economic growth and transformation are inextricably linked. We seek to advance purpose-led transformation that transcends legislation to build an equitable society while growing our business and supporting the national agenda.

ADVANCING TRANSFORMATION THROUGH A STRATEGIC AND HOLISTIC APPROACH

In 2024, Nedbank retained its Level 1 Broad-Based Black Economic Empowerment (B-BBEE) contributor status for the seventh consecutive year since the promulgation of the Amended Financial Sector Code (FSC) in 2017. Our “7 in 7” landmark achievement speaks to Nedbank’s purpose-led approach to transformation and signals our deep commitment and consistent progress. A strategic and holistic approach is a business necessity to remain relevant and effective in an evolving landscape. Nedbank is committed to shaping South Africa’s future by actively investing in youth development through bursaries, student accommodation, Youth Empowerment Service (YES) and nancial literacy initiatives. We empower black-owned and black-women-owned businesses with the skills and nancial resources to thrive, creating jobs and driving sustainable economic growth. This underscores the key distinction between wealth redistribution and wealth creation, which is critical for building social cohesion and sustainable economic growth.

REFLECTING ON SEVEN YEARS OF PURPOSE-LED TRANSFORMATION

As we celebrate this “7 in 7” milestone, I draw inspiration from the “power of the divine number 7” and would like to highlight our 7 key achievements over the past 7 years:

• R6.4 billion invested in skills training, of which R5 billion was allocated to black people, including R3 billion speci cally for black women.

• R130 billion spent on local procurement, of which R39 billion was directed to black-owned suppliers, including R26 billion allocated to black-women-owned suppliers.

• R175-million enterprise development grant funding bene tting over 5 900 businesses, creating over 3 340 jobs.

• 2 150 jobs created through the green economy strategy, while developing 815 enterprises and 1 738 skills.

• R174-million consumer education spend reaching approximately 100 million people.

• R5.7-billion of student accommodation funding exposure, with 47 963 beds funded and 1 389 external bursaries awarded, amounting to R137-million.

• More than 13 500 YES workplace experience opportunities provided with 63 per cent female candidates and 71 per cent with dependents.

RENEWING OUR COMMITMENT TO PROGRESSING TRANSFORMATION

Nedbank acknowledges the transformation progress achieved over the past seven years, and we remain receptive and responsive on our transformation journey.

As a purpose-led organisation, legislation functions as a minimum standard to guide our efforts. Just as the infamous “seven-year itch” marks a moment of reckoning or reconnection for many partnerships, so too does our latest seven year B-BBEE Level 1 achievement spark a renewed restlessness within us at Nedbank. We remain committed to being a force for positive change in our industry and country, and we acknowledge the work ahead to ensure that we help build a better, stronger and more resilient future for all.

SCAN THIS QR CODE TO GO TO THE NEDBANK WEBSITE

Kershini Govender

RECLAIMING RELEVANCE THE BMF’S BOLD TURN TOWARDS ENTREPRENEURIAL LEADERSHIP

MPHO MOTSEI, president of the Black Management Forum, outlines how entrepreneurial leadership and strategic partnerships are reshaping the organisation’s future and driving inclusive economic transformation in South Africa

There comes a time in the life of every organisation when the path forward demands not just change, but courage. For the Black Management Forum (BMF), that moment is now.

When I assumed of ce in November 2024, the organisation was facing deep-rooted challenges: disengaged members, strained stakeholder relationships and the growing question, “Is the BMF still relevant?”, echoed in boardrooms and social circles.

My answer then, and now, is clear: relevance is not given; it must be earned, constantly Earning it demands leadership that is bold, agile and entrepreneurial.

ENTREPRENEURIAL LEADERSHIP: A PATH TO RENEWAL

Entrepreneurial leadership is not just a trending phrase; it is the ability to navigate uncertainty, unlock opportunities within challenges and deliver value that transcends traditional business outcomes.

long recognised entrepreneurship as a driver of innovation, a reducer of inequality and a key generator of jobs.

Closer to home, the numbers af rm this. According to Statistics South Africa, small, medium and micro enterprises (SMMEs) contribute nearly 39 per cent of the country’s gross domestic product and account for over 60 per cent of private sector employment. These businesses are a cornerstone of inclusive economic growth.

Moreover, the National Development Plan (NDP) 2030 recognises SMMEs as critical to resolving our nation’s core challenges, unemployment and inequality. Entrepreneurial leadership, then, is not only relevant; it is aligned with our national development vision.

PIVOTING STRATEGY THROUGH PARTNERSHIPS

With this in mind, the BMF is repositioning itself to promote entrepreneurship not just as an economic lever, but also as a core leadership imperative.

Our partnerships with organisations such as SourceFin and Cash Converters re ect this new focus, offering nancial and developmental support to SMMEs across South Africa.

These collaborations are no accident. They are part of a deliberate strategy to place the BMF at the forefront of socioeconomic change, ensuring black professionals are not only ready for corporate leadership, but equally empowered to build businesses that create jobs and build wealth.

SHAPING A NEW LEGACY

Entrepreneurial leadership is about imagining a future beyond the status quo. It means building enterprises that not only generate value, but also respond to societal needs, align with policy priorities and inspire inclusive growth.

My vision is clear: for the BMF to be recognised not only for its historic role in advocacy, but also for its measurable impact, nurturing a generation of members who are business-builders and change-makers is vital.

When entrepreneurial thinking, strategic partnerships and purpose-driven leadership converge, organisations like the BMF can reclaim and rede ne their relevance in a changing world.

A CALL TO ACTION

Entrepreneurial leadership is not theoretical. It is a proven model for organisational renewal and driving transformation across society.

The future belongs to those who innovate, collaborate and lead with courage. At the BMF, we are ready to walk that path – and we invite all our members, partners and stakeholders to join us in building a legacy of transformation and inclusive growth for South Africa.

THE BMF IS REPOSITIONING ITSELF TO PROMOTE ENTREPRENEURSHIP NOT JUST AS AN ECONOMIC LEVER, BUT ALSO AS A CORE LEADERSHIP IMPERATIVE.

South Africa, like many parts of the world, is undergoing major shifts in economic participation. The World Economic Forum has Follow: Mpho Motsei @ www.linkedin.com/in/mpho-motsei-049368237

Mpho Motsei

DRIVING TRANSFORMATION THROUGH MOBILITY

Unpacking the vision of BOMBELA OPERATING COMPANY for a connected South Africa

Transformational leadership isn’t just about strategy; it’s about people, purpose and progress. At Bombela Operating Company (BOC), a subsidiary of RATP Dev, this philosophy is more than a guiding principle; it’s a lived reality. As the operator and maintainer of the Gautrain, Gauteng’s world-class integrated public transport system, BOC is rede ning what it means to lead in the transport sector.

BOC’s mission goes beyond moving its customers daily on trains, buses and midibuses in a safe and environmentally responsible manner. It’s also about connecting communities, enabling economic participation and building a legacy of excellence that re ects the aspirations of South Africas. With a workforce of 1 200 people, comprising 500 direct and 700 indirect employees, BOC is a microcosm of the country’s diversity and potential. The company, which was recognised as the Train Operator of the Year at the 2024 Rail Industry Awards coordinated by the Railway Safety Regulator (RSR), proudly employs 54 per cent women, 27 per cent youth and 3 per cent people living with disabilities, demonstrating its commitment to inclusive growth.

COLLABORATION, EMPOWERMENT AND INNOVATION

At the helm of this transformation is CEO Nthabiseng Kubheka, who in 2024 was honoured by the International Railway Journal as one of the top 15 women in the global rail industry and whose visionary leadership has rede ned the role of a modern transit system. More than just moving people, the focus has also been on leading an organisation

REGULAR

that supports nation-building goals. Under her guidance, BOC has embraced a holistic approach to public transport – one that prioritises operational excellence while advancing social cohesion and mobility equity. Kubheka’s leadership style is rooted in collaboration and empowerment. BOC’s consultative, bottom-up leadership model ensures that every voice, from frontline staff to executive leadership, is heard. Regular strategic alignment sessions bring cross-functional teams together to co-create solutions that align with the company’s purpose-driven goals. This inclusive approach fosters innovation and ensures that the company’s direction is shaped by those who live its mission every day.

One of the recent and most inspiring examples of this ground-up innovation is the sign language training initiative. Sparked by employee suggestions, this programme equipped customer-facing staff

with basic sign language skills. The result? A more accessible and empathetic service experience for passengers who are deaf or hard of hearing – and a powerful testament to BOC’s commitment to universal access.

INVESTING IN PEOPLE

People are the heart of BOC. The company doesn’t just invest in rail operations it invests in its people. From technical to nontechnical roles, BOC nurtures talent, supports personal growth and fosters a workplace culture where every employee feels seen, heard and valued. This human-centric approach is not only good for morale; it’s also good for business. It drives innovation, enhances service delivery and strengthens the company’s reputation as a leader in the transport sector.

BOC’s culture of inclusion is especially evident in its leadership. With more than 50% per cent of the executive leadership roles held by women, the company is challenging long-standing norms in the rail industry and setting a new standard for gender equity.

As a subsidiary of RATP Dev, BOC brings global expertise to local challenges, combining international best practices with a deep understanding of South Africa’s unique context. The result is a transport system that is not only ef cient and reliable, but also socially responsive and future-focused.

In every journey that enables employee and community upliftment and being a driving force in the changing face of mobility, Bombela Operating Company is proof that transformational leadership can move a nation forward – one train, bus or midi-bus ride, one person, one purpose at a time.

Nthabiseng Kubheka

STANDING FIRM: THE BMF DEFENDS B-BBEE AS CORNERSTONE OF INCLUSIVE GROWTH

The Black Management Forum denounces the World Bank’s recent statement that South Africa should roll back its broad-based black economic empowerment labour policies to make the country more attractive to foreign investors, writes

MONDE NDLOVU, managing director of the BMF

The World Bank claims that black economic empowerment is an “excessive regulatory burden” and the policies need to be overhauled for South Africa’s economy to grow. This suggests that broad-based black economic empowerment (B-BBEE) is the stumbling block to economic growth and is oblivious of South Africa’s history of colonialism and apartheid that disenfranchised the black population and led to vast discrepancies in income, employment and general welfare, making South Africa the most unequal country in the world.

This indicates a critical shortage of public education around what B-BBEE is and its necessity in the South African context. The Black Management Forum (BMF) recommends that the Presidential B-BBEE Commission should ll this educational vacuum, so it does not further hamper the painstaking strides taken to bring social transformation to our country.

Black South Africans constitute an overwhelmingly majority of 81.4 per cent of the population, but are also overwhelmingly marginalised from economic participation. The of cial unemployment rate is around 32 per cent and disproportionately impacts black individuals. Furthermore, around 28 million are dependent on welfare because they lack access to economic opportunities. B-BBEE policies provide direct support, grants, tax rebates, employment and training to black individuals and businesses to help mitigate the structures and systems that are exclusionary and hinder economic participation.

ECONOMICS NOT RACIAL PREFERENCE

Importantly, the World Bank neglects to realise that black economic empowerment is not about racial preference; it is about economics. If the economy is not inclusive of 81.4 per cent of its population, it will not grow. The kasi economy, stokvels and other informal economic activities have arisen from the discrimination of customary economic activities for global free

trade. Today, those activities are valued at billions of rand.

The formal economy, dictated by international nancial institutions such as the World Bank, has failed the black majority, who, through their ingenuity, have created parallel structures of economic prosperity. Informality has provided affordable goods and services, jobs and allowed black businesses to ourish and black communities to grow. South Africa must leverage its unique strengths, such as its kasi economy and its burgeoning black middle class, and not abandon them by rolling back on B-BBEE. Only by embracing an inclusive and transformative economy will we get out of our current economic disarray.

by international organisations, is often in con ict with national laws, traditions and customs, and serves foreign rather than domestic interests.

The World Bank has extended its reach to the economic, social and political realms of states, serving as a “governor to governments”.

Economically, the World Bank claims to have a comparative advantage in providing analysis, evaluation, advice and nances to governments to reform their economies. It dictates macroeconomic policy choices such as the use of resources, budget, policy formulation, poverty reduction strategies and participatory strategies. It monitors economy-wide reform, public expenditure and sector reform in more than 100 countries, and changes rules, regulations and investment strategies.

The BMF strongly encourages the government to continue its black economic agenda. Little value has come from South Africa’s exibility to attract foreign investment. Instead, the country has been left to question the role of foreign investment.

SERVING OUR DOMESTIC, NOT A GLOBAL, AGENDA

Globalisation has bypassed the state, and internationalism has given rise to global civil society, global governance and global justice. Our state functions as part of a global community in a multilayered, global political stage of supranational governance. The concept of good governance, as determined

By continuing to allow the World Bank free rein to reform our rules and regulations and access our public information, South Africa serves the agenda of foreign capital at the cost of domestic prosperity. Until we make signi cant strides to distance ourselves from foreign demands, our domestic economy will continue to be exploited, and our national agenda to end poverty, unemployment and inequality will never be achieved.

While market triumphalism ended with the nancial crisis of 2008, the neo-liberal agenda continues to be expanded into social spheres of life and has eclipsed public spaces. South Africa is deeply involved in a world economic system that dictates national responses, leaving little room for it to pursue alternatives.

B-BBEE POLICIES PROVIDE DIRECT SUPPORT,

GRANTS, TAX

REBATES, EMPLOYMENT AND TRAINING TO BLACK INDIVIDUALS AND BUSINESSES TO HELP MITIGATE THE STRUCTURES AND SYSTEMS THAT ARE EXCLUSIONARY AND HINDER ECONOMIC PARTICIPATION.

Follow: Monde Ndlovu @ www.linkedin.com/in/monde-lot-ndlovu-mba-pd-sa-80500b162

Monde Ndlovu

DRIVING INCLUSIVE GROWTH AND ECONOMIC OPPORTUNITIES THROUGH YOUTH EMPOWERMENT

As South Africa focuses on supporting and uplifting youth, ISUZU MOTORS SOUTH AFRICA stands out as a beacon of inclusive growth and economic opportunity in the automotive sector

The company’s commitment to nurturing young talent and fostering innovation is exempli ed through the journey of Mo Ebrahim, a young professional whose career development at Isuzu Motors South Africa (IMSAf) re ects the brand’s broader initiatives to empower youth and drive economic progress.

Ebrahim’s journey began immediately after varsity when he joined IMSAf through the Graduate in Training (GIT) programme. Ebrahim credits IMSAf for shaping his career path by providing mentorship from seasoned experts, unique experiential opportunities and essential tools to maximise his potential. This early support was crucial in his transition from graduate to a con dent professional within the company.

Central to Ebrahim’s growth has been IMSAf’s structured development programmes. The GIT programme, coupled with formal education at Stellenbosch Business School, provided a strong educational foundation. However, it was the hands-on experience gained working closely with dealers as a business partner that truly enriched his understanding of the automotive business. This blend of academic and practical exposure is a hallmark of IMSAf’s approach to youth development.

BUILDING FUTURE LEADERS AND THE INDUSTRY

IMSAf’s culture plays a pivotal role in nurturing young talent. The company invests signi cant effort in crafting personalised development plans that combine education, experience and career progression opportunities. This strategic approach ensures that employees like Ebrahim are not only prepared for their current roles, but also groomed for future leadership

positions. Ebrahim highlights that mentorship within IMSAf is invaluable, offering him skills and motivation that extend beyond technical knowledge. The people-oriented culture fosters continuous learning and inspires young professionals to realise their potential.

Innovation is another cornerstone of IMSAf’s strategy for inclusive growth. The company encourages fresh perspectives from its young employees, recognising that evolving in an ever-changing industry requires bold ideas and a willingness to explore uncharted territory. Ebrahim’s role as a commercial vehicle forecasting analyst exempli es this as he was entrusted with signi cant responsibility that deepened his business insight and honed both hard and soft skills. This empowerment to innovate and take ownership is a key driver of IMSAf’s dynamic workplace culture.

The automotive sector’s steep learning curve poses challenges for many young professionals. Ebrahim acknowledges that IMSAf’s supportive environment, including guidance and mentoring, has been critical in overcoming these hurdles. The company’s commitment to youth empowerment and diversity ensures that individuals from varied backgrounds can bring unique skills and perspectives to the table. This inclusive ethos not only bene ts employees, but also enriches the broader automotive industry and community.

HELPING YOUNG PROFESSIONALS GROW AND ADVANCE

IMSAf’s focus on education, training and upskilling manifests in Ebrahim’s day-to-day work and long-term career prospects. The company combines real-world training with formal education, creating a powerful synergy that enhances professional growth and relevance. This approach re ects IMSAf’s dedication to

preparing its workforce for the demands of today and the challenges of tomorrow.

For young people aspiring to build a career in the automotive industry, Ebrahim offers valuable advice: embrace challenges and do not fear venturing into unknown areas. He emphasises that career development is a continuous journey lled with learning opportunities. IMSAf’s example shows that with the right support and mindset, young professionals can thrive and contribute meaningfully to economic growth and innovation. IMSAf’s initiatives demonstrate how investing in youth talent and fostering an inclusive culture can drive economic opportunities and sustainable growth. Through mentorship, education, innovation and diversity, IMSAf is not only shaping careers, but also building a stronger, more inclusive automotive industry for the future.

Mo Ebrahim

BUILDING FUTURE LEADERS

ISUZU MOTORS SOUTH AFRICA empowers young professionals through mentorship, skills development, and inclusive culture  – nurturing confident, capable leaders driving change in the automotive industry

Onicca Kekae’s story is a testament to how Isuzu Motors South Africa’s (IMSAf) youth-focused initiatives are empowering young professionals and driving transformation in South Africa’s automotive sector.

Kekae’s entry into the automotive industry was unexpected but purposeful. With a BCom in Economic Sciences and Econometrics, she joined IMSAf through the YES Programme in 2022, stepping into a world she knew little about. “If someone told me while in university that I’d end up in the automotive industry, I probably would’ve laughed,” she recalls. Yet, IMSAf’s supportive environment, structured mentorship and exposure to real business challenges quickly turned her curiosity into a passion and a promising career. Being placed in the rest of Africa and international markets team allowed Kekae to apply her academic background in international economics directly to her work, making her rst year both challenging and rewarding.

Central to her development were the YES and Graduate in Training (GIT) programmes. The YES Programme provided her with her rst real work experience, offering meaningful tasks and the chance to learn from different teams. The GIT Programme then gave her space to explore her strengths, connect with leaders and re ect on her long-term path. Structured modules on emotional intelligence, strategic management and leadership for the 21st century helped her grow beyond technical skills, nurturing her ability to lead with purpose. The Management Development Programme further shifted her perspective from task-based work to strategic thinking, ultimately preparing her for her current role as a market analyst.

IMSAf’s inclusive culture and robust support systems were pivotal in Kekae’s transition from graduate to professional. She highlights how mentorship from managers and executives not only taught her the job, but also instilled con dence and resilience. “IMSAf’s inclusive and people-focused culture created a space where I felt seen and supported. I wasn’t treated as ‘just a graduate’ I was empowered as a future leader,” she re ects.

A de ning moment in her career was applying for the market analyst position, a leap she prepared for with determination and the support of her manager. The experience taught her the value of preparation and self-belief, reinforcing IMSAf’s ethos of backing young talent to take on new challenges.

MENTORSHIP AND UPSKILLING FOR GROWTH

Mentorship has been a cornerstone of Kekae’s growth. Her mentors encouraged her to make mistakes, held her accountable and helped her de ne her leadership style – one rooted in integrity and lifting others. IMSAf’s culture of listening to young voices has also enabled her to contribute fresh perspectives, from innovating market data tracking to simplifying communication processes.

Facing the challenge of imposter syndrome as a young woman new to the industry, Kekae found strength in her team’s consistent support and validation. This sense of belonging empowered her to own her seat at the table and, in turn, inspire others. IMSAf’s commitment to youth empowerment and diversity has allowed her to make an impact beyond her immediate role, contributing to youth-focused strategies and championing representation in spaces that need it most.

IMSAF’S SUPPORTIVE ENVIRONMENT, STRUCTURED MENTORSHIP AND EXPOSURE TO REAL BUSINESS CHALLENGES QUICKLY TURNED HER CURIOSITY INTO A PASSION AND A PROMISING CAREER.

Education, training and upskilling are woven into Kekae’s daily work and long-term prospects. Formal programmes and informal learning opportunities ensure she is constantly developing new skills, laying the foundation for a ful lling career and future leadership. Her advice to aspiring young professionals: “Be curious, be brave and be prepared. Don’t wait for someone to tell you you’re ready, start showing up like you already are. Own your journey and make it count.”

Kekae’s story encapsulates how IMSAf’s investment in youth, mentorship and inclusive culture is not only shaping individual careers, but also driving broader economic growth and transformation for South Africa’s future.

VISIT WEBSITE

SCAN THIS QR CODE TO GO TO THE ISUZU MOTORS SOUTH AFRICA WEBSITE

Onicca Kekae

GROWING AN INCLUSIVE ECONOMY

It is possible for South Africa to have a more inclusive economy, in which the gap between rich and poor is

reduced and jobs are created?

By RYLAND FISHER

The CEO of Business Leadership South Africa (BLSA), Busisiwe Mavuso, has no doubts that if we do not take care of the high levels of domestic inequality in South Africa, we will always struggle with social stability.

Khulekani Mathe, the newly appointed CEO at Business Unity South Africa (BUSA), contends that the inequality in South Africa has its roots in our history of apartheid, but that it is not meant to be this way forever.

“It is up to us as South Africans to nd ways of deliberately addressing the inequality challenges we have as a country. It is possible to address inequality and create a more inclusive economy,” says Mathe.

Economist Iraj Abedian argues that “ rst and foremost, we need to recognise that the political economy objectives of social equitability require a multipronged framework within a robust and dynamic policy paradigm”.

The three responded to a question about whether it is possible to create a more inclusive society in South Africa, where inequality is reduced, employment increases, and poverty becomes less of a problem.

BUSINESS AS A KEY DRIVER OF CHANGE

Mavuso says business has to be deliberate about addressing inequality.

“This is not government’s problem. It is South Africa’s problem. Business is the biggest social partner, second only to government. We have disproportionate resources, and we have to use our disproportionality for the betterment of the citizens of this country.

“It is naive for us as the business community to think we can continue to be an island of prosperity in a sea of poverty. We can only prosper in a prosperous society.

“It is important for the private sector to work alongside government to x the challenges South Africa has so that our economy can grow. When all is said and done, we are trying to position South Africa

“THE BEST WAY TO DEAL WITH INEQUALITY IS BY PROVIDING DECENT EDUCATION.”

– BUSISIWE MAVUSO

to be a prosperous society because we know we too, as the business community, will bene t from a prosperous society where everything is working.”

DEMOCRACY WITHOUT JUSTICE IS NOT ENOUGH

Mavuso says South Africa achieved democracy in 1994, but that democracy is a political system. “It is not justice, nor is it equality. South Africa’s story is an incomplete transition because, as much as we have attained democracy, equality and justice are still missing.

“How do we then usher in this social justice? How do we ensure our fractured democracy and inequality are addressed. Business plays a critical role in ensuring we deal with these issues.”

Mavuso feels the best way of intervening is by providing our children with decent quality education. “Social grants can only take you so far. Many unemployed young people, despite having degrees, are not looking for social grants. They are looking to be integrated into the economic mainstream, and they want to be active and meaningful participants in the economy. This is why it’s important to grow our economy.

“It is also essential to have an educated population. The best way to deal with inequality is by providing decent education. If your people are not educated, if they don’t have the skills, if they cannot meaningfully offer their skills and their trade and participate in the economy, then you know you’re not going to have the right levels of economy.”

Busisiwe Mavuso

BEYOND BEE: CALLING FOR HONEST TRANSFORMATION

Mathe feels that government should have used the lessons learned from the implementation of black economic empowerment (BEE) over the past 21 years to improve the transformation process.

“By now, we should have the data that allows us to look back and see what has worked and really analyse the factors that have made certain things work better. We can abandon what does not work and concentrate on what works. We should review progress since we began implementing BEE.

“Each time the BEE Commission releases its report on transformation, everybody becomes angry. But we do nothing meaningful about it. It is one thing to complain about the level of transformation in a particular sector, but why is it so? What is happening in that sector? What is unique in that sector?

“We need to do more to take transformation to the next level. Yes, transformation has happened, and the country we live in does not look anything like the country we inherited in 1994. But it is not enough, so we should be doing a lot more analysing and being hard on ourselves on these questions.”

EDUCATION: THE ULTIMATE EQUALISER

Mathe believes education is one of the greatest levellers. “A good education can allow somebody from a rural village to compete against people from more af uent parts of the country and get ahead and get opportunities, whether in government, the private sector or entrepreneurial. We need the kind of education that begins to impact the mainstream of the economy.

“We’re not doing enough in that sphere. We have this obsession with matric; many matriculants are passing subjects that are not really in demand and don’t prepare them to participate in the economy. We’re not creating opportunities for young people; not only to depend on jobs when they nish their studies, but also to start their own companies and businesses.”

Mathe says we must invest in the economy so everybody has a stake. “You should have a job, but also access to other forms of participation in the economy. In the long run, this is what makes the economy more inclusive.”

RETHINKING JOB CREATION AND ENTERPRISE

Abedien says the political economy objectives of social equitability require a multipronged framework within a robust and dynamic policy paradigm.

“Concepts such as equitability and inclusion are time-bound, and no static approach to the challenges will suf ce. To illustrate, based on South Africa’s own experience over the past twenty- ve years, we cannot promote mediocracy in human resource development and dependency on social welfare and undermine economic growth by looting the state resources and expect to achieve social inclusion and growing equitability.

“In my view, the entire paradigm needs to be inverted. We need to ensure sustained growth, over thirty years or so, encourage self-dependency, promote human dignity and self-reliance, accelerate effective human resource development, and then use the public sector welfare programmes to provide ‘tail wind’ to accelerate inclusive socioeconomic developmental processes.”

Abedian believes we can reduce the gap between the rich and poor in South Africa, but only if we commit to a 30-year plan of action.

“This is not a quick x, nor is it driven by political posturing and statements. Furthermore, the oversimpli cation of the complex forces at play is a betrayal of the strategic objective.”

He believes it is not the government’s job to create jobs. “Countries or nations create enterprises and, depending on the prevailing

technologies and within the framework of the policies at play, jobs are created by various enterprises in different industries/sectors.

“The question therefore should be reframed along the lines of: ‘how do we promote the establishment of enterprises and investments?’ This focuses the mind not on the economy or the country, but rather on the industries. The answer becomes a great deal more realistic if we focus on industry-speci c opportunities for the promotion of enterprises/investments.

TOWARDS A 30-YEAR VISION

“Equally critical is the fact that when we pose the issue along these lines, it immediately jumps out the reality that the engine of enterprise development and risk capital commitment is in the private sector. The delineation of the political economy expectations becomes much easier, too.”

Abedian believes there is no simple answer to how one can grow the economy inclusively. “The best way for inclusive growth is a multifactor equation where its dynamics change depending on time, technology and the above factors, such as the natural and national resource endowment of a society, global competitiveness, the relative size of the public versus the private sector, the status of the country’s macro nancial balance, the robustness of governance institutions made up of sociopolitical-legal institutions together with macro nancial institutions, the human resource skill base of the nation, and the policy framework within which investment and enterprise development needs to be secured.

“The order of signi cance of the above factors is driven by time and the state of development of the economy. To carve out the best way for an inclusive growth strategy in South Africa 2025, one needs to con gure striking a technically sound and sustainable balance across the above-mentioned variables.”

“WE NEED TO RECOGNISE THAT THE POLITICAL ECONOMY OBJECTIVES OF SOCIAL EQUITABILITY REQUIRE A MULTIPRONGED FRAMEWORK WITHIN A ROBUST AND DYNAMIC POLICY

Follow: Busisiwe Mavuso @ www.linkedin.com/in/busisiwe-mavuso-bcompt-fcca-mbl-mphil-7593a154

Khulekani Mathe @ www.linkedin.com/in/khulekani-mathe-cert-dir%E2%93%A1-55661449

Iraj Abedian @ www.linkedin.com/in/iraj-abedian-55279616

Khulekani Mathe

Iraj Abedian

THE DIGITAL PATHWAY FROM SME TO LARGE ENTERPRISE

For SMEs to truly succeed, they must be able to fully leverage digital technologies and effectively monetise such technology adoption, writes SANNESH BEHARIE , managing executive of SME and mobile products at Vodacom Business

The South African government has long maintained that small and medium enterprises (SMEs) are the lifeblood of the country as they are critical for driving economic growth and innovation. However, SMEs face numerous dif culties on a daily basis, from physical impacts like power outages to nancial ones such as limited access to funding. In addition, many of them face challenges in adopting and leveraging digital tools that can propel them into the Industry 4.0 environment, where technology, connectivity and data enable a business to remain competitive and relevant.

To unlock the full potential of these smaller businesses, it is imperative to address barriers, such as infrastructure, connectivity and the high cost of implementing technology, and develop best practice frameworks for better collaboration. This is vital because technology has a signi cant role to play in assisting SMEs to tap into new opportunities, access nance, increase productivity, reduce costs and enhance their competitiveness. One of the keys to success for SMEs is that today the barriers to entry are far lower. One only has to recall how, before the advent of the cloud, the cost of building and operating one’s

own data centre was so prohibitively expensive that only large enterprises could afford it. Today, however, a business with only a handful of employees can access such infrastructure via the cloud, on a pay-as-you-go contract. This signi cantly reduces their costs while increasing their opportunities to conduct business.

DIGITALLY LEVELLING THE PLAYING FIELD

Simply being able to access social media platforms can greatly bene t a SME’s business. Social media is ideal for marketing, connecting with customers, and most critically, reaching a global audience, while e-commerce platforms make nancial transactions with international clients simple as well.

Vodacom Business understands these SME needs and provides an array of services to assist smaller

Sannesh Beharie

BIG DATA HAS CHANGED THE GAME FOR SMES AS THEY CAN NOW LEVERAGE THIS TECHNOLOGY TO GAIN A DEEPER UNDERSTANDING OF THEIR CUSTOMERS, LEADING TO BETTER CUSTOMER SERVICE.

entities. It also works closely with a range of organisations to see how we can best assist SMEs to leverage digital technologies to monetise their businesses.

The big technology currently on everyone’s lips is arti cial intelligence (AI) demand, which has risen in the past few months. It has come to the fore because in a digital economy, information is the lifeblood of a business. AI can provide SMEs with insights that enable them to make better decisions and earn a better return on investment (ROI).

In the past, an organisation would need at least its own research and analytics team and possibly even external partners to supply certain data points to obtain such levels of insight. Today, however, readily available AI technologies can provide an SME with answers and recommendations to support the decision-making process.

Big data has changed the game for SMEs as they can now leverage this technology to gain a deeper understanding of their customers, leading to better customer service. Additionally, more insight into the customer leads to an improved customer experience (CX), which, in turn, means improved revenue growth.

Another technology offering that can offer huge bene ts to this market segment is the internet of things (IoT). Any small business in the manufacturing space, for example, can leverage IoT to obtain a granular view of individual components within its plant. Similarly, IoT can offer huge advantages to SMEs in industries such as logistics and agriculture, enabling them to compete with much larger entities cost-effectively.

THE CONNECTIVITY CONUNDRUM

Another key technological advancement is the evolution that’s occurred with smart devices. Compared to earlier handsets, which essentially only offered voice, data and SMS, today’s devices allow users to access multiple applications that make it even easier for small entities to operate and ultimately compete effectively with larger opposition.

High-speed connectivity is the most critical enabler for SMEs. Vodacom Business has one of the largest networks and is therefore a service provider capable of delivering the required levels of connectivity.

Vodacom’s network quality is top-class, enabling SMEs to access applications and technologies that can help them improve their business and grant them the freedom to conduct their business at any time, from anywhere using any device.

Such connectivity also means that SMEs can leverage remote workers, which not only leads to increased productivity, but also boosts cost savings and affords them the opportunity to access the global market for any skills they may require.

There is a wide array of vertical markets where digital technologies can enable small enterprises to “punch above their weight”. In the retail space, e-commerce platforms have revolutionised things for SMEs, providing them with global reach. In the healthcare sector, it assists in implementing telemedicine and digitising private practices. In the manufacturing space, it enables effective asset management, utilisation and optimisation, among other things.

A DIGITAL FUTURE

Digitisation also plays a big part in helping SMEs obtain nancing and funding. It allows them to source this from ntech providers, who are nimble enough to provide them with the funding they need. Vodacom, through one of its subsidiaries, can offer exactly such services to this market sector.

Finance is the real key to growing a business. Regardless of how strong your

business operations are or how large your turnover, if you have no access to the nance required to scale up a business, your operation will always remain an SME.

Perhaps the most crucial aspect of SME digitisation is that it talks to the conversation in the SME space focused on access to markets and getting closer to one’s existing customers.

Today’s digital technologies have made access much simpler and exponentially more effective in reaching a vast array of customers and delivering a superior CX, while also improving productivity and ROI.

We believe Vodacom Business should be the provider of choice for SMEs as the company is strongly focused on more than merely partnering with such entities. Instead, it aims to support them in developing their businesses, visualising new opportunities and growing beyond the con nes of the SME space to become much larger enterprises. We aim to be seen as the digital provider that can tailor solutions to suit individual organisations. We have all these technologies and solutions that we essentially t together like Lego blocks, building a unique technology offering that will help individual SMEs grow and expand their businesses.

Our role as Vodacom Business is to be the bridge between, on the one hand, SMEs’ desire for more business growth, and on the other, the fear that there is so much technology out there they do not know where to begin. We see Vodacom’s role as helping SMEs understand how to fully leverage digital technologies and bring propositions to the table that make such technology adoption easier to monetise.

For more information: www.vodacombusiness.co.za

BUILDING SKILLS, ONE CLICK AT A TIME

South Africa’s wine sector is famed for bold reds, crisp whites and sweeping landscapes. However, the story today is not about what’s in the glass; it’s about what’s behind a screen, where people pick up skills once locked behind doors. By WANDA AUGUSTYN , Head of Brand and Communications at South Africa Wine.

Two years ago, the wine industry’s main body, South Africa Wine, asked: “How do we make practical learning accessible to everyone, from vineyard crews in remote valleys to export of cers in city of ces?” The answer became a free online learning system that treats professional growth as seriously as the harvest itself.

South Africa Wine is at the forefront of this innovation, designing and driving the digital learning platform that brings practical, industry-speci c training to thousands across the wine value chain. By investing in accessible technology, curating relevant micro-courses and integrating user-friendly tools for companies to track progress and certify skills, South Africa Wine has transformed training into a dynamic, inclusive system that meets the evolving needs of both rural workers and urban professionals.

The platform now supports over 2 600 users, up from just under 2 000 a year ago. Inside sit 590 bite-sized courses, each built for quick use in real workplaces. Farm teams stream a pruning demo on a phone between vine rows. Cellar assistants download foodsafety checklists. A young marketer nishes a certi cate in brand rules without leaving her desk. Travel costs vanish, as do venue fees and long days off-site.

That shift matters because wine businesses run on thin margins and packed schedules. When training is pricey or far away, it slips down the list. Moving lessons online clears those hurdles. More than 200 companies now track staff progress, set learning paths and store certi cates in one spot. In the past year, 675 people completed a full programme; 40% were women, many from small family farms.

UPLIFTING PEOPLE THROUGH SKILLs DEVELOPMENT

The numbers only hint at what is happening. Sandile Mkhwanazi once thought every grape became wine. “Now each bunch looks like chance,” he says. Sandile, a member of the South African Wine Industry Professional Body Council, started in vineyards with no formal background. Online courses and peer coaching helped him achieve quality control and leadership roles.

Eden du Plessis, South Africa Wine’s People and Skills Development Of cer, says digital tools are only half the work. “Videos give facts,” she notes, “but people also need guides and room to ask.” So, the team hosts knowledge donation days and live and online sessions where seasoned winemakers, lab techs and logistics pros share tips. Stories of progress surface weekly. Cellar cleaner Sipho Dlamini took an introductory wine microbiology class last winter. Today, he

IN THE PAST YEAR, 675 PEOPLE COMPLETED A FULL PROGRAMME; 40% WERE WOMEN, MANY FROM SMALL FAMILY FARMS.

South Africa Wine was honored with the Cape Chamber of Commerce and Industry (CCCI) Industry Innovation Award, celebrating the company’s groundbreaking digital learning platform and inclusive skills development efforts across the wine value chain.

is a junior lab technician, checking fermenting tanks and logging sugar readings. His old post is now held by a farmworker keen to learn cellar routines: one short course, two new paths.

The ripple moves outward. Investors like records they can trust. The learning system shows hours studied, tests passed and certi cates earned. A national code of conduct backs those records, making it more straightforward to unlock grants that pay for more seats, especially in rural regions.

Kachné Ross, Learning and Development Manager at South Africa Wine says, “Good wine needs good people. Lift skills and you lift the whole chain.” New micro-courses on climate-smart farming, e-commerce and energy use go live later this spring. Short podcasts in isiXhosa and Afrikaans are on the way for workers who prefer to listen rather than read. A series of day-in-the-life videos will show teens what a future in wine can look like, from drone pilots to sensory analysts.

South Africa Wine does not claim to have xed every gap, but the focus is clear: practical tools, low barriers and real results. A farmworker earns a certi cate during lunch, a start-up ships its rst export order after nishing a compliance module and a cellar reuses its greywater because a course explained the math.

Next time you swirl a Chenin or toast with a glass of Méthode Cap Classique, think of the thousands of hands and minds behind it. Their classroom may be a smartphone under a shade net, yet their learning travels to your table, giving South African wine its real edge: people who keep growing and help the industry grow with them.

FROM BACKYARD BLOOMS TO NATIONAL IMPACT

Women farmers are making a difference in their communities, preserving the environment by farming sustainably, writes VUKANI MAGUBANE

The youngest of three growing up in a rural area in the Western Cape where everyone tended big gardens in rich, beautiful soil, horticulturist and farmer Jacqueline Goliath often found herself outside alongside her father, while her older siblings helped their mother in the house.

“Playing is where my passion for gardening started,” she recalls. That childhood love for the land would eventually lead her to earn a diploma in horticulture and begin her career at the Agricultural Research Council’s (ARC) fynbos unit.

“As a nursery manager, I learnt and got the feeling for working with fynbos and developed my love for working with plants,” she says.

Her experience with ARC and her involvement with the Agribusiness in Sustainable Natural African Plant Products (ASNAPP) provided the foundation to venture out on her own in 2001 when she and her business partner launched De Fynne Nursery, where she is the managing director.

“We planted 1 000 fynbos in his backyard, and they sold out,” she says. “We started with a product for which there was market demand and, with our background, people asked for our assistance because fynbos is a dif cult plant to grow,” she adds.

De Fynne Nursey formed a partnership with Woolworths 14 years ago to supply potted plants. They started with 500 plants the rst year and today supply roughly 70 000 potted plants, including lavender, fynbos, blueberry, edible owers, olives, g trees and passion fruit.

The nursery, like other commercial farms, is part of Woolworths’ Farming for the Future programme. According to a Woolworth’s spokesperson, Farming for the Future works closely with farmers to embrace practical regenerative farming methods

unique to the products they grow, the climate and territory of their farms and available resources.

“At rst we thought we were too small to supply such a big company, but year by year we grew,” she says proudly. “Woolworths has high standards for quality and sustainability. With Woolworths, we are more aware of the environment. Being part of the Farming for the Future programme has helped us grow our business in a more environmentally conscious and sustainable way. It isn’t easy. The agricultural sector is predominantly male, and as a woman, it is a challenge. You need to believe in what you do.”

De Fynne Nursery supplies 54 per cent of its business to Woolworths and is making an impact socially and economically. Seventy- ve per cent of its employees are women, it has thirty-three permanent employee and three seasonal workers.

Woolworths’ sustainable farming practices also extend to the small-scale farmers it supports through its Zero Hunger initiative, which supports local organisations that assist vulnerable communities with education and skills to empower them to farm sustainably and sell in their local communities and feed their families.

In 2023, Woolworths partnered with Rhiza Babuyile (Rhiza), one of seven organisations supported by Zero Hunger, to empower people to be self-suf cient and produce food sustainably.

Rhiza supports a home-gardening initiative in Orange Farm, a peri-urban area in Gauteng. It purchased a farm

used as a training venue for agriculture –plant production, herbs and horticulture. Rhiza supports emerging farmers by providing training, resources and market access to small holder and women farmers.

Tshidiso Aphane says she heard about the programme by word of mouth. Before that, she had never been exposed to agriculture.

She joined Rhiza six months ago and has completed the theoretical and practical training. Aphane has since started her own backyard garden and is farming organically, making her fertiliser. She grows peppers, spinach, watermelon and farms eggs, which she sells to the community.

“In life. you have to start by crawling. Rhiza really pushed me. There are no job opportunities in Orange Farm. Rhiza helps the economy, and Woolworths is helping the community. You start your own thing and gain an income,” she says.

“Woolworths is helping improve the community economically, through job creation.”

Aphane is proud to be standing on her own and that the income she is generating is helping to support the household, particularly the economic support she can provide to assist her mother, who has been the sole breadwinner in the family. “Rhiza is not only helping my family, but also the community, which is starting to do more sustainable farming.”

“WE STARTED WITH A PRODUCT FOR WHICH THERE WAS MARKET DEMAND AND, WITH OUR BACKGROUND, PEOPLE ASKED FOR OUR ASSISTANCE BECAUSE FYNBOS IS A DIFFICULT PLANT TO GROW.” – JACQUELINE GOLIATH

Jacqueline Goliath

Tshidiso Aphane

MAGALIES WATER REMAINS FOCUSED ON CUSTOMER SERVICE

Since taking over much of the former Sedibeng Water’s services and challenges, MAGALIES WATER has been laser-focused on implementing infrastructure projects that will lead to much happier citizens

Established in 1969, Magalies Water initially focused on providing comprehensive water security solutions tailored speci cally for the mining sector, particularly in the Rustenburg and Thabazimbi areas. Over time, the organisation expanded its mandate to include supplying water services to the surrounding communities, thereby enhancing regional water management and resource sustainability.

In July 2022, the organisation assumed additional responsibilities following the disestablishment of Sedibeng Water. This transition involved the integration of Sedibeng Water’s operations into Bloem Water and Magalies Water respectively. As a result, Magalies Water acquired Sedibeng Water’s assets, operational frameworks, workforce and associated liabilities in the North West province. In response to prior challenges, Magalies Water is now prioritising the completion of outstanding projects, especially those inherited from Sedibeng Water. Furthermore, the organisation is implementing a comprehensive Bulk Water and Sanitation Master Plan aimed at effectively addressing the water and sanitation de ciencies within the expanded service jurisdiction.

FOCUS ON GROWTH AND FINANCIAL MANAGEMENT

Ofentse Nthutang, CEO of Magalies Water, indicated that previously the organisation was on a trajectory of focused growth before the incorporation of Sedibeng Water Board. However, since this incorporation, the organisation has experienced a regression, necessitating a shift in focus to building the foundational growth horizon. The regression has been largely driven by persistent nancial constraints and liquidity challenges, compounded by the escalating demands and operational impacts associated with inherited Section 30 activities, which have strained both capacity and resources.

“In light of the nancial challenges we inherited, particularly the backlog of outstanding payments, it is critical to enhance the organisation’s expenditure management. The persistence of municipal nonpayment has a signi cant impact on our operational viability and long-term scal sustainability. Addressing the issue of overdue payments is essential to alleviate the nancial pressure on our operations and to ensure a more stable economic future,” he says.

“We are prioritising enhancements in our customer service by emphasising the quality and reliability of our deliverables, ensuring compliance with established water security standards. Furthermore, post-merger analysis has underscored the crucial importance of effective corporate culture management. To address this, we must rst resolve the personnel management challenges that have arisen as a direct result of the merger.”

Nthutang highlights that following the merger, Magalies Water encountered signi cant disparities in salary structures: employees engaged in identical job functions were receiving varying compensation and bene ts. Additionally, he notes that Magalies Water had to integrate nearly 400 employees from Sedibeng Water, which possessed a largely inadequate income-generating asset base. In contrast, Magalies Water operated with approximately 320 employees and a robust asset base valued at R4.5-billion, underscoring the considerable difference in operational capacity between the two entities.

“To address various operational challenges, we conducted a comprehensive employee climate survey. We are analysing the feedback to formulate targeted strategies aimed at mitigating the issues currently faced by our workforce,

“To enhance operational ef cacy, we must implement a robust infrastructure development strategy, as many assets

“WE ARE PRIORITISING ENHANCEMENTS IN OUR CUSTOMER SERVICE BY EMPHASISING THE QUALITY AND RELIABILITY OF OUR DELIVERABLES, ENSURING COMPLIANCE WITH ESTABLISHED WATER SECURITY STANDARDS.” –OFENTSE NTHUTANG

acquired from Sedibeng Water are ageing and require substantial repairs. Our strategic objective is to transform Magalies Water into a resilient and future- t organisation,” Nthutang explains. “To facilitate this transformation, we are in the process of nalising a comprehensive Water Services Master Plan tailored for our supply area. This plan will serve as the foundation for our infrastructure investments, allowing us to effectively better plan for demand growth and expanded service reach, and to modernise our systems.”

PROJECTS TO BE IMPLEMENTED

Nthutang highlights several strategic initiatives outlined in the company’s 2016 master plan that have yet to be executed. Magalies Water is now actively seeking funding to bring these identi ed projects to fruition.

Ofentse Nthutang

Magalies Water has initiated several projects for which high-level feasibility studies have been nalised. The Bloemhof Bulk Water scheme is a key project that entails the abstraction and distribution of bulk water from the Bloemhof system. This initiative aims to meet the water supply needs of the Dr Ruth Segomotsi Mompati district, select areas within the Dr Kenneth Kaunda district, particularly Maquassi Hills, and the Ngaka Modiri Molema district. The project is poised to signi cantly mitigate the bulk water supply de ciencies currently affecting the North West Province.

“We are in discussions with Midvaal Water Company regarding a potential collaboration to leverage the available capacity of their water treatment facility in Steilfontein, situated near Klerksdorp. This plant, which previously catered to the water needs of mining operations in the Orkney/Klerksdorp region, has excess capacity due to recent disinvestments in the area,” says Nthutang. This surplus capacity could be strategically utilised to meet the water supply demands of the neighbouring areas, including Maquassi Hills and the Ngaka Modiri Molema and Dr Ruth Segomotsi Mompati districts.

“The third project is the Lesotho Highlands Bulk Water Project Phase 3, which was developed at the departmental level. This initiative aims to transport water from Lesotho to Botswana via an extensive pipeline network. Given that this pipeline will traverse the North West Province, we are looking to secure access rights as an offtaker for the water along its route.”

South Africa faces signi cant water scarcity challenges, with several regions currently under drought conditions. In light of this critical situation, Magalies Water must explore advanced strategies for water reclamation and reuse to enhance water resource management.

“As we move forward, it is imperative we formulate advanced strategies and harness pertinent technologies to facilitate the reclamation and reintegration of wastewater into our systems. Although the concept of wastewater reuse is well-established, it is essential to shift prevailing perceptions

A

CRUCIAL ELEMENT OF THEIR STRATEGY INVOLVES ENSURING THE MUNICIPALITIES SERVICED BY MAGALIES WATER FULFIL THEIR FINANCIAL OBLIGATIONS AND MITIGATE THE GROWING TREND OF OUTSTANDING DEBTS.

and actively shape policy frameworks that emphasise the prioritisation of water reusability. By doing so, we will not only enhance the sustainability of our operations, but also contribute to broader environmental goals,” Nthutang explains.

“Our research and development team has been designated to evaluate emerging technologies and analyse international best practices in reclamation and reuse. In July 2025, we have a scheduled trip to China to examine its successful projects in this domain. This visit will facilitate a knowledge exchange, allowing us to gather critical insights to inform our decision-making on which technologies are most applicable to the South African context.”

He emphasises that any newly implemented infrastructure will integrate advanced digital technologies aimed at enabling proactive maintenance. This approach will facilitate data collection for analytic purposes and optimise the upkeep of assets, thereby enhancing operational ef ciencies. The organisation plans to deploy smart metering systems, implement interventions for water loss detection, develop predictive strategies for water quantity security and conduct real-time testing of water quality.

LONGER-TERM EFFORTS

“We also have a project underway to address the water challenges experienced in Bela Bela, Modimolle and Mookgopong. This will involve both the construction of a 30ML reservoir and a contract to construct a pipeline from Modimolle to Mookgopong,” continues Nthutang.

“The outlined projects demonstrate our commitment to sustained growth and we anticipate that in the upcoming nancial year, we will be equipped to enhance water supply in the Moretele and Mookgopong regions. Additionally, we are executing an intervention

THE ORGANISATION PLANS TO DEPLOY SMART METERING SYSTEMS, IMPLEMENT INTERVENTIONS FOR WATER LOSS DETECTION, DEVELOP

project aimed at supplying an extra fty megalitres to Hammanskraal daily. This area has faced signi cant challenges in accessing clean potable water for an extended period, making this strategic initiative crucial. The completion of this project is projected for the next nancial year.”

Discussing future plans, Nthutang emphasises that a crucial element of their strategy involves ensuring the municipalities serviced by Magalies Water ful l their nancial obligations and mitigate the growing trend of outstanding debts.

“While we have inherited a signi cant portion of our debt from Sedibeng Water, we are actively engaging with our customers to establish payment arrangements as part of a debt relief initiative. Under this scheme, the Department of Water and Sanitation has pledged to partially write off our raw water account. This incentive encourages municipalities to enter into and adhere to payment agreements, which allow for the gradual write-off of a segment of their debt over three years.

“This strategy is designed to secure our long-term sustainability while maintaining suf cient nancial liquidity for the proposed infrastructure investments. This will enable Magalies Water to achieve organic growth, extending our services to additional unserved and underserved communities within our operational area. By meeting our service obligations, we aim to enhance customer satisfaction and ensure a positive experience moving forward.”

VISIT WEBSITE

For more information: +27 14 597 4636 info@magalieswater.co.za www.magalieswater.co.za

BRIDGING THE GAP BETWEEN POTENTIAL AND OPPORTUNITY

The private sector is working hard to equip young people with the skills, opportunities and support they need to thrive in the workplace. MARCHELLE ABRAHAMS spotlights two such projects

Second-year computer science student at The Tshwane University of Technology Kgaugelo Mphelo has a promising future. She was recently shortlisted as a nalist for the Top Tech Student award at Wired4Women.

One of her most signi cant achievements was providing sustainable solar energy solutions for low-income communities in Zimbabwe. Passionate about leveraging technology for social impact, her tech journey took off in 2018 when she was selected for the JP Morgan and GIBS Green Entrepreneurship Programme.

Mphelo appears con dent and self-assured. However, this wasn’t always the case. Like thousands of unemployed young South Africans, she found herself jobless and struggling with her mental health. Spurred by sheer determination to succeed, she enrolled in ALX’s AI Career Essentials programme.

“When I started in the ALX programme, I was at rock bottom … burnt out from undiagnosed ADHD … unemployed … I lacked the grit to do hard things,” says Mphelo.

ALX Africa’s mission is simple: to equip young Africans with the digital and leadership skills needed to thrive. Pointing to the latest stats, ALX South Africa general manager Divesh Sooka says with 45 per cent of South Africa’s youth unemployed and 97 per cent unable to access traditional tertiary education, the foundation is building an alternative pathway.

A LOST GENERATION?

According to Stats SA, young people account for nearly a third of the population. They represent a generation navigating a society shaped by the labour market, poverty, crime and access to education.

Despite playing a crucial role in South

Africa’s economic and social landscape, this demographic has high unemployment rates, mainly due to a lack of relevant skills.

The government’s National Development Plan (NDP) 2030 aims to reduce the number of people living in households with a monthly income below R419 per person from 39 to 0 per cent.

Nonetheless, joblessness has worsened over the past decade. Youth unemployment climbed from 36.8 per cent in 2014 to 46.1 per cent in Q1:2025, says Stats SA.

THE WORKFORCE OF THE FUTURE

Organisations like ALX Africa are actively working towards empowering young people to think beyond borders. “The global economy is in desperate need of skilled talent, especially in tech. That’s the gap ALX was built to ll,” explains Sooka.

Accessing tertiary education is one challenge the youth face. Driven by the harsh reality that thousands of students are turned away from university because of the lack of space, ALX sought to make higher education accessible.

Its career accelerator programmes are affordable, meet the curricula benchmarked to top United States institutions, and every course is designed to lead to real-world career opportunities.

A key initiative is ALX Africa’s learner journey, which spans three strategic phases.

The leadership incubator has seen 197 000-plus graduates and 40 000-plus jobs created in 2024 alone.

BRIDGING THE DIGITAL DIVIDE

Last year, Strider Digital partnered with SSD Training, offering individuals the opportunity to enlist in its learnership programme. The staf ng and recruiting company is passionate about helping differently abled and young South Africans achieve their educational dreams.

One of their successful candidates is Eustan Zealand. Hailing from the West Rand, the 26-year-old single father aspires to become a quali ed technician and open his own workshop.

“Cars have always been my passion, and they’ve helped keep me positive, often providing me with a way to get away from reality for a bit,” says Zealand.

He’s well on his way towards his goal. With Strider’s assistance, Zealand is studying business administration.

“Choosing this path is to show prospective employers that I have the skills they need to ensure their business runs successfully,” he adds.

Zealand is excited about the future and shares that he plans to nd a job in business administration and save towards his workshop.

Like ALX Africa, Strider Digital advocates for empowering the community. The company says: “People are the future of digital, which is why we’re focused on making sure we nurture the people leading the way.”

The message is clear. Companies must join the call to secure South Africa’s digital future, and it starts with the youth.

YOUNG PEOPLE ACCOUNT FOR NEARLY A THIRD OF THE POPULATION. THEY REPRESENT A GENERATION NAVIGATING A SOCIETY SHAPED BY THE LABOUR MARKET, POVERTY, CRIME AND ACCESS TO EDUCATION.

Follow: ALX Africa @ www.linkedin.com/company/alx-africa-sa Strider Digital @ www.linkedin.com/company/stridertechnology

Divesh Sooka

Eustan Zealand

Providing SMMEs with a significant boost

The Department of Science, Technology and Innovation’s Technology Stations Programme is designed to assist small businesses through the provision of technology solutions, services and training, writes RODNEY WEIDEMANN

In South Africa, it has long been recognised that small, medium and micro enterprises (SMMEs) will play a vital role in helping to uplift the South African economy.

Not only do these businesses play a critical role in job creation, but they also help to drive economic growth and facilitate inclusive transformation. Supporting these operations as much as possible is vital because of their positive impact on gross domestic product and formal employment, and how they help diversify the economy.

This is where the Department of Science, Technology and Innovation (DSTI) comes into play, with its Technology Stations Programme (TSP), hosted at higher learning institutions countrywide. Formerly known as the Tshumisano Programme, it provides broad-based, geographically distributed technological assistance to rms in the SMME sector.

According to Dr Mmboneni Muofhe, deputy director-general: socioeconomic innovation partnerships at the DSTI, the goals of the TSP include providing support to SMMEs to help improve their technological competitiveness.

“In addition, the technology support function is essential in linking the respective higher education institutions to the changing needs of industry. These industry needs can then be incorporated into student training, helping ensure the curricula remain relevant to industry needs,” he says.

“The technology stations also have an important function in technology diffusion, in raising awareness of new/more optimal technological solutions and in adopting new technologies in rms.”

He indicates that the key performance indicators for the TSP are being reviewed. Currently, they focus on the number of SMMEs supported annually and the amount of intellectual property products it has helped mature.

KEY TECHNOLOGY STATIONS PROGRAMME OFFERINGS

Although different Technology Stations Programmes have different opportunities, based on regional and sectoral orientation, below is a summary of the basic technology solutions, services and training on offer:

1.Test, measurement and evaluation: to ensure that the component, part or subsystem meets the original design requirements.

2.Technical consultation: providing inputs on concept viability, problem-solving and new solution development.

3.Rapid prototyping: the ability to rapidly develop prototypes that can validate a proposed design or function.

4.Small batch manufacturing: manufacturing a small batch of products or components required to test the market or for compliance, among others.

5.Product and process development: to help develop or troubleshoot product and/or process-related developments.

6.Engineering and design services: to perform engineering services that might not be available in a firm/SMME. This could include computer-aided engineering, digitising existing components and configuration management, among others.

Fast fact

The Technology Stations Programme is implemented by the Technology Innovation Agency and hosted by the respective higher education institutions, with 15 technology stations currently located at 13 universities (mainly universities of technology) countrywide Source: Department of Science, Technology and Innovation

enhance productivity and job creation, for example, through the emergence of new subsectors,” Dr Muofhe explains.

“Upgrading skills is an essential part of adopting new technologies or technological innovation. The technology stations provide speci c technological support to rms, especially SMMEs, that they normally do not have access to, or those functions they might only need during the product/process development stage.”

He points out that the support provided here by the TSP includes:

• Assistance in evaluating concept designs and functional evaluations.

• Help in developing prototypes for bene ciaries.

• The manufacturing of batch products for initial evaluation and certi cation testing.

• Some limited batch manufacturing.

• The provision of certain expert solutions.

“In the end, the programme’s goal is to ensure substantial numbers of highly technologically competitive SMMEs, while also strengthening the science, technology and innovation ecosystem, by ensuring the country’s technology skills are optimally leveraged to improve technological competitiveness.

It also aims to ensure an active network of ‘technology connectors’, who will facilitate technology transfer and technology adoption.

STRONG SUPPORT

“Technological innovation is acknowledged as an important source of economic development, especially in today’s technology-intensive society. It also helps

“From a DSTI perspective, the TSP aims to maximise the enabling environment for SMMEs. This allows these smaller entities to focus on what they need to do to be successful in the market, all while knowing that there is a mature technological support programme that can provide for their technological needs,” concludes Dr Muofhe.

Follow: Dr Mmboneni Muofhe @ www.linkedin.com/in/mmboneni-muofhe-ab54478

Dr Mmboneni Muofhe

IS ENTERPRISE SUPPLIER DEVELOPMENT HELPING SUSTAINABLE GROWTH?

Enterprise Supplier Development is supposed to help businesses foster sustainable growth by supporting local entrepreneurs, promoting inclusive supply chains and encouraging innovation, but is it working?

By TREVOR CRIGHTON

Enterprise Supplier Development (ESD) is part of broad-based black economic empowerment (B-BBEE) legislation, but it is not solely a South African notion. The B-BBEE Commission’s most recent 2022 Determining the Effective Implementation of Enterprise and Supplier Development Funds report indicates that the proven effects of ESD include the boosting of economies, diversi cation of supply chains and creating jobs.

The study shows that only 62 per cent of participating entities con rmed having ESD strategies, suggesting the prevalence of ad hoc approaches to implementing ESD, which reduces its intended impact as a B-BBEE lever. Is ESD then working as planned and having the desired impact on the South African economy?

THE RUBBER AND THE ROAD

Naledzani Mosomane, head of enterprise and supplier development at Business and Commercial Banking, Standard Bank South Africa, says ESD is a key lever for inclusive growth, addressing unemployment and creating sustainable businesses.

“Engagement and collaboration with key stakeholders within the bank, such as the procurement and business units, allow ESD to have a broader reach of potential suppliers and for businesses to be considered for the ESD programmes and gain insight into which commodities are in demand for development,” she says.

B-BBEE Commissioner Tshediso Matona says that to be impactful and successful, ESD is meant to be part of a broader integrated strategy that includes other players and, in particular, the banks whose

B-BBEE scorecard include what is referred to as “empowerment nancing”, which provides for concessional and affordable terms of nance.

“This is an important function of the nancial sector in facilitating nance for small and medium enterprises (SMEs). The successful contribution by the ecosystem rests on public-private partnerships, which need to be strengthened to achieve the desired results. Interventions crucial for participants or role players include proper needs analysis, incubation, supporting nancial literacy for SMEs and technology adoption,” he says.

FOSTERING LOCAL PRIDE

goal is to localise commodities that are niche in South Africa,” she says. “This is another opportunity and a driver for the development of businesses in these commodities that are not readily available or established in South Africa. Collaboration with local government and our procurement areas is very important to enable this drive for supporting local businesses.”

Mosomane’s suggestions for additional initiatives that could ensure SMEs thrive include simpler procurement processes for SMEs in both public and private sectors, faster payment term legislation to ensure corporates pay SMEs within 7–30 days and relaxation of compliance and red tape.

While there’s often a battle to get local products and services accepted as being of suf cient quality over international options, Mosomane says, over the past few years, there has been a new sense of pride to buy and consume local, especially within speci c sectors, such as food, fashion and small ntech industries. “Unfortunately, not every product or service can be procured locally. B-BBEE legislation, speci cally the preferential procurement pillar, does allow for entities to procure from foreign suppliers with speci c criteria. However, the overall

She says ESD programmes foster business innovation by providing access to business development, training, mentoring and coaching, helping them access funding opportunities or digital adoption, encouraging co-creation with corporates and the public sector, and hosting pitch events that often result in new product development or fresh business ideas.

Matona agrees, citing two reasons: “The rst is that to achieve the objectives of the B-BBEE Act, there should be an increase in effective economic participation by black-owned and managed enterprises, as well as the enhancement of access to nancial and non nancial support,” he says. “Secondly, it is important to unlock the potential of the SME sector as a driver of growth and employment as envisaged in the country’s national economic strategy.”

“ESD PROGRAMMES FOSTER BUSINESS INNOVATION BY PROVIDING ACCESS TO BUSINESS DEVELOPMENT, TRAINING, MENTORING AND COACHING.”

NALEDZANI MOSOMANE

Follow: Naledzani Mosomane @ www.linkedin.com/in/naledzani-mosomane-ca-sa-1a0b312a Tshediso Matona @ www.linkedin.com/in/tshediso-matona-84580157

Tshediso Matona

Naledzani Mosomane

SUSTAINABILITY AND “THE CHANGING WORLD ORDER”

In the struggle between global powers, South Africa must carve its path with precision and moral courage, using environmental, social and governance, argues CUMA DUBE

In Ray Dalio’s book, Principles for Dealing with The Changing World Order, he offers a compelling framework for understanding why nations rise and fall. By examining historical empires, Dalio identi es key indicators of success or failure: debt cycles, internal cohesion, leadership quality, resource management and adaptability, among others. We could apply this framework to South Africa’s corporate landscape, speci cally how it may align with how companies have integrated environmental, social and governance (ESG) principles. Dalio advocates for implementing substantive transformations that bolster resilience and sustainable development. He argues that ESG, and its integration into business practices, represent the microcosm re ecting the macrocosm of national order.

A MICROCOSM OF NATIONAL STABILITY

In South Africa, many big corporations are leading ESG integration. Many claim to have gone “beyond compliance” and embraced stakeholder capitalism in real and practical ways. ESG principles enhance corporate agility during systemic crises. Firms with robust ESG strategies can adapt more effectively to shocks by leveraging sustainable innovation, easing nancing constraints and maintaining stakeholder trust, allowing them to preserve value and recover faster from adverse events.

THE ENVIRONMENTAL DIMENSION

The environmental aspect of ESG aligns with Dalio’s emphasis on resource management. South Africa’s heavy reliance on coal poses a signi cant challenge, but forward-thinking companies are working to reduce this dependency. While coal will still have a signi cant role to play in the future, cleaner energy and water conservation are crucial resources for long-term national and international prosperity.

SOCIAL RESPONSIBILITY

Social responsibility addresses what Dalio might call internal cohesion – the hierarchical stability preventing a nation from devouring itself. With one of the highest inequality rates globally, South Africa teeters on the edge of chaos. South Africa needs to reinforce its social fabric. The efforts of corporates that have pursued intentional community investments and invest in their people equitably help stabilise the social order essential for sustainable national power, especially in uncertain times.

GOVERNANCE

Governance, ESG’s third pillar, re ects Dalio’s focus on leadership quality – in deeds and character. The ESG framework provides a roadmap for ethical stewardship and encourages corporates to transcend short-term thinking and embrace the responsibility that accompanies true power.

LEADERSHIP IN AN UNCERTAIN WORLD

ESG integration represents a strategic adaptation to the changing global landscape, building resilience when global foundations shift. It underscores the need for principled leadership that prioritises long-term bene ts over short-term gains. This includes resisting pressures from competing powers when such alliances con ict with national interests or ethical considerations.

AVOIDING SUPERFICIAL ADOPTION OF ESG PRINCIPLES

However, we must be cautious against super cial adoption. Many corporates adopt the language of sustainability while neglecting its substance. Genuine integration of the ESG framework requires commitment: addressing debt sustainability, fostering innovation and positioning strategically in emerging geopolitical realities while being environmentally and socially responsible.

Follow: Cuma Dube @ www.linkedin.com/in/cuma-dube-16884043

CASE STUDY: WOOLWORTHS HOLDINGS

Woolworths exemplifies how corporate ESG initiatives align with Ray Dalio’s principles for national success. Its Farming for the Future programme employs regenerative agriculture across 80 per cent of fresh produce suppliers, improving soil health and biodiversity while capturing 15 per cent more carbon annually. This mirrors Dalio’s emphasis on sustainable resource stewardship. Woolworths’ Inclusive Justice Initiative targets equitable employment and supply chain participation. Over 62 per cent of its suppliers are black-owned small and medium enterprises, and 78 per cent of management roles are held by historically disadvantaged groups. Its Ethical Trading Initiative partnerships ensure living wages for 92 per cent of apparel workers, reducing labour disputes by 40 per cent since 2020. This proactive approach to social risk management exemplifies how corporate ESG efforts can stabilise fractured societies.

The company achieved a 30.6 per cent emissions reduction while growing revenue by 8.3 per cent in 2023, proving Dalio’s thesis that disciplined, long-term leadership outperforms short-termism.

ESG AS AN EXISTENTIAL IMPERATIVE

In essence, ESG integration in South Africa isn’t just good corporate citizenship; it’s an existential imperative. Companies that fail to adapt will struggle to survive. Those embracing ESG principles contribute to the struggle to establish order amid chaos, laying foundations that will weather the coming storms.

For South Africa to succeed in this changing world order, its corporations must recognise that sustainability is about creating the foundations upon which civilisations endure. By aligning business practices and policymaking with Dalio’s principles, South Africa can ascend in the global hierarchy. ESG isn’t just a buzzword; it’s a blueprint for resilience and success in a rapidly evolving world.

ESG: SOUTH AFRICA’S INVESTMENT IMPERATIVE

Why responsible investing is no longer optional, and how local asset managers are rising to the challenge.

By TLAMELO NTABENI, senior manager research analyst

at Sanlam Investments Multi-Manager

The integration of environmental, social and governance (ESG) considerations into investment strategies is accelerating in South Africa. A decade ago, ESG was seen as a nice-to-have. Today, it’s a necessity. Spurred by global regulation, shifting investor expectations and the need for sustainable returns, asset managers must now navigate a rapidly evolving landscape, where risk-adjusted performance demands more than nancial insight.

ACCELERATION BY REGULATION

Globally, regulatory frameworks are evolving to mandate ESG disclosures.

In the United Kingdom, for instance, investment rms managing over £50-billion in assets are required to publish their rst Task Force on Climate-related Financial Disclosures (TCFD) reports as of June 2023.

From June 2024, rms managing between £5-billion and £50-billion in assets will be required to publish their rst reports. While South Africa has not yet mandated TCFD reporting, the Johannesburg Stock Exchange (JSE) has already incorporated TCFD principles into its guidelines – suggesting that the local asset management industry is likely to follow.

In response to these pressures, South African managers have developed responsible investing/ESG policies, improved corporate engagements and expanded their teams with ESG expertise. The heightened interest in ESG re ects a global trend towards hiring skilled professionals to navigate the complex landscape of responsible investing.

THE QUESTION OF DECARBONISATION

The challenge of decarbonisation is particularly acute in the South African investment landscape, where the materials, mining and energy sectors comprise approximately 28–30 per cent* of the FTSE/JSE All Share Index, according to the FTSE Russell factsheet.

Some South African managers are integrating climate change considerations – both transition and physical risks – into their investment processes. This involves assessing climate change risk exposure in portfolios, engaging with investee companies on climate issues and supporting industry initiatives for better climate data disclosure.

As part of their ESG framework, managers advocate for a just transition, urging companies to develop clear roadmaps and objectives. Rather than disinvesting from companies with poor ESG scores, many managers opt for a collaborative approach to improve ESG performance. This strategy recognises that divestment alone won’t address the broader challenge of economic decarbonisation.

THE CURRENT PICTURE

South African asset managers have made signi cant strides in adopting ESG criteria. According to the Alexander Forbes 2024 Manager Watch™ Annual Survey, the number of signatories to the Code for Responsible Investing in South Africa advanced by 32 per cent, from 56 in 2021 to 74 in 2024. Additionally, the number of asset managers registered as the UN’s Principles for Responsible Investment signatories rallied by 49 per cent over the same period, reaching 64.This adoption rate signi es a growing commitment to responsible investing practices.

In developed markets, the focus often lies on environmental issues. However, in developing countries like South Africa, social challenges, such as unemployment and the lack of basic services (water and electricity), take precedence. These services still rely heavily on carbon-intensive energy sources, complicating the environmental aspect of ESG.

Addressing social issues such as labour, safety and community relations is crucial in the South African context, given the high levels of poverty and unemployment.

ESG-proo ng investment portfolios is still in its early stages, presenting asset managers with the challenge of balancing risk/return objectives through responsible investing. Exploring innovative solutions, such as climate-aligned single stock portfolios, ESG integration equities and sustainable thematic equities, is essential. The investment industry should view ESG not as an obstacle, but rather as an opportunity to achieve sustainable returns while safeguarding the planet for future generations.

Achieving risk-adjusted returns through ESG integration involves forward-looking actions such as evaluating a portfolio’s carbon preparedness, assessing its alignment with a 1.5°C or 2°C future, and identifying laggard companies to create opportunities for improvement.

The transition to a sustainable paradigm will take decades, akin to historical shifts from hand power to horsepower and then to fossil fuels. As ESG factors continue to drive conversations, South African fund managers must navigate this evolving landscape, balancing environmental, social and governance considerations to foster a sustainable future. The lessons from corporate scandals and the impetus from new regulations underscore the need for vigilant, responsible investing.

Sanlam Investments Multi-Manager is committed to investing in the shared future we need. We prioritise robust nancial and social returns, with an emphasis on fair, equitable ESG that promotes considered sustainable investing.

Follow: Tlamelo Ntabeni @ www.linkedin.com/in/tlamelo-ntabeni-cfp%C2%AE-60030b13

Tlamelo Ntabeni