Social Impact May 2025

MAY 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE IN ACTION

WWW.BUSINESSMEDIAMAGS.CO.ZA

TOGETHER, WE BUILD TOMORROW. EMPOWERING THE NEXT GENERATION THROUGH COLLECTIVE ACTION

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Contents 10 DRIVING RURAL UPLIFTMENT

Life sciences companies can scarcely ignore the need to care for people as social impact tends to be ingrained into their DNA. But how are leaders in the space also striving to care for the planet and build trust in communities regarding their governance?

11 BUILDING STRONGER COMMUNITIES

We explore a few programmes that aim to uplift communities by providing resources, building skills and enhancing the quality of life for those in need.

16 THE NATIONAL DEVELOPMENT PLAN

The target date for the National Development Plan 2030 goals is around the corner. We speak to corporates in the banking and retail sector to find out how they are contributing to its realisation.

20 THE HUNGER CRISIS

How CSI projects are tackling food insecurity through urban farming, food banks and sustainable agricultural training.

23 IS STRATEGIC CSI DEAD? With the trend towards trust-based philanthropy gaining momentum globally, the architect of “strategic philanthropy” as a concept has declared it dead.

Trialogue unpacks the arguments for why it has failed.

26 TRENDS IN CORPORATE GIVING Trialogue shares the numbers around CSI investment for 2024.

28 YOUTH EMPLOYMENT Equipping young South Africans with vocational skills, internships and entrepreneurship support to help secure their future success today.

31 DRIVING GENDER-INCLUSIVE GROWTH Gender equality is not just a social imperative, but also a driver of financial performance. We unpack the issues and interventions within the financial services fraternity.

35 BREAKING THE CYCLE For many young children, going to school hungry is not an occasional hardship; it’s a daily struggle. Persistent hunger affects mood, focus and learning ability.

Addressing nutrition and early childhood education is essential for breaking the cycle of poverty.

38 SAFE SPACES Are businesses intervening to help create safe spaces for our communities?

42 DIGITAL INCLUSION We look at social investment around bridging the digital divide for marginalised communities through access to technology, internet connectivity and digital literacy programmes.

46 DIVERSITY, EQUITY AND INCLUSION Why abandoning DEI imperatives impacts the entire company value chain – DEI is not just a corporate buzzword, but also a fundamental driver of social impact.

50 ENVIRONMENTAL, SOCIAL AND GOVERNANCE ESG principles have evolved beyond mere shareholder reports. In South Africa, companies are embedding these principles into their core operations, proving that sustainability is both a responsibility and a business advantage.

For more insights, turn to page 26.

Did you know?

39%

of companies have exit strategies for all their CSI projects.

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F ROM T HE EDI T OR

Collective Action for a More Equitable Mzansi

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outh Africa remains one of the most unequal countries in the world where economic disparity manifests in numerous social challenges, including poverty, unemployment and inadequate access to basic services. The burden of addressing these issues has traditionally fallen on government institutions, but in a progressive society, the responsibility must be shared across all sectors. Corporates, civil society and individuals alike must actively participate in fostering social change and uplifting communities.

In this edition of Social Impact, we explore the tangible contributions businesses are making to create a more equitable society. While philanthropy and corporate social investment are often spoken about, we delve deeper into how these initiatives can be structured for long-term sustainability and meaningful change rather than short-term relief efforts.

One of the critical issues highlighted in this issue is hunger – an ever-present challenge that disproportionately affects rural communities and young children. Many children attend school on an empty stomach, making it difficult for them to concentrate and absorb knowledge. Hunger is not just about food insecurity; it directly impacts educational outcomes, future employment prospects and economic participation. We shine a light on various corporate initiatives that address this issue, from food banks and soup kitchens to sustainable agricultural projects aimed at creating food security for vulnerable communities.

Beyond food security, education remains a cornerstone of social development. Investment in education – whether early childhood development, STEM subjects (science, technology, engineering and mathematics) or vocational training – can break the cycle of poverty and provide young people with opportunities for a better future. Many businesses support education through bursaries, skills development programmes and technology-driven solutions to enhance learning.

In this issue, we showcase the companies making strides in ensuring South Africa’s youth are equipped with the tools they need to succeed in an increasingly competitive global economy.

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The intersection between economic growth and social responsibility is becoming more apparent. More corporates, governments and individuals recognise that economic stability cannot be sustained if social inequalities persist.

The rise of environmental, social and governance (ESG) frameworks is a testament to this shift as companies now integrate sustainability and ethical governance into their core strategies.

We look at businesses leading the way in ESG compliance, demonstrating that profitability and social good can go hand in hand.

However, true social impact requires more than just well-intentioned interventions – it demands systemic change. Temporary fixes, such as charitable donations or one-off community projects, are no longer enough.

The challenge lies in implementing sustainable solutions that address the root causes of societal problems. This means investing in long-term development strategies that empower communities, create jobs and foster innovation.

As you read this issue, we encourage you to reflect on how businesses, big and small, can contribute to meaningful and lasting social change. Corporate social responsibility is not merely an obligation; it is an opportunity to redefine the role of business in shaping a better future for all.

We hope that this edition of Social Impact serves as the inspiration for corporates and individuals alike to engage more deeply in conversations and actions that drive meaningful social upliftment. Let us move beyond temporary solutions and work towards sustainable, impactful change that transforms lives and communities for generations to come.

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, Cathy Duff, Matthew Hirsch, Robert Lewenson, Vukani Magubane, Itumeleng Mogaki, Thando Pato, Vanessa Rogers, Elriza Theron 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 Image: www.freepik.com SALES Project Manager: Tarin-Lee Watts wattst@arena.africa | +27 87 379 7119 +27 79 504 7729 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

Ryland Fisher EDITOR

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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. SOCIAL IMPACT 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.

SOCIAL IMPACT

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EN V IRONMEN TA L , S OCI A L A ND GOV ERN A NCE

HOW ESG STRATEGY IS DRIVING LOCAL RURAL UPLIFTMENT Life sciences companies can scarcely ignore the need to care for people as social impact tends to be ingrained into their DNA. How are leaders in the space also striving to care for the planet and build trust in communities regarding their governance practices, asks VANESSA ROGERS

MEDIHELP FACILITATES FOOTWEAR FOR DESERVING YOUNG LEARNERS Medihelp, in partnership with Netcare and Adcock Ingram Critical Care, supports MyWalk, a nonprofit initiative providing school shoes to children who walk long distances in extreme weather. What makes MyWalk unique is its sustainable approach – each pair of shoes is crafted from recycled medical waste, including single-use PVC drip bags, oxygen masks and tubing. These materials are collected from Netcare hospitals, cleaned, granulated and repurposed into durable footwear, reducing landfill waste.

The first donation went to the Khomani San community in Andriesvale,

Fast fact

An asthma inhaler consists of three parts: the plastic actuator, the metal canister and the medication.

The plastic component can be recycled into functional items to benefit local communities.

Source: Cipla SA Northern Cape. Carina Groothof, a marketing and communications professional at Medihelp, shares: “We danced in the sand, took pictures of the kids in their new shoes and shared a special moment. Seeing how one pair of shoes can impact a child – physically and emotionally – was deeply moving.”

For 2025, Medihelp has partnered with Samaritan’s Feet to distribute shoes in the Eastern and Northern Cape. Groothof adds: “These shoes restore dignity, boost confidence and give children hope.”

Beyond MyWalk, Medihelp supports initiatives such as the Phelophepa Healthcare Trains and Bekezela Community Crèche, reinforcing its commitment to community upliftment.

ALLEVIATING SUFFERING AND REDUCING ENVIRONMENTAL IMPACT The Cipla Foundation, alongside Cipla SA, is making a meaningful impact across health, education and climate response through four key initiatives: 1. Miles for Smiles. This initiative raises funds for Operation Smile, a nonprofit organisation

Did you know?

By the end of March 2025, Medihelp had already distributed 2 100 of the 3 400 pairs of school shoes they had sponsored for hopeful learners.

Source: Medihelp

providing free corrective surgeries for children born with cleft lips or cleft palates, giving them a second chance at life.

2. Ajuga. Focused on early childhood development, Ajuga provides high-quality infrastructure to ensure children from disadvantaged backgrounds receive proper childcare, nutrition and education during the critical first 2 000 days of their lives.

3. Sha’p Left. A nurse-led primary healthcare service that delivers accessible, high-quality and affordable medical care in a dignified environment, helping to ease the burden on South Africa’s overstretched public healthcare system.

4. The Inhaler Recycling Project. A sustainability-driven initiative that encourages asthma sufferers to recycle and repurpose their inhalers, helping to reduce the carbon footprint of the approximately 6.34 million inhalers discarded in landfills annually.

“Because the pharmaceutical industry impacts the environment in many ways – from drug development to manufacturing, packaging and waste disposal – Cipla SA is committed to reducing its carbon footprint through research and the adoption of more sustainable business practices,” says Cipla SA CEO Paul Miller. “By prioritising ESG factors – caring for life, people and the planet – Cipla SA is better positioned to mitigate risks, enhance its reputation and create long-term value for all stakeholders.”

“SEEING HOW ONE PAIR OF SHOES CAN IMPACT A CHILD – PHYSICALLY AND EMOTIONALLY – WAS DEEPLY MOVING.” – CARINA GROOTHOF

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wC has been vocal about the need for healthcare organisations to integrate environmental, social and governance (ESG) priorities into their corporate strategies. Their research paper, How health organisations can integrate ESG priorities: What’s right for the world is good for business, highlights the growing importance of this shift.

Traditionally, healthcare providers, payers, pharmaceutical companies and life sciences organisations have focused primarily on the social pillar of ESG. PWC’s research attests to this, stating that since January 2020, the social pillar has accounted for 77 per cent of ESG efforts in such organisations, with environmental and governance considerations receiving only 12 per cent and 11 per cent of the focus, respectively.

By embedding environmental and governance principles more deeply into their strategies, healthcare firms stand to gain not only in terms of regulatory compliance, but also by strengthening trust within the communities they serve.

We explore how two South African healthcare companies are implementing comprehensive ESG strategies to drive meaningful upliftment, particularly in rural areas and underserved communities.

READ

HOW HEALTH ORGANISATIONS CAN INTEGRATE ESG PRIORITIES

Follow: Carina Groothof @ www.linkedin.com/in/carina-groothof-49729a109 Paul Miller @ www.linkedin.com/in/paul-miller-13498a26

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S OCI A L UPL IF T MEN T

BUILDING STRONGER COMMUNITIES Community upliftment projects are essential for improving the overall wellbeing of communities. ITUMELENG MOGAKI takes a look at a few programmes that aim to uplift communities by providing resources, building skills and enhancing the quality of life for those in need with sector legislation and access crucial government subsidies, ensuring a safer and healthier learning environment for young children.

“Our primary objective has always been to build sustainable communities by returning value to our members. To us, success means achieving inclusive growth that allows our members and communities to share in the achievements of the society,” says Morné Scholtz, social programmes manager Qiqa Nwabisa Nyangiwe at AVBOB. Beyond education, AVBOB also supports initiatives aimed at combating hrough its corporate social investment gender-based violence (GBV) and contributing (CSI) initiatives, AVBOB is dedicated to to the Kleinkaroo Initiative, a collaborative addressing societal challenges while effort with Ninety-One, Alex Forbes and the aligning its efforts with the United Professional Provident Society. This partnership Nations Sustainable Development has facilitated over R1-million in donations, Goals (UN SDGs). providing solar lights, educational resources To foster greater literacy and and bicycles for learners who reside long education, AVBOB, in 2024, donated distances from their schools. its 70th container library fully stocked with Recognising the need for rapid response in new educational books. crises, last year AVBOB contributed over Over the past decade, AVBOB’s literacy R2.2-million towards disaster relief efforts, initiatives have benefitted over 63 000 including R2-million in free burial and learners, 1 908 educators and 550 educational repatriation services. assistants. To sustain this impact, AVBOB refurbishes previously donated libraries, updating them with CAPS-aligned books. In the EMPOWERING UNEMPLOYED SOUTH AFRICANS past year, six libraries were refurbished, with an Taking Care of Business (TCB), a nonprofit investment exceeding R1.7-million, while organisation, helps unemployed South 10 libraries received new books valued at Africans, mainly mothers, to become over R568 000. self-employed. Through its Resell, Repair AVBOB’s early childhood development and Remake programmes, TCB turns unsold programme (ECD) focuses on identifying clothing, homeware, appliances and fabrics from and supporting unregistered ECD centres in retailers into business opportunities. underserved communities. By helping these Participants resell, repair or remake these centres meet the necessary registration items, building small businesses and supporting requirements of the Department of Basic their families. Within a month, they start earning Education and the Department of Social money. They undergo intensive training in Development, AVBOB enables them to comply finance, computer and business skills as well as

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Follow: Morné Scholtz @ www.linkedin.com/in/morn%C3%A9-scholtz-emba-a250662a www.linkedin.com/in/tracey-gilmore-822b9033 Tracey Gilmore @

personal counselling and development. TCB’s mission is to enable South Africans to end the cycle of poverty in their families.

Since 2010, TCB has diverted more than 20.9 million items from landfills, helping participants generate R500-million in profits.

TCB’s co-founder and COO, Tracey Gilmore, says: “We address each participant’s head (knowledge), heart (mental health) and hands (practical experience) to facilitate successful self-employment. This holistic approach, combined with peer support and hard work, often transforms unemployed individuals into confident business owners.”

EXPANDING OPPORTUNITIES THROUGH THE SBA GROWTH INITIATIVE Stellenbosch Business School’s Small Business Academy (SBA) operates across three provinces, supporting small businesses through: • SBA Development Programme: a nine-month initiative in the Western Cape, Northern Cape and Eastern Cape, featuring pro bono one-on-one mentorship by alumni.

• SBA Growth initiative: ongoing workshops, masterclasses, advanced training, mentorship and networking for SBA alumni and start-ups.

• Student engagement: local and international business students assist SBA entrepreneurs as part of their academic programmes.

SBA Research Unit: studies the impact of SBA programmes, mentorship and small business development in Southern Africa.

TESTIMONY BY QIQA NYANGIWE “Joining TCB was a game-changer. I can now put food on the table without worrying about empty cupboards, gaining a level of independence I never thought possible. More importantly, I can support my children and family in ways I couldn’t before.

“TCB didn’t just provide income; it taught me the skills to manage a business. Although challenges arise, I now have the knowledge and confidence to tackle them. The profits from selling TCB clothing have allowed me to join two stokvels, and I’ve secured a dedicated stall for my clothes. I’m already planning my second business venture.”

SOCIAL IMPACT

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BUIL DING S OCIE T Y

The target date for the National Development Plan 2030 goals is around the corner. THANDO PATO speaks to corporates in the banking and retail sector to find out how they are contributing to its realisation

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he Foschini Group (TFG) – supplier development one of South Africa’s largest (ESD), providing critical and most diversified retail funding, mentorship and groups – is at the forefront market access to emerging of driving economic growth, black-owned businesses. job creation and industrialisation The company spent over – critical National Development R1.1-billion with small Plan (NDP) pillars, says Anthony black-owned exempted Thunström, CEO of TFG. micro enterprises and TFG, he says, “is a pioneer in qualifying small enterprises, Anthony Thunström the reindustrialisation of South directly fostering inclusive Africa’s apparel manufacturing economic growth and sector, bringing production closer to home and diversification within South Africa’s retail creating sustainable employment”. supply chain, says Thunström.

In line with the NDP’s call for local value chain development, 79.2 per cent of TFG’s apparel BANKING AND THE NDP units are now manufactured in South Africa Nedbank, one of South Africa’s big four and neighbouring SADC countries. In addition, banks, says its primary focus areas related TFG owns and operates 12 manufacturing to the NDP include infrastructure development, facilities across the country, helping revive local sustainable finance, financial inclusion, human industries. With the help of its Quick Response settlements, affordable housing, supporting manufacturing model that enables shorter small, medium and micro enterprises production lead times, TFG is assisting local (SMMEs) and broad-based black industries to compete with global supply chains. economic empowerment.

CREATING EMPLOYMENT OPPORTUNITIES

INFRASTRUCTURE DEVELOPMENT

A leader in South Africa’s employment drive in the retail and manufacturing sector, TFG, in 2024, created 2 381 jobs and workplace opportunities with a focus on entry-level retail roles, supply chain and manufacturing. TFG Manufacturing currently employs over 3 000 people, contributing directly to industrial job creation and reducing South Africa’s reliance on imports.

“Through the Youth Employment Service programme, TFG has invested more than R100-million, providing over 2 300 young people with first-time employment opportunities since the programme’s inception,” explains Thunström.

With infrastructure development one of the key goals of the NDP, Nedbank is creating a positive investment environment and facilitating key project deals. “Through our sustainable development finance (SDF) strategy, the bank has committed to allocating at least 20 per cent of its gross loans and advances toward sustainable projects by 2025, with R145-billion already invested in SDF projects by 2023,” says a Nedbank spokesperson.

Nedbank’s key contributions toward infrastructure development include:

ENTERPRISE AND SUPPLIER DEVELOPMENT TFG’s commitment to small business development is demonstrated through its R74.5-million investment in enterprise and

• Providing over R3.5-billion in private power generation funding, significantly boosting South Africa’s renewable energy sector.

• Remaining a leading funder of the Renewable Energy Independent Power Producer Procurement Programme, funding 4GW of projects across 50 initiatives.

• Engaging with over 120 climate-sensitive clients to support their sustainability and emissions reduction efforts.

SUPPORTING SMMES Nedbank recognises SMMEs as a key driver of economic growth and job creation. A Nedbank spokesperson says the bank has implemented several financial and advisory initiatives to support small businesses, including: • ESD programmes, including the Proud of My Town initiative and the Youth Entrepreneurs Programme.

• Tech-enabled banking solutions to lower barriers to entry for small and medium enterprises.

• Partnerships with organisations such as the Township Entrepreneurs Alliance (TEA) to provide business skills and financial support.

“In 2023, we completed the first season of our Kasi business workshops with 15 workshops held in collaboration with TEA. The workshops were attended by 23 641 individuals, prospective businesses, start-ups and businesses, with 47 per cent female representation recorded. The TEA workshops were also broadcast across social media platforms, garnering 71 461 online views,” says the Nedbank spokesperson.

PROVIDING AFFORDABLE HOUSING Access to adequate housing is a key challenge, given lingering backlogs in the provision of housing amid steadily rising demand. To help address this issue, in 2023, Nedbank approved R1.9-billion in funding for the development of affordable housing for lower-income households. “Nedbank also actively supports South Africa’s housing sector by offering innovative financing solutions across affordable, middle- and upper-income housing,” says the spokesperson.

“THROUGH THE YOUTH EMPLOYMENT SERVICE PROGRAMME, TFG HAS INVESTED MORE THAN R100-MILLION, PROVIDING OVER 2 300 YOUNG PEOPLE WITH FIRST-TIME EMPLOYMENT OPPORTUNITIES SINCE THE PROGRAMME’S INCEPTION.” – ANTHONY THUNSTRÖM

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BRINGING THE NATIONAL DEVELOPMENT PLAN TO LIFE

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WORKING TOGETHER TOWARDS A HUNGER-FREE SOUTH AFRICA Creating a country where no one goes hungry requires partnerships across different sectors of society, writes ELRIZA THERON

F

ood security is a fundamental part of Human Sciences Research Council (HSRC) humanity. Whether at a household level show that nearly 20 million citizens are under or on a national scale, it is a global priority threat from food insecurity and food waste that extends far beyond just agriculture. exacerbates the problem. Woolworths notes This is why zero hunger is the second that about 30 per cent of the food produced United Nations Sustainable Development globally goes to waste and recognises that, as Goal and why it dominates policy a retailer, it plays an important role in working discussions globally. towards a food-secure future.

South Africa is no different, and many “With millions facing the threat of hunger stakeholders are doing their part to work in our country every day, the need to improve towards a hunger-free nation. One of the food security in South Africa is urgent. We do companies leading the charge in this regard this in three major ways: we donate our surplus is undoubtedly Woolworths, which, through food to those who need it most, we support its Good Business Journey launched in 2007, several local nongovernmental organisations – has had a remarkable impact on food security each of which empowers communities to grow initiatives in the country. These initiatives more food and build livelihoods,” says Zinzi range from partnerships with FoodForward Mgolodela, Woolworths director of corporate SA to helping under-resourced schools and social justice. communities gain the skills they need to grow One of the company’s key partners is their own healthy, nutritious food through the FoodForward SA, a nonprofit organisation EduPlant programme. that recovers edible surplus food at various In 2011, the Woolworths Limited Holding stages of the food value chain and redistributes group was named one of the it to communities in need countrywide.

16 sustainability champions FoodForward SA was in the developing world by established in 2009, and in the World Economic Forum. the 2023/2024 financial year Although the company’s alone, it distributed 87 million sustainability initiatives meals at a cost per meal of extend far beyond food only R0.47. security, its impact in this “Food security is a area is also noteworthy, with significant challenge, and the company investing over it won’t be solved by one R26-million over the past five organisation acting alone. years in projects designed Strong partnerships and to empower communities synergies are key to putting to grow their own food and an end to hunger. The become more self-sufficient. organisations we partner with In South Africa, recent help us make a difference. In Zinzi Mgolodela figures released by the partnership with FoodForward

“FOOD SECURITY IS A SIGNIFICANT CHALLENGE, AND IT WON’T BE SOLVED

BY ONE ORGANISATION ACTING ALONE. STRONG PARTNERSHIPS AND SYNERGIES ARE KEY TO PUTTING AN END TO HUNGER.” – ZINZI MGOLODELA

SA, Woolworths donated R816-million worth of quality, edible surplus food to under-resourced communities in the past year. The food donated

by Woolworths equated to 56.6 million meals for a network of 2 500 organisations, providing fresh food to 920 000 vulnerable people across the country,” adds Mgolodela. In addition, Woolworths has established a system of diverting its surplus food to needy communities via structured charity organisations, totalling over R485-million worth of food over the past year.

LEVERAGING TECHNOLOGY Another significant initiative to address food waste is the OneFarm Share platform, powered by Standard Bank and HelloChoice.

The platform acts as a digital matchmaker, connecting food requests from registered charities to available fresh produce from local farmers and markets. Charities list their food needs, which are aggregated by the platform.

The produce is then sourced from commercial or smallholder farmers, food processors and produce markets and transported via distribution partners to the necessary charities.

To date, the platform has contributed 21 289 tonnes of fresh produce, translating to 1.2 million people being fed regularly across 2 700 charities by 547 programme contributors nationally.

Commenting on the motivation behind the development of the platform, Grant Jacobs, the Director of OneFarm Impact and HelloChoice, says he is driven by the urgent need to build a food-secure future that enables our children and communities to thrive. “By leveraging technology and synergising our combined efforts we can make this future a reality,” he says.

It doesn’t stop there; many on-farm and community initiatives are also undertaken, such as the Living Soils Community Learning Farm, launched by Woolworths in partnership with Spier Wine Farm and the Sustainability Institute.

The farm is a learning farm that aims to develop long-term food security for the local community and help address unemployment.

Learners are taught how to use sustainable farming methods to grow nutritious food at the farm near Stellenbosch. Another example is the Woolworths Trust, which, along with

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F OOD SECURI T Y

“WE UNDERSTAND THE IMPORTANCE OF FOOD SECURITY, WHICH IS WHY A MAJOR FOCUS FOR US IS TO ENSURE THE PEOPLE INVOLVED IN PRODUCING OUR FOOD HAVE ACCESS TO ADEQUATE TRAINING AND EDUCATION OPPORTUNITIES.” – ELISE-MARIE STEENKAMP

Hortgro regularly hosts students, agri workers and new growers at field days and seminars to introduce them to the industry and share relevant technical knowledge.

Food & Trees for Africa, helps under-resourced schools and communities to grow their own food through the EduPlant programme. This programme has contributed to hundreds of food gardens being planted.

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IMPROVING LIVES Training in sustainable agricultural practices is vital in the journey towards a food-secure South Africa. Numerous initiatives address this need, such as those led by the South African deciduous fruit industry body, Hortgro. Hortgro regularly hosts students, agricultural workers and new growers at field days and seminars to introduce them to the industry and share relevant technical knowledge. One of the organisation’s goals is to improve the lives of everyone in agricultural communities as they are the people who ensure our food security. Hortgro does this through several programmes, including its mentor and internship programme, management programme, young industry leaders programme and bursary programme.

The bursary programme is designed to assist students pursuing careers relevant to the deciduous fruit industry, including agricultural sciences, horticulture, business management and environmental sustainability. It offers a range of benefits, including full or partial coverage of tuition fees, a stipend for study-related expenses and opportunities for practical experience through internships and mentorships with leading industry professionals. Over the past decade, the organisation has spent more than R55-million on bursaries.

The internship programme, on the other hand, places students from technical and vocational education and training colleges and technical universities into in-service training opportunities on farms, packhouses, nurseries and other agricultural sites, providing them with a platform to complete their studies and graduate. A key component of the model is the strong mentorship focus, ensuring students feel supported, can develop and become part of

the team. “At Hortgro, we understand the importance of food security, which is why a major focus for us is to ensure the people involved in producing our food have access to adequate training and education opportunities,” says Elise-Marie Steenkamp, group manager for communications.

The organisation also contributes to the Fruit Workers Development Trust, the beneficiaries of which are permanent workers on fruit farms. The trust’s objectives include education, training, skills development, job creation, health and welfare, medical expenses, social interaction and the overall improvement of the quality of life of the beneficiaries.

Although the country still faces numerous challenges on the journey towards a food-secure South Africa, these initiatives demonstrate the commitment of those involved in food production towards the cause and should serve as motivation for more stakeholders to get involved.

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THE

TOWNSHIP ECONOMY Published in August 2025

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S T R AT EGIC CORP OR AT E S OCI A L IN V ES T MEN T

IS STRATEGIC CSI DEAD?

Hortgro impacting the agri-sector.

Read more on page 20.

TCB’s Resell, Repair and Remake programmes. Read more on page 11.

Medihelp’s MyWalk project.

Read more on page 10.

Mr Price Foundation focuses on youth employment. Read more on page 28.

With the trend towards trust-based philanthropy gaining momentum globally, the architect of “strategic philanthropy” as a concept has declared it dead. In this article, first published in The Trialogue Business in Society Handbook 2024, CATHY DUFF, director at Trialogue, unpacks the arguments for why it has failed and reconfirms Trialogue’s commitment to strategic corporate social investment

I

n 2002, Michael Porter and Mark Kramer published the seminal article “The Competitive Advantage of Corporate Philanthropy” in the Harvard Business Review (HBR). The article argued that corporate philanthropy could be aligned with business interests to create a competitive advantage.

Rather than reactive giving, the authors recommended aligning philanthropy with business strategy and leveraging company resources and capabilities for social good to create a synergy between corporate success and societal improvement.

The pair went on to author the 2011 HBR article “Creating Shared Value”, which argued that companies should move beyond corporate social responsibility (CSR) and gain a competitive edge by simultaneously improving their economic value and addressing societal needs. They explained that companies can create shared value in three ways: reconceiving products and services to address social needs, redefining productivity in the value chain in ways that benefit society, and

strengthening the local business environment by investing in infrastructure, education and technology that benefit both the company and the community. The shared value approach speaks to shifts in a company’s business model – its products and services and how it operates – rather than just its philanthropy or social investment.

Also in 2011, Kramer and co-author John Kania introduced the concept of “Collective Impact” in an eponymous article in the Stanford Social Innovation Review (SSIR), arguing that large-scale social change requires broad cross-sector co-ordination, rather than isolated interventions by individual organisations. Such collaboration requires a common Cathy Duff agenda, shared measurement

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FOR CSI TO BE STRATEGIC, IT HAS TO BE ALIGNED WITH AND CREATE VALUE FOR THE COMPANY – VALUE THAT GOES FURTHER THAN MERE REPUTATION BENEFITS. systems, mutually reinforcing activities, continuous communication and, importantly, a backbone support organisation to manage the initiative.

WHERE STRATEGIC PHILANTHROPY WENT WRONG Fast forward to 2024 and Kramer – the thought leader who mainstreamed the concepts of strategic philanthropy, shared value and collective impact – together with Steve Phillips published the article “Where Strategic Philanthropy Went Wrong” in the SSIR’s summer edition titled “Strategic Philanthropy Has Failed: What’s Next?” In the article, Kramer and Phillips define strategic philanthropy as “philanthropic initiatives intended to create lasting solutions to societal problems” and argue that because we have not seen significant improvements in any social indicators and social issues are in fact deteriorating, this type of philanthropy has failed. They purport this is largely because funding nonprofits does not significantly shift the system and can never reach the scale required to move the needle on social indicators.

They go on to propose a more effective form of philanthropy, which they call “empowerment philanthropy”. This approach involves empowering people and communities more directly through direct cash transfers, universal basic incomes or peer support programmes.

They also argue that only governments can effect social change and, as such, philanthropy

should consider influencing the political system. One recommendation is to support voter education and activation to get people to register and vote so politicians are more representative of what people want and held more accountable. As evidence to support this, they cite the fact that countries with progressive governments have the highest “social progress” rankings. They also mention that another way of influencing a government is through lobbying but note that in the US, charitable foundations are barred from doing this.

... AND WHERE IT WENT RIGHT There have been numerous responses to the SSIR article, many of them disputing its conclusions. Phil Buchanan at the Centre for Effective Philanthropy argues there is no single approach to philanthropy, and different approaches make sense in different circumstances and for different types of donors.

He also notes that funding communities directly or supporting voter engagement is part of a strategy, so would still be considered strategic philanthropy and in no way undermines the concept of strategic philanthropy.

Rhodri Davies, a philanthropy commentator, also raises the point that there are multiple approaches to philanthropy. In particular, he highlights that trust-based philanthropy – where funders provide unrestricted, flexible funding and reduce administrative burdens on grantees – can be highly effective.

High-profile philanthropists MacKenzie

Scott and Melinda French Gates have taken just such a trust-based approach and are inspiring others to adopt more equitable approaches too.

Davies stresses that the success or failure of philanthropic initiatives often depends on the specific context in which they are implemented and provides examples of philanthropic initiatives that have successfully shifted systems.

Similarly, in their rebuke article in the SSIR, “Strategic Philanthropy is Alive and Well”, Jodi Nelson and Fay Twersky provide examples of where philanthropy has shifted systems.

They cite the Bridgespan Group’s HBR article “Audacious Philanthropy”, which provides case studies of 15 social movements that achieved life-changing results, such as virtually eradicating polio globally, ending apartheid in South Africa and establishing the universal 911 service in the United States, most of which were supported by some form of philanthropy.

Nelson and Twersky’s summary reply to authors Kramer and Phillips: “You have sounded the death knell of strategic philanthropy prematurely and without compelling evidence.”

STRATEGIC CSI IS VERY MUCH ALIVE The key assumption made by Kramer and Phillips is that strategic philanthropy sets out to have an overarching positive societal impact. Does it and is this realistic in the first instance? We know that poor government policy and action have a much vaster influence on social conditions than philanthropy can ever have. It is obvious, based not only on the relative amounts spent, but also because philanthropic programmes operate out of the system without any direct social mandate. So, showing that social conditions do not respond to philanthropic spend is not surprising to us, or indeed any foundation or company. It certainly does not mean that philanthropy is ineffective.

We agree with the authors that solely funding nonprofit projects is not going to change things

DAVIES STRESSES THAT THE SUCCESS OR FAILURE OF PHILANTHROPIC INITIATIVES OFTEN DEPENDS ON THE SPECIFIC CONTEXT IN WHICH THEY ARE IMPLEMENTED.

24 S O C I A L I M P A C T

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IMAGES: FREEPIK.COM, SUPPLIED

S T R AT EGIC CORP OR AT E S OCI A L IN V ES T MEN T

at scale and, to the extent possible, corporate social investment (CSI), or philanthropy, should try to influence government systems and leverage government funds. However, we propose that this can be done not only through advocacy and voter education, but also by innovating and testing solutions, doing research and then using the knowledge to influence policy and practice more broadly. Another approach could be directly supporting research and policy work, or indeed working in/with the system on collective impact approaches.

As many other respondents to the article have argued, there are plenty of examples of where philanthropy has shifted the system – either through one of the means proposed by the authors (direct transfers, voter education) or by supporting advocacy, mass movements or innovation.

We would argue that strategic CSI is a fundamentally different proposition from what is defined as strategic philanthropy in the article. Whereas they see the history of philanthropy as a “placebo” – or diversion from the ills of the system that enable excessive profits in the first instance – we are seeing evidence that strategic CSI is integral to the business and a means of reinforcing the organisation’s overall social impact.

For CSI to be strategic, it has to be aligned with and create value for the company – value that goes further than mere reputation benefits, either through enhanced stakeholder relationships with key business stakeholders (suppliers, customers, consumers or employees) or through mechanisms that lead to competitive advantage (lower costs, access to scarce skills or new markets).

Alignment allows the business to leverage internal resources and relationships to increase developmental impact, often at a fraction of the cost that would otherwise apply. For example, a telecommunications company could use its networks to connect beneficiaries or allow free messaging on social issues, a healthcare company could leverage its resources to support indigent patients or a logistics company could use its networks to distribute social products. And they could all do this at a much lower cost than a funder without the internal assets and competencies.

Ultimately, CSI that is strategic is more sustainable as it will not be the first thing to be cut when profits are down as there is company value dependent on it. From the time of the 2002 HBR article, which resonated strongly with the work that Trialogue was doing,

LEVERAGED CSI BUILDS ON A STRATEGIC APPROACH BY SEEKING TO INFLUENCE A BROADER DEVELOPMENTAL LANDSCAPE OR SYSTEM. Trialogue has advocated for strategic CSI. We used our research and experience supporting companies with their CSI strategies to develop the CSI Positioning Matrix, which enables companies to determine which of the four approaches to CSI their projects fit (charitable, developmental, commercial or strategic) and what shifts are required to make their work more strategic.

We also launched the Strategic CSI Award in 2014 to celebrate a single project each year that effectively demonstrates the principles of strategic CSI. Each of the award-winning projects since shows how valuable they are, not only to society, but also to the company – even if they do not result in systemic change.

On the back of our advisory work and the project case studies from the awards, we offer a strategic CSI masterclass.

THE FUTURE OF CSI IS LEVERAGED As with philanthropy, there are different approaches to CSI and no one size fits all.

Trialogue positions CSI programmes broadly across three categories, namely charitable CSI (CSI 1.0), strategic CSI (CSI 2.0) and leveraged CSI (CSI 3.0). There is space for all three types of CSI within a company’s portfolio, and the combination will depend on the company’s business strategy, stakeholders and context, appetite for risk and approach to development, among other elements.

We have witnessed and encouraged a broad shift from more reactive giving in CSI 1.0 to more strategic giving, with many companies now allocating a significant portion of their budgets to strategic programmes.

Leveraged CSI builds on a strategic approach by seeking to influence a broader developmental landscape or system. This can be achieved by funding research, advocacy or through collaborative and collective impact investments within a chosen developmental field.

The approach requires a shift from a symptomatic project-focused mindset to investing in structures and processes that aim to solve longer-term systemic or

structural deficiencies. It is likely to be effective in instances where companies have acquired a deep understanding of a developmental context and have relationships with influential stakeholders. It requires investment in collaboration itself, which may not always show immediate or obvious outcomes, as well as a consideration of longer-term and more flexible styles of giving.

Initial interest in this approach is coming from companies with larger budgets that have ambitions for more substantive change. The downside is that this approach is complex and takes a long time with positive outcomes for beneficiaries not immediately visible. This means it will not be a preferred approach for some companies, many of whom have shorter funding cycles and pressure to demonstrate immediate results.

In conclusion, Trialogue believes strategic philanthropy is very much alive. Our view is that companies need to be strategic with their giving by aligning their CSI strategy with the business. The government holds the primary mandate for development.

With CSI funding amounting to only a fraction of government developmental budgets, CSI cannot realistically be expected to transform the developmental landscape.

However, by leveraging corporate capacity, knowledge and relationships through innovative and aligned initiatives, CSI can deliver a far greater impact relative to its budget size than one might expect.

READ MORE: • The Trialogue Business in Society Handbook 2024 • “The Competitive Advantage of Corporate Philanthropy”. Harvard Business Review 2002.

• “Audacious Philanthropy”.

Harvard Business Review 2017.

• “Where Strategic Philanthropy Went Wrong”. Stanford Social Innovation Review 2024.

• “Strategic Philanthropy Is Alive and Well”. Stanford Social Innovation Review 2024.

• Rhodri Davies’ Blog.

• “CSI 3.0: The evolution of corporate social investment”.

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TRIALOGUE 2024 RESEARCH FINDINGS AT A GLANCE CSI EXPENDITURE TOTAL ESTIMATED CSI expenditure in 2024

R12.7 billion

7.5% increase from R11.8 billion in 2023

55% TOP THREE CONTRIBUTING SECTORS

1

BASIC MATERIALS (mining, water, forestry, chemicals)

2

CONSUMER SERVICES (retail, media, travel and tourism)

3

FINANCIALS (banks, insurance, real estate, financial services)

NON-CASH GIVING GROWING 55% of companies gave products, services, volunteering time or a combination of these

CSI MANAGEMENT Managed at least some of their CSI internally Had a separate legal entity for at least some of their CSI

75% CSI STRUCTURES

45%

STRONG ALIGNMENT TO BUSINESS

78% of companies have a CSI strategy that is very much aligned with the overall business strategy, 21% are somewhat aligned

MEDIAN: CSI EMPLOYEES

3

stayed the same

25%

decreased

85% of NPOs received non-cash donations

20%

MEDIAN SOCIAL INVESTMENT:

R29m

TRIALOGUE CSI RESEARCH FINDINGS AT A GLANCE FOCUS AREAS

Companies supported an average of five sectors

EDUCATION 45% of CSI spend

Supported by 92% of companies

Only half of companies had a stated policy on M&E

increased

Non-cash giving constituted 29% of CSI expenditure

24

20

CSI SPEND 55% INCREASING

15%

SOCIAL AND COMMUNITY DEVELOPMENT Supported by 75% of companies

11%

MOST SUPPORTED DEVELOPMENT SECTORS:

9%

HEALTH

Supported by 36% of companies

FOOD SECURITY AND AGRICULTURE

Supported by 67% of companies

83% of companies and 72% of NPOs did not support the election process.

Staff and community election awareness was supported by the remainder.

FOCUS AREAS

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T RI A L OGUE 2024 RESE A RCH F INDING S

CSI PROJECTS 31% less than 10 CSI projects

EXIT STRATEGIES

69% more than 10 CSI projects

MANY PROJECTS SUPPORTED 69

56%

31

SUPPORTED THREE OR MORE FLAGSHIP PROJECTS

Companies spend 61% of their CSI budget on flagship projects Of which

13% supported over 100 projects

39%

of companies have exit strategies for all their CSI projects

19%

for flagship projects only

32%

no exit strategies

63% partnered with NPOs to implement their flagship projects, 37% designed and implemented projects themselves

TOP CSI COMMUNICATION CHANNELS Social media (88% of companies) Company annual report (85%) Company website (84%)

COMMUNICATION OF CSI SUPPORT FOR NPOs

93% of companies supported NPOs SOURCE: THE TRIALOGUE BUSINESS IN SOCIETY HANDBOOK 2024 WWW.TRIALOGUE.CO.ZA/BUSINESSINSOCIETYHANDBOOK

71% OF CSI EXPENDITURE WENT TO NPOs

CAPACITY BUILDING

70%

OF NPOs RECEIVED INCOME FROM SOUTH AFRICAN COMPANIES. Corporate funds accounted for 30% of NPO income. NPOs had funding relationships with a median of five South African companies.

Companies offered an average of two types of capacity-building activities to NPOs. NPOs received an average of two types of capacity building.

Most common types of support: Workshops and training (41%), mentorship (28%) and academic programmes (21%).

39% of companies did not offer any capacity-building support to NPOs. 37% of NPOs did not receive any such support.

Companies offered

FOUR TYPES OF EMPLOYEE INVOLVEMENT INITIATIVES on average

Most common types

95%

Company-organised volunteering initiative

71%

Fundraising/ collection drives

63%

Time off for individuals during work hours

VOLUNTEERING SOCIAL IMPACT

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Did you know?

According to South Africa’s 2024 mid-year population estimates, about 21 million young people account for 33.1 per cent of the country’s population, underscoring their significant role in shaping the nation’s social and economic landscape.

Source: Statistics South Africa

THE TINTSWALO DILEMMA

Despite gradual improvements in higher education attendance, Stats SA’s report painted a grim picture of enrolment in technical and vocational education and training colleges.

The numbers dropped 0.8 of a percentage point (from 6.9 to 6.1 per cent), and adult education and training participation fell to 0.04 from 1 per cent.

Can South Africa’s youth find real opportunities? PRIVATE SECTOR JOINS THE FIGHT

Corporate social investment (CSI) is a for companies going beyond Once a symbol of hope in President Ramaphosa’s State of the Nation Address, consideration normal business activities and actively the story of “Tintswalo” has come to represent the struggles of millions improving the lives of the disadvantaged.

Mr Price Foundation focuses on youth of young South Africans searching for jobs. As unemployment rates climb, employment via skills development, corporate and nonprofit initiatives offer skills training and internships – but entrepreneurship and education. Established the challenge remains: how do we create sustainable opportunities, asks as a nonprofit organisation (NPO) in 2005, the MARCHELLE ABRAHAMS foundation has successfully run three flagship programmes: JumpStart, UpLift and EduRise.

Referring to the country’s eight The Tintswalo analogy million unemployed youth, Mr hen Slindokuhle Khoza heard returned to haunt the Price Foundation executive President Cyril Ramaphosa was president that day in Orange director Octavius Phukubye says visiting Orange Farm in April last Farm when a distraught it prioritises vocational skills, year, she joined the ANC’s election Slindokuhle Khoza implored internships and entrepreneurship campaign, hoping someone would him for a job. “as investment focus areas”. help her find a job.

Under the JumpStart curriculum, The BA Communications graduate from trainees are introduced to North-West University struggled to find work YOUTH UNEMPLOYMENT RATES retail frontline, retail essentials, since graduating in 2022. Desperate to help Every unemployed young warehousing basics, production her unemployed mother, Khoza approached person sees themselves in and professional manufacturing.

Ramaphosa. His response was far from what Slindokuhle Khoza: hopeless, “These programmes blend she expected and went viral on social media for desperate and despondent.

Octavius Phukubye industry-specific theory, work obvious reasons.

Defined as the age experience and life skills to prepare youth He asked if she was looking for work and she category between 15 and 34, South [matric and post-matric minimum qualifications] replied “Yes” and was searching online. The Africa’s youth comprise nearly a third of the to be ready for the workforce on day one,” following words divided South Africans: “You population. Statistics South Africa (Stats SA) explains Phukubye. must keep searching.” reveals that young people who found jobs The foundation has also found a way to Months before, Ramaphosa delivered his dropped by 2.8 percentage points from bridge the talent gap. Phukubye explains that State of the Nation Address (SONA). Attempting 30.5 per cent in 2014 to 27.7 per cent in 2024. the NPO collaborates with human resources to inspire, he spoke of Tintswalo, a woman Young people actively looking for work and operations departments of employer born at the dawn of democracy whose life but unable to find it climbed from partners to assess industry skills gaps and changed for the better thanks to the ANC’s 36.8 per cent in 2014 to 45.5 per cent estimate skills growth requirements. government’s achievements. in 2024.

IMAGES: FREEPIK.COM, SUPPLIED

W

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YOU T H

Afrika Tikkun provides education, health and social services to disadvantaged communities within South Africa, through its nine centres across the provinces.

“To ensure training programmes are agile and demand-led, we use technology infrastructure to integrate data resources for a continuous talent matching systematisation,” adds Phukubye.

SUCCESS STORY Sandile Bhengu started his Mr Price journey via the JumpStart programme. The assistant store manager at Mr Price Home in Galleria Mall, Durban, was unemployed for six years after matriculating in 2009.

“It was a long six years. I applied for many jobs and training, but nothing came through,” recalls Bhengu. “Since I did JumpStart in 2016, life has improved a lot for me. It helped me get a job at Mr Price. It allowed me to make improvements in my home. I can do many things now because I have a job.”

Herein lies the foundation’s magic formula.

Many of its success stories are innate to the foundation’s goals to arm young people with relevant skills and put them in real-world situations via internships.

Phukubye says: “Internships are well-structured and include clear objectives, mentorship and skills training. We facilitate these internships through relevant business partnerships, placement and support, workplace readiness and evaluation and feedback from interns and employers.”

The foundation’s partners include Mr Price, Mr Price Sport, Mr Price Home, Sheet Street, Miladys, Power Fashion, Yuppie Chef, Studio 88 and SPAR.

IMAGES: FREEPIK.COM, SUPPLIED

CALL TO ACTION Afrika Tikkun was founded in the infancy of democracy in 1994. A social impact organisation focused on child and youth development, the nongovernmental organisation (NGO) was recently awarded the 2025 CSI Legacy Award Best NGO Winner.

The organisation provides education, health and social services to disadvantaged

access to quality education, skills and social services, which can bolster them into becoming economically and socially independent,” it says.

Among its suggestions, Afrika Tikkun calls for social development programmes with economic opportunities to create sustainable and practical solutions and innovative funding mechanisms to support youth entrepreneurship and small business development.

Mr Price Foundation’s education programme EduRise.

communities with the primary goal of creating a sustainable future through economic and social empowerment of South African youth.

Some of its biggest initiatives are the Cradle-to-Career 360° programmes. The model encompasses a holistic approach to child and youth development, offering support from early childhood to career readiness.

Its Youth Accelerator Programme supports young adults (18–21) as they transition to independence. Fostering personal growth, decision-making skills and career readiness, the platform provides the tools and knowledge to fast-track their aspirations.

On the back of the 2025 Budget Speech, Afrika Tikkun expressed concerns over critical challenges facing the youth and marginalised communities. “We echo the sentiment that access to equal, quality education, healthcare and skills is not a privilege but a basic human right,” says the NGO. Nqobile Simelane, head of fundraising, marketing and communication at Afrika Tikkun, adds that the organisation extends its heartfelt gratitude to its valued partners and donors for their unwavering support. “However, this critical work cannot be accomplished alone,” she explains. ”We invite corporates and the business sector to join forces with us, leveraging collective resources to create lasting change.”

The NGO notes that sustainable solutions must be found to create gainful employment opportunities.

“Afrika Tikkun cannot over-emphasise the imperative need for partnerships and collaborations across sectors to ensure that our youth, in particular, are enabled and given

Follow: Mr Price Foundation @

@Mr Price Foundation

CHALLENGES REMAIN At its core, Mr Price Foundation is a nonprofit organisation, meaning funding is never guaranteed.

“Securing consistent funding remains a challenge as limited resources restrict internship opportunities and impact,” says Phukubye. He explains that the more funding the foundation gets, the more internships it can create.

Thankfully, Phukubye says the foundation has overcome funding challenges by “constantly innovating, being beneficiary-centric, demand-led and impact-driven in skills development programmes”.

On its plans to scale, Mr Price Foundation is excited about the possible expansion of the JumpStart programme into other sectors such as tourism, agriculture and business process outsourcing.

“On the entrepreneurship side, the plans include launching a range of youth entrepreneurship programmes that will offer innovative funding, market access routes and tailored investment readiness support,” says Phukubye.

For Afrika Tikkun, however, the fight for equal access to education is far from over. It urges “a comprehensive review of education funding models to ensure they align with actual needs and demographic realities”.

As for Tintswalo, being born at the dawn of democracy means nothing without a job and a steady income. Millions of Slindokuhle Khozas out there are asking the business sector to take a chance on them.

The silver lining is that many more companies and advocacy groups, such as Mr Price Foundation and Afrika Tikkun, are heeding the call to empower South Africa’s youth with the skills needed to make a decent living with dignity and purpose.

@mrpricefoundation

www.linkedin.com/company/mrpricefoundation Follow: Afrika Tikkun @ @AfrikaTikkun

@afrikatikkun

@Afrika Tikkun Services

www.linkedin.com/company/afrikatikkun

YouTube: @AfrikaTikkunFoundation

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GENDER EMP OW ERMEN T

DRIVING GENDER-INCLUSIVE GROWTH STANLIB’s profound conviction is rooted in the belief that gender equality is not just a social imperative, but also a driver of financial performance, writes MARCHELLE ABRAHAMS

L

ast year’s theme for Women’s Month was “Celebrating 30 Years of Democracy Towards Women’s Development”. It served as a testament to the resilient strides women have made since the inception of our democracy. Despite the inroads made, disparities still exist, highlighted in Stats SA’s Gender Series Volume XI: Women Empowerment, 2014–2024 report.

The report states that women are more likely to face unemployment and less likely to participate in the labour force compared to their male counterparts.

According to Stats SA, management roles in the public sector are predominately held by men. Female representation has improved, but only in middle management.

AFRICA AT THE FOREFRONT OF GENDER-INCLUSIVE GROWTH The African Union (AU) launched the Women and Youth Financial & Economic Inclusion 2030 Initiative in July 2022.

The initiative aims to unlock $10-billion for 10 million women and youth by 2030 with the help of the private and public sectors. Building on existing financial tools, the AU hopes to increase the income of women and young people by supporting entrepreneurship and advocating for parity in employment.

One way of reaching this goal is by promoting financial sector reform to make innovative financial products and services available, accessible and affordable to women. Many could argue that the framework is more aspirational than implementing it in a real-world case. The truth of the matter is that it already exists.

FINANCIAL SECTOR LEADING THE CHARGE South African asset management company STANLIB manages and administers investments for retail and institutional clients.

Did you know?

STANLIB fosters equal representation for women within the asset management industry by actively supporting mentorship programmes, networking opportunities and leadership development.

In 2021, the company took a deep dive into evaluating the influence of women on investment decision-making. It found that men involved in investment decision-making outnumber women three to one. The proportion of women chief investment officers was also low at nine per cent.

Fortunately, much has changed in the past decade. For one, STANLIB Asset Management is leading the pack in gender inclusivity in the financial market.

The company says it’s not merely an investment manager; it aims to be a catalyst for change to shape a future where women have equal opportunities to thrive, ultimately driving sustainable economic development for all.

The authorised financial services provider believes that the modernisation and development of essential infrastructure are vital for unlocking South Africa’s growth potential. This is why the STANLIB Infrastructure Fund was founded – to support and empower communities dedicated to broad-based investments across diverse sectors.

One notable project is linked to the fund’s stake in the Kouga Wind Farm, in Oyster Bay, Eastern Cape. Marisa Bester, portfolio manager, STANLIB Infrastructure Investments, explains that the initiative includes the Galaxy Scholarship Programme, which provides

“THE PROGRAMME NOT ONLY FUNDS EDUCATION, BUT ALSO OFFERS MENTORSHIP AND COACHING, SUPPORTING THE HOLISTIC DEVELOPMENT OF THESE STUDENTS AND ENCOURAGING PARTICIPATION IN EXTRACURRICULAR ACTIVITIES.” – MARISA BESTER

scholarships primarily for girls from Grade 8 onwards.

She says: “The programme not only funds education, but also offers mentorship and coaching, supporting the holistic development of these students and encouraging participation in extracurricular activities, developing well-rounded individuals ready to contribute meaningfully to their communities.”

MEASURING GROWTH The STANLIB Infrastructure Investment team measures success in driving gender-inclusive growth through various initiatives and investments.

Most of the projects it invests in prioritise community empowerment with a strong emphasis on women and youth through skills development.

Bester gives examples such as bursary schemes, reading programmes and mentorship opportunities designed to uplift communities.

In 2024, over R75-million was allocated to black women-owned businesses; R58-million was invested in enterprise development to upskill youth and women.

“Additionally, R162-million was directed towards socioeconomic development, with more than 70 per cent focused on education and skills development for young women,” adds Bester.

INTEGRATING GENDER EQUALITY INTO INVESTMENT STRATEGIES In its commitment to cultivating an inclusive investment environment, STANLIB has resolved to integrate gender equality into its overall investment strategies.

The same applies to its boardrooms. “For the investments in the infrastructure sector, over 30 per cent of directors on the boards of various investment companies are female, facilitating active engagement and the ability to drive sustainable initiatives within communities,” says Bester.

DOWNLOAD THE GENDER SERIES VOLUME XI: WOMEN EMPOWERMENT, 2014–2024 REPORT

Follow: STANLIB

www.linkedin.com/company/stanlib

@STANLIBAssetManager

SOCIAL IMPACT

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GBV From awareness to action

ADVERTISING CONTACT TARIN-LEE WATTS PROJECT MANAGER T: +27(0) 87 379 7119 C: +27(0) 79 504 7729 E: WATTST@ARENA.AFRICA

PUBLISHER PICASSO HEADLINE, a proud division of ARENA HOLDINGS (Pty) Ltd Hill on Empire 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg

Publication date: November 2025

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E A RLY CHIL DHOOD DE V EL OPMEN T

BREAKING THE CYCLE Addressing hunger and early childhood development in South Africa

For many young children, going to school hungry is not an occasional hardship – it’s a daily struggle. Persistent hunger affects mood, focus and learning ability. Addressing nutrition and early childhood education is essential for breaking the cycle of poverty. By VUKANI MAGUBANE

N

utrition and the overlooked early childhood development (ECD) sector form the foundation of a child’s future.

The first five years are critical for brain development, laying the groundwork for cognitive growth, school readiness and future economic mobility. Without proper nutrition, a child’s ability to achieve in school is severely compromised.

Chronic hunger and the underfunding of the ECD sector remain urgent challenges in South Africa, impacting the future of millions of children. To bridge the gap, organisations are stepping in to provide food and enhance early learning environments.

FEEDING THE FUTURE: KELLANOVA’S SCHOOL NUTRITION PROGRAMME

Fast fact

A UNICEF study shows that 23 per cent of children in South Africa are living in severe food poverty.

Source: 2024 UNICEF Study Child Food Poverty school week.

“It’s about enabling a child’s potential. For some, it’s the only meal they get in a day.

Hunger is dire in South Africa,” Mposelwa says. “Children perform better when they have eaten. Providing them with a meal gives many a reason to go to school – not just to learn, but also to eat.”

She adds: “It saddens me. For many, it’s the only meal of the day. It worries me – what future do these children have?”

IMAGES: SUPPLIED

“A child who is hungry will not be able to learn,” says Kellanova’s corporate affairs director Zandile Mposelwa.

Since 2014, Kellanova (formerly Kellogg’s) has been addressing school hunger through STRENGTHENING EARLY CHILDHOOD its Better Days Promise School Feeding DEVELOPMENT CENTRES Programme, donating 62 million ECD centres are meant to meals to date – an average of 7 prepare young children for future million meals per year. learning, equipping them with In partnership with the foundational skills needed for Department of Education (which formal education and future identifies the schools) and the success. However, across South nongovernmental organisation, Africa, millions of children attend FoodForward SA (which distributes under-resourced ECD centres the food), the Better Days where inadequate facilities and programme provides breakfast poor infrastructure create further cereal to 35 000 primary school barriers to escaping poverty. children in Gauteng, the Eastern The FirstRand Foundation Zandile Mposelwa Cape and KwaZulu-Natal during the (FRF) is working to enhance

“THERE IS A LACK OF AWARENESS ABOUT THE CRITICAL IMPORTANCE OF EARLY CHILDHOOD EDUCATION IN SHAPING A CHILD’S FUTURE.” – KONE GUGUSHE Follow: Kellonova @

www.kelloggs.com/en-za/home.html

@kelloggs_za

@kelloggs)_za

the performance of ECD centres, aiming to make quality early education a national priority and ensuring that every child receives the foundation they need to succeed.

Overcoming Systemic Challenges in Early Learning According to the FRF’s CEO, Kone Gugushe, the ECD sector faces multiple challenges due to neglect and underfunding.

“Firstly, there is a lack of awareness about the critical importance of early childhood education in shaping a child’s future,” she explains. “Many policymakers and stakeholders focus on later stages of education, such as primary and secondary schooling, without recognising that foundational skills are developed in the early years.”

Additionally, early childhood education requires significant investment in infrastructure, teacher training and learning resources – funding that is difficult to secure in resource-constrained environments.

“Systemic issues, such as inadequate teacher training, lack of a National Reading Plan and poor accountability at ministerial and administrative levels, exacerbate the neglect and underfunding of this crucial sector,” Gugushe adds.

INVESTING IN EDUCATORS AND LEARNING RESOURCES FRF has contributed significantly to early childhood development by partnering with organisations offering National Qualifications Framework (NQF) Level 4 training to ECD practitioners, helping them enhance their skills and competencies.

Unlike primary and secondary schools, many preschools operate without subsidies. The 2025 National Budget provided a glimmer of hope by increasing the subsidy from R17 to R24 per child per day – an important step but still insufficient.

A CALL FOR SYSTEMIC CHANGE IN EARLY EDUCATION Gugushe explains that FRF aims to be a catalyst for systemic change in the ECD sector by focusing on three key areas: • Enhancing professional development for educators.

• Providing access to quality learning materials for young children.

• Promoting mother-tongue instruction to support literacy and comprehension.

“True reform involves improving the educational pipeline at the source by investing in foundational literacy and numeracy,” she says. “Education is essential for sustainable poverty alleviation.

Learning serves as the bedrock for economic mobility and long-term societal transformation.”

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rime and the inefficiencies of the criminal justice system have been flagged as some of the biggest obstacles to economic growth in South Africa. Business leaders are increasingly stepping in to address these challenges, recognising that a safer society benefits not only individuals, but also the broader economic landscape. This is according to the Cape Chamber of Commerce’s Business Environment Survey. Jacques Moolman, president of the Cape Chamber of Commerce and Industry, explains that at a macro level, a high crime rate deters foreign investment, stifles business expansion and undermines South Africa’s global competitiveness.

THE HIGH COST OF CRIME FOR BUSINESSES

FIGHTING BACK Crime and an ineffective criminal justice system have long been identified as obstacles to economic growth in South Africa. While crime impacts businesses at every level, many companies are working to pushback against rising threats. However, as the fight against crime intensifies, are authorities doing enough to support them asks MATTHEW HIRSCH

“Rampant crime forces companies to invest heavily in security measures such as armed response, alarms, infrastructure and insurance. These costs eat into capital that could otherwise be used for growth and innovation,” says Moolman.

One of the biggest threats to businesses is extortion. The Western Cape Property Development Forum recently reported that six significant projects valued at more than R400-million have been halted this year due to extortion syndicate activity. This not only affects developers, but also has broader implications for employment and economic stability.

Moolman highlights that many businesses are actively involved in their local community police forums (CPFs) to combat crime at a grassroots level. “At an organisational level, the Cape Chamber is working with various partners to bolster crime-fighting initiatives.

One such example is our collaboration with Business Against Crime and their Eyes and Ears (E2) initiative, which facilitates real-time intelligence-sharing between private security firms, other stakeholders and the South African Police Service (SAPS).”

The Cape Chamber also directly engages with senior law enforcement officials to raise concerns about critical crime issues, particularly extortion and violent crime.

PROACTIVE ENGAGEMENT: A SUCCESS STORY IN PHILIPPI A prime example of business-led crime intervention can be found in Philippi East Industria, an area notorious for high crime rates. “The key to success in this case was proactive engagement between businesses and law enforcement,” Moolman explains.

“A group of affected businesses in Philippi identified violent crime, particularly hijackings,

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S A F E SPACES “CRIME AFFECTS ALMOST EVERY ASPECT OF BUSINESS OPERATIONS. ARMED ROBBERIES HAVE BECOME INCREASINGLY COMMON DUE TO THE PROLIFERATION OF ILLEGAL FIREARMS, AND DELIVERY VEHICLES TRANSPORTING GOODS ARE FREQUENT TARGETS.”– ANROUX MARAIS as a major impediment to operations. The Cape Chamber facilitated discussions between these businesses and law enforcement, leading to the implementation of a business patrol initiative that has dramatically reduced hijackings in the area.”

Moolman believes similar community-driven crime-fighting initiatives can be replicated in other business districts. “By harnessing the power of business networks, we can accelerate efforts to hold public services accountable and promote stability and prosperity.”

THE IMPACT OF CRIME ON SOUTH AFRICA’S ECONOMY Ian Cameron, the chairperson of the portfolio committee on police in parliament, warns that the recent surge in extortion cases is a major hindrance to business operations.

“While businesses are doing their part to protect themselves, the authorities must step up their efforts as well,” Cameron states. He points to attacks on long-distance bus company Intercape as an example of how extortion can disrupt industries beyond just traditional retail and property development.

“Businesses are forced to factor increasing security costs into their operations, ultimately passing these expenses on to consumers. This disproportionately affects poorer communities, making essential goods and services more expensive and less accessible.”

Beyond extortion, businesses are contending with rising burglary and theft rates, further increasing the cost and risk of doing business in South Africa. Cameron notes that many companies invest heavily in private security while forming local safety initiatives to protect their operations.

IMAGES: FREEPIK.COM

THE ROLE OF INTELLIGENCE-LED POLICING Cameron highlights the importance of intelligence-led policing in tackling crime effectively. “SAPS needs to enhance its detective unit to improve investigative capacity. Arresting and prosecuting the masterminds behind organised crime, rather than just their foot soldiers, will lead to a significant reduction in criminal activities targeting businesses.”

He emphasises that SAPS must reassess its crime-fighting strategy to adapt to the evolving threats faced by businesses. “It

cannot be business as usual. A proactive, intelligence-driven approach is essential.”

WESTERN CAPE’S FIGHT AGAINST EXTORTION Anroux Marais, member of the executive council for police oversight and community safety, acknowledges that extortion remains a pressing issue for businesses in the Western Cape.

“Crime affects almost every aspect of business operations. Armed robberies have become increasingly common due to the proliferation of illegal firearms, and delivery vehicles transporting goods are frequent targets,” she says.

Marais also points to the ongoing gang-related violence in some communities, which often forces businesses to shut down for extended periods. “Staff members also struggle to commute between home and work due to safety concerns. This directly impacts productivity and job security.”

BUSINESSES SUPPORTING CRIME PREVENTION Despite these challenges, Marais commends businesses for their contributions to crime-fighting efforts. CPFs play a crucial role in crime prevention, providing SAPS with valuable intelligence on criminal activities.

“Business forums that actively engage with CPFs are a vital component of crime prevention,” she says. “Companies frequently support crime-fighting initiatives by donating resources, funding security programmes and facilitating public-private partnerships.”

One such initiative is Business Against Crime Western Cape’s work in establishing victim-friendly rooms at police stations. “This partnership allows victims of crime to report incidents in a safe and dignified environment, ultimately improving the effectiveness of the criminal justice system.”

A SEAT AT THE TABLE Marais believes businesses should be more involved in shaping crime prevention strategies

at a policy level. “We are pleased to have a business representative serving on the Western Cape provincial safety advisory committee,” she says. “This committee is instrumental in providing input on the Western Cape Safety Plan, ensuring business concerns are heard and addressed.”

Additionally, she reveals that an extortion convention is being planned to bring together all stakeholders, including businesses, government and law enforcement, to develop more effective anti-extortion measures.

THE ROAD AHEAD While businesses have shown resilience and commitment in tackling crime, greater collaboration with government agencies is needed to achieve long-term success.

The E2 initiative provides a promising model for public-private co-operation, leveraging technology and intelligence-sharing to strengthen crime prevention.

Increased investment in law enforcement, improved forensic capabilities and targeted anti-corruption efforts within SAPS will also be critical in addressing crime at its root.

The message from the business community is clear: safety and security are fundamental to economic prosperity. By working together, businesses, government and law enforcement can create an environment where companies can thrive without the constant threat of crime.

A CALL TO ACTION Moolman, Cameron and Marais all agree that a holistic, community-driven approach is necessary to combat crime effectively.

“Business owners and leaders must join forces, support crime-fighting initiatives and hold public services accountable,” says Moolman.

Cameron echoes this sentiment: “A safe business environment benefits everyone – from entrepreneurs and investors to employees and consumers.”

With the private sector playing an increasingly active role in crime prevention, there is hope that South Africa can turn the tide against crime and create a more stable and prosperous business environment for all.

“BY HARNESSING THE POWER OF BUSINESS NETWORKS, WE CAN ACCELERATE EFFORTS TO HOLD PUBLIC SERVICES ACCOUNTABLE AND PROMOTE STABILITY AND PROSPERITY.” – JACQUES MOOLMAN S O C I A L I M P A C T 39

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SP ONS ORED CON T EN T

EMPOWERING COMMUNITIES, ONE PROJECT AT A TIME Air Products South Africa is deeply committed to uplifting the communities in which it operates. Through strategic socioeconomic development programmes focused on youth and education, spearheaded by its employees nationwide, the company is making a sustainable difference. By LIZETTE STOKES

Arthi Govender, chairperson of the CSI committee handing out sanitary packs at a primary school as part of the Flow campaign.

IMAGES: SUPPLIED

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outh Africa’s social development needs are vast, and Air Products South Africa has a vested interest in seeing the country grow and prosper.

Its socioeconomic development programmes leverage well-considered partnerships to stretch deep into communities within Southern Africa, thereby ensuring poor, underprivileged and historically disadvantaged people receive the assistance they desperately need.

Air Products annually spends a percentage of its net profit after tax on socioeconomic development programmes with the core focus on the youth and education. The funds are allocated to schools, clinics, nongovernment organisations and nonprofit organisations in the communities where Air Products operates.

These projects are identified and supported largely by Air Products employees at their facilities nationally and, more often than not, directly involve employees in the actual implementation.

ALLOCATION OF CSI PROJECTS Air Products’ corporate social investment (CSI) projects are structured according to a specific framework by an internal CSI committee.

The allocations are made in one of three ways: 1. Annual donations are made to each facility located across the country – the key CSI role players at each of the facilities identify projects to support with funding.

2. National organisations with whom they have built relationship over the years receive annual donations for various projects.

3. A percentage of the funds are allocated to large infrastructure development projects and used to improve facilities.

The long-term beneficiaries supported

by Air Products focus on the youth and education across different disciplines such as technology, agriculture and social services.

NATIONAL FLAGSHIP PROJECT Air Products launched its national flagship project, WitnessHappiness, in July 2016 focused on early childhood development (ECD) centres.

This project is strategically aligned with the company’s CSI strategy, and each of the participating facilities has the opportunity to identify an ECD in their community of operation to become part of the programme over a three-year cycle. A key objective of the project is to form long-term relationships with the educators and learners and make a visible difference at the centres, as well as in the broader communities. WitnessHappiness comprises various projects such as focusing on the upliftment of the educators, learners and the centres’ facilities. This year, WitnessHappiness is entering the fourth cycle of this project.

Since the launch of WitnessHappiness, there have been infrastructure projects at most of the centres. Audits are done at each of the centres to identify the most pressing refurbishment needs and funds are allocated accordingly.

Besides the infrastructure projects, Air Products’ corporate social investment committee decided on pre-determined special days for employees to visit the centres. The special days celebrated at the centres include Mandela Day, Literacy Day, World Maths Day and year-end parties. Since last year, some of the schools received assistance to make graduation a special event for Grade R learners.

Air Products’ focus is to assist where there is a need.

OTHER INITIATIVES Many schools face the challenge of access to clean water. During COVID-19, Air Products embarked on a new project to assist schools with access to this basic need. This project included the construction of wash stations to provide learners with access to drinking water. This has proved extremely effective and Air Products continues to roll this out to primary and secondary schools nationally.

One of the most recent projects, the Flow Campaign, aims to support female learners with sanitary products to boost their confidence and provide hope and dignity.

With the tagline, “Don’t let their flow stop their go”, the campaign aims to ensure learners do not miss crucial days and education opportunities at school due to their cycle.

At Air Products, it is all about making a sustainable difference in the communities in which it operates.

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BRIDGING BYTES AND BARRIERS The push for digital INCLUSION IN AFRICA

Access to the internet has become a necessity in South Africa, yet millions still face challenges in connectivity, affordability and digital literacy. We chat with the experts about innovative solutions, policy shifts and investments aimed at closing the digital gap. By ITUMELENG MOGAKI

and ICT hubs since 1999. Our collaboration with the Department of Social Development has helped over 2 000 survivors of gender-based violence (GBV) gain digital skills and re-enter society.”

She says Vodacom faces risks to its digital expansion due to infrastructure theft and vandalism. The company mitigates these risks through enhanced security measures and community engagement, including collaborations with school governing bodies and local forums. Additionally, Vodacom’s Youth Academy trains young professionals to assist with digital education initiatives.

Netshitenzhe says Vodacom has also implemented artificial intelligence-driven pricing models, such as Just 4 You (J4U) and J4U Town, to offer affordable data to low-income users. After the 2022 spectrum auction, Vodacom promised free Wi-Fi to over 8 000 public service institutions, as well as zero-rated websites for public benefit organisations. The company also supports smartphone affordability through refurbished devices, prepaid financing and subsidies.

Vodacom’s ConnectU portal offers zero-rated access to vital services such as government websites, university platforms and job-seeking resources.

EMPOWERING EDUCATION, YOUTH AND ENTREPRENEURS

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n South Africa (SA), access to the internet has shifted from a luxury to a necessity, essential for education, economic participation and social inclusion. However, millions of South Africans still face challenges in connectivity, affordability and digital literacy.

Through corporate social investment (CSI) initiatives, telecommunications and connectivity sectors companies are often reported to have initiatives towards bridging the digital divide to empower individuals in underprivileged communities to advance digital inclusion.

We spoke to industry experts to understand how their respective sectors/companies are addressing the digital divide in SA.

IMPROVING CONNECTIVITY AND DIGITAL LITERACY CHALLENGES Takalani Netshitenzhe, director of external and regulatory affairs at Vodacom SA, shares her views, outlining Vodacom’s multifaceted approach to digital inclusion, which includes

significant investments in infrastructure, digital literacy programmes and affordability initiatives.

Netshitenzhe says reliable internet access remains out of reach for many, particularly in rural areas where 4G connectivity is scarce. “Vodacom employs a combination of mobile, fibre and satellite technologies to expand access. A policy shift in March 2025, announced by the Minister of Finance, aims to reduce data costs by fifty per cent over five years and eliminate the ‘luxury goods’ tax on smartphones, which should help improve affordability.”

She says beyond infrastructure; digital literacy plays a crucial role. “Vodacom Foundation has been providing connectivity and devices to schools, early childhood development centres

Netshitenzhe says Vodacom has connected over 2 500 schools to the internet since 2018, providing ICT-equipped learning environments through its Schools of Excellence programme.

“In partnership with Microsoft, the Mzansi Digital Learning platform offers free digital skills training, addressing South Africa’s digital skills gap.”

In addition, Netshitenzhe says Vodacom’s “Code Like a Girl” initiative has trained over 8 000 young women in coding and digital skills and invested R20-million in digital literacy training for GBV survivors, aiding their economic independence.

“Vodacom also supports small businesses through its V-Hub online portal, offering resources on digital marketing and cybersecurity, and the Innovator Trust initiative, which has helped over two hundred black-owned small and medium enterprises, thirty-three per cent of which are female-owned,” says Netshitenzhe.

“ONE OF THE BIGGEST CHALLENGES TO BROADBAND INFRASTRUCTURE ROLL-OUT IS THE SLOW PERMIT APPROVAL PROCESS FROM MUNICIPALITIES.”– VUYANI JARANA

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T ECHNOL OGY She says Vodacom measures the effectiveness of its initiatives through impact assessments conducted by a monitoring and evaluation manager, refining strategies for greater community benefits.

TACKLING CONNECTIVITY CHALLENGES AT THE GRASSROOTS Vuyani Jarana, CEO of Ilitha Telecommunication, which is dedicated to expanding high-capacity broadband in townships through fibre optics and providing fixed wireless, says one of the biggest challenges to broadband infrastructure roll-out is the slow permit approval process from municipalities.

“Approvals are a lengthy process that impact project timelines, delay deployment Vuyani Jarana and ultimately hinder efforts to expand connectivity to underserved areas.”

Jarana adds: “Engaging township business chambers and small business forums also proves difficult as many local entrepreneurs lack the expertise to install fibre.”

To overcome these barriers, Jarana says Ilitha invests in training small businesses, providing them with tools, such as splicing equipment and even battery-powered drilling machines, to cope with load shedding.

Jarana believes digital inclusion requires more than just connectivity. “It requires affordable access and real skills training that empowers individuals economically. Setting up computer labs is not enough. We need broad-based internet access at affordable rates and training that enables real economic participation,” he says, adding that Ilitha supports initiatives like the Broadband Access Fund, which helps start-ups connect underserved communities.

IMAGES: FREEPIK.COM, SUPPLIED

WHAT OTHER STAKEHOLDERS ARE DOING TO MAKE A DIFFERENCE John Githinji, head of sales at Hypa, describes how the company is transforming access to connectivity with prepaid fibre that comes without contracts, installation fees or hidden costs, aiming to reach underserved and underserviced communities.

Hypa’s key initiatives include offering affordable, contract-free fibre and creating local jobs by hiring field agents, providing training, offering commissions and supporting career development.

“At Hypa, we collaborate with nongovernmental organisations and

schools to broaden our reach and build trust while running digital literacy programmes for youth, women and small businesses to help them use the internet to drive progress.”

Githinji continues: “Additionally, we offer subsidised packages to schools and learning hubs and are working to zero-rate educational and public health content, through partnerships with the government and third-party apps.”

He says they measure the impact of their efforts through user data, community feedback, adoption rates and economic indicators such as increased job applications, e-commerce activity and school attendance. “When we connect a home, we’re not just installing fibre; we’re igniting hope. Access changes everything and our mission is to ensure that no South African is left behind in the digital revolution.”

Taylor Kwong, head of marketing at Vuma, believes that connectivity will significantly drive the economy. “Our core mission is to offer affordable fibre-to-the-home packages; hence we introduced Vuma Reach, a pre-paid fibre product aimed at reducing high data costs,” says Kwong. Initially launched in Mitchells Plain, Western Cape, the service now extends to areas like Vosloorus, Soweto, KwaMashu and Tshwane, providing reliable, uncapped internet access to communities.

Additionally, Vuma has supported the GirlCode Hackathon since 2019. “In 2023, we provided infrastructure and funding to teach 300 learners from Soweto and Eldorado Park about coding. The programme has since expanded across Gauteng, reaching over 2 000 learners,” she says.

Vuma is also involved in the Gogos with Vuma initiative, a partnership with goGOGOgo that trains grandmothers in ICT skills. Focused on townships and rural areas, the programme has empowered over 200 gogos, helping them continue their essential roles in family support and education. Kwong says: “This initiative ensures equitable access to next-generation digital infrastructure for all South Africans, regardless of location.”

Commenting on the future plans and commitments needed to close the digital gap in SA, Carl Bosma, director of

Follow: Takalani Netshitenzhe @ Vuyani Jarana @

Fast facts in numbers

• Vodacom has connected more than 2 500 schools to the internet since 2018, providing ICT-equipped learning environments through its Schools of Excellence programme.

• Vuma has provided infrastructure and funding to teach 300 learners from Soweto and Eldorado Park about coding. The programme has since expanded across Gauteng, reaching over 2 000 learners.

telecommunications sector lead at BDO SA, says: “The cost of infrastructure (5G for example) is extremely expensive and the operators need to recover these costs from their customers. Then the technology changes and the operators need to invest in new technology again.

Taylor Kwong That’s why a number of the operators are separating their infrastructure from their operations and why we’re seeing the emergence of specialised infrastructure entities who then ‘rent’ the infrastructure to the operators,” he explains.

Bosma adds that digital skills training will always be a challenge, but the focus should be on training teachers rather than students.

“Physical distance becomes irrelevant if we have the necessary bandwidth. With well-prepared educators, users can collaborate and engage independently of location and that’s where we see innovation flourish.”

In summary, bridging the digital divide in SA requires a comprehensive approach as emphasised by industry leaders. Ongoing investment, training and collaboration are essential to overcoming these challenges and advancing digital inclusion.

www.linkedin.com/in/takalani-taki-netshitenzhe-ambassador-advocate-0bb85497

www.linkedin.com/in/vuyani-jarana-54a730

John Githinji @

www.linkedin.com/in/john-githinji-/

Taylor Kwon @

www.linkedin.com/in/taylor-anne-kwong-5a24948b

Carl Bosma @

www.linkedin.com/in/carlbosma

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OFFERING BETTER DAYS by

HELPING RELIEVE HUNGER Kellanova, a leading food company, is advancing sustainable and equitable access to food in South Africa. By ZANDILE MPOSELWA, Corporate Affairs Director at Kellanova

Zandile Mposelwa

through its Better Days™ Promise School Feeding Programme to support the Department of Basic Education’s National School Nutrition Programme.

BEYOND THE BREAKFAST BOWL: BUILDING SUSTAINABLE FUTURES

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ccording to Statistics South Africa, 21 per cent of households face food insecurity, so alleviating hunger isn’t just charitable; it’s essential.

Kellanova South Africa, formerly Kellogg’s, is committed to creating better days for South Africans by advancing sustainable and equitable access to food, addressing the intersection of wellbeing, hunger, sustainability, equity, diversity and inclusion.

As a leading South African food manufacturer, Kellanova knows it has a critical role in helping to overcome the hunger crisis by providing food relief to those most in need.

ONLY HUNGER FOR LEARNING BELONGS IN SCHOOLS The impact of school hunger is staggering.

Hungry children struggle academically, have high absenteeism and are more likely to disengage in class. Hunger also impacts their physical health and cognitive development.

For many South African children, a meal at school is the only consistent source of nutrition they receive. Kellanova firmly believes no child should have to go to school on an empty stomach, and the company is committed to advancing its efforts to tackle school hunger. Since 2014, Kellanova, through its charity partner, Food Forward South Africa, has donated over 62 million meals

KELLANOVA FIRMLY BELIEVES NO CHILD SHOULD HAVE TO GO TO SCHOOL ON AN EMPTY STOMACH, AND THE COMPANY IS COMMITTED TO ADVANCING ITS EFFORTS TO TACKLE SCHOOL HUNGER.

In a country where food insecurity and malnutrition are prevalent, especially in rural and underserved urban areas, having access to fresh, homegrown vegetables can make a substantial difference in promoting healthier eating habits. To support this, Kellanova, In 2024, in partnership with Reel Life, launched Better Days™ Promise vegetable gardens at schools and in the homes of children in Kwa-Thema Springs, Gauteng. These gardens offer more than just fresh produce; they foster community engagement, promote environmental stewardship and enhance educational experiences. The schools and communities are empowered with skills and resources to start vegetable gardens and alleviate hunger sustainably.

The vegetables from these gardens are used to prepare school lunches.

Moreover, the gardens at home allow families to have a continuous supply of vegetables throughout the year. In 2024, this project led to the harvest of 285 000kg of vegetables.

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KELLANOVA ADVERTORIAL

THE GARDENS AT HOME ALLOW FAMILIES TO HAVE A CONTINUOUS SUPPLY OF VEGETABLES THROUGHOUT THE YEAR. The impact of these schools and community gardens ripples outward, reshaping local attitudes towards food production and community resilience. By growing their food, families and schools become less reliant on external food sources, which can be disrupted.

Gardens offer a sustainable way to ensure a continuous food supply, even in times of crisis.

This self-sufficiency is particularly crucial for vulnerable populations that may be hardest hit by food shortages and price fluctuations.

The initiative not only helps build and transfer skills to schools and communities, but also provides them with resources that will allow them to alleviate hunger with a more sustainable solution: replacing the reliance on food donation with the skills they need to grow their food.

KELLANOVA IS COMMITTED TO BEING A RESPONSIBLE SOCIAL CONTRIBUTOR TO PUBLIC HEALTH GOALS BY CONTINUING TO INVEST IN PRODUCT INNOVATION AND NUTRITION OF ITS CEREAL PORTFOLIO.

DRIVING THE BETTER DAYS PROMISE BY DELIGHTING SOUTH AFRICANS WITH BREAKFAST CEREALS Kellanova is committed to being a responsible social contributor to public health goals by continuing to invest in product innovation and nutrition of its cereal portfolio without compromising taste while increasing the choices available to consumers.

The company understands that parents want the best for their children, including what they eat for breakfast. In line with its commitment to delicious and nutritious options, Kellanova’s beloved children’s cereals, such as Coco Pops, Rice Krispies and Froot Loops, now contain 25 per cent less sugar. The range is fortified with iron and is high in seven B vitamins.

Kellanova showcases its Kellogg’s All-Bran range, which offers consumers five benefits of fibre: added iron and zinc, reduced bloating, feeling fuller for longer, keeping regular and supporting digestive wellness.

“Kellanova believes wellbeing is a journey that involves listening to its consumers, understanding their needs and preferences and offering them nutritious, tasty, and convenient products. This involves constantly innovating and improving its products, using the best ingredients and the latest technologies”, says Zandile Mposelwa, Corporate Affairs Director at Kellanova.

VISIT WEBSITE

SCAN THIS QR CODE TO GO TO THE KELLANOVA WEBSITE

For more information: 011 233 6600 www.kellanova.com

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The power of DEI in driving social impact

THE GLOBAL DEI PUSHBACK ROBERT LEWENSON, head of responsible investments at Old Mutual Investment Group, says for South Africa, where transformation remains a critical business and social imperative, the momentum around diversity, equity and inclusion continues to evolve rather than decline

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n recent years, diversity, equity and inclusion (DEI) has become an important focus for companies across the globe, particularly for responsible investors. As a growing body of evidence has linked DEI to improved company performance, it has emerged as an essential element of a company’s strategy for long-term sustainability and profitability.

Despite rising recognition of DEI’s value in enhancing performance, the return of Donald Trump to the United States (US) presidency has seen astonishing pushback against DEI initiatives. The Trump administration has made its position on DEI policies abundantly clear, taking several steps to undermine the progress of DEI programmes, including rolling back policies that promote diversity in the workplace and in government contracting. Trump’s stance on DEI initiatives, including his executive orders aimed at halting diversity training in federal agencies, has sent a message that the pursuit of diversity could be viewed as divisive or unnecessary.

IMAGES: FREEPIK.COM, SUPPLIED

Diversity, equity and inclusion (DEI) is more than just a corporate buzzword – it is a fundamental driver of social and economic transformation, particularly in a country like South Africa. As global investors reconsider their stance on DEI, the stakes are even higher in a society still grappling with the long-term effects of apartheid-era inequality. DEI policies are not merely about compliance or reputation management; they are crucial for fostering inclusive economic growth, creating equitable opportunities and ensuring long-term business sustainability.

As Robert Lewenson of Old Mutual Investment Group explores, the global pushback against DEI – exemplified by the political shifts in the United States – poses significant risks for businesses and investors alike. However, in South Africa, DEI remains not just relevant but imperative. With legislation such as Broad-Based Black Economic Empowerment (B-BBEE) and constitutional commitments to redress historical injustices, the corporate sector is compelled to integrate DEI into its core strategies.

More importantly, companies that genuinely embrace DEI are proving to be more innovative resilient and profitable in the long run.

In an era where the world seems increasingly divided on the value of diversity, South Africa stands as a testament to why inclusion is non-negotiable. The business case for DEI remains strong – investors who abandon it do so at their peril.

Above is Lewenson’s perspective of why abandoning DEI imperatives impacts the entire company value chain – DEI is not just a corporate buzzword but a fundamental driver of social impact. When businesses prioritise DEI, they contribute to economic justice, uplift disadvantaged communities and drive inclusive growth – ultimately shaping a more equitable society.

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DI V ERSI T Y, EQUI T Y A ND INCL USION

INVESTING IN SOUTH AFRICA MEANS INVESTING IN ACCORDANCE WITH THE LAWS OF TRANSFORMATION AND BROAD-BASED BLACK ECONOMIC EMPOWERMENT AS WELL AS THE CONSTITUTIONAL PRINCIPLES ENCOURAGING THE REDRESS OF HISTORICAL INJUSTICES. IS DEI DEAD?

avoid legal risk by not making public statements about their hiring practices.

In South Africa, the impact and reaction of local companies to Trump’s crusade against DEI is likely to be more limited. When investing offshore, foreign companies typically apply the local laws to their local subsidiaries.

Investing in South Africa means investing in accordance with the laws of transformation and broad-based black economic empowerment as well as the constitutional principles encouraging the redress of historical injustices.

This will continue to encourage DEI commitment from both local and foreign investors and employers as long as local Robert Lewenson legislation supports DEI policy in local companies.

Trump’s anti-DEI stance has set off a chain reaction, with many high-profile US and multinational companies scrambling to retreat from their previous DEI policies, alongside some large investors. This has raised the inevitable question among diversity advocates globally: is DEI dead?

IMAGES: FREEPIK.COM, SUPPLIED

EVOLVING, BUT NOT DEAD

In South Africa, a nation characterised by its diverse population and historical challenges regarding inequality and discrimination, the importance of DEI is particularly pronounced. We remain the living embodiment of why DEI is so critical and why it can’t be abandoned, both at home and globally.

Globally, DEI momentum is, categorically, not dead; we are currently not witnessing the same level of rollback of DEI policies in global corporates that we have seen in US-based corporates. However, we are starting to see definitions evolve, particularly in the description and implementation of DEI in practice – in some cases, it is being termed in broader strokes such as “intersectionality”.

Considering the companies that acted in haste to remove DEI policies from their corporate strategies, these organisations were likely motivated by two reasons: financial and legal risk.

Financial risk can be explained by the sense that failure to roll back DEI policies would result in loss of business with the federal government, which has specifically abolished DEI practices – many US corporates may fall into this category.

The other, less well-known issue is that US companies are potentially trying to avoid legal risk by removing explicit DEI policies from their public notices. It is law in the US for a company not to hire or fire based on ethnicity, religion, and so forth. Some corporates are likely to have seen the political shift as an opportunity to

THE PROOF IS IN THE PROGRESS Aside from being the right thing to do, there is substantial evidence that companies that embrace DEI perform better, attract and retain talent and enable better innovation and problem-solving. According to McKinsey, organisations with diverse teams are 36 per cent more likely to outperform their peers.

At Old Mutual Investment Group, this ethos applies not only to our own business, but also the companies we invest in. Guidelines on social issues when engaging with investee companies are clear, and a section on social issues is included in our Listed Equity Stewardship Guidelines. Among the many social issues it provides guidance on, our expectations of investee companies regarding DEI are

explicitly stated as: “A company should implement a programme of human capital development by monitoring and addressing the number of staff within the organisation, the progression towards employment equity targets, the provision of training that will increase employees’ competency and also provide opportunities for women, previously disadvantaged and disabled individuals.”

There are many, as-of-yet unquantified, examples of the success of our investee companies that have embraced DEI. However, some of the more tangible examples of success can be found in historically homogenous companies in the retail sector. At Shoprite, for example, the board previously lacked diversity, with some directors being former executives and/or appointed as shareholder representatives of large, related parties. An improvement in governance happened after the election of Wendy Lucas Bull to the board in November 2020, leading to an immediate focus on pressuring changes at board level and on key committees to introduce diversity.

During 2021, four independent nonexecutive directors were appointed and allocated to key board committees. The improvement in DEI at board level has filtered down into other layers of the organisation, and most of the branch management are diverse in terms of ethnicity and gender, as per their latest report.

FUTURE-FITTING A FRAGMENTED WORLD Despite divisive political figures such as Donald Trump undermining DEI initiatives in parts of the world, the evidence supporting the business case for diversity remains irrefutable. As the world appears to be entering a period of increasing polarisation, embracing policies that promote inclusion and celebrate the value of diversity is essential to ward off the regression towards an unequal and discriminatory world. South African investors have the opportunity to champion DEI, proving that investing in diversity, equity and inclusion is not just the right thing to do, but also necessary for long-term success.

EMBRACING POLICIES THAT PROMOTE INCLUSION AND CELEBRATE THE VALUE OF DIVERSITY IS ESSENTIAL TO WARD OFF THE REGRESSION TOWARDS AN UNEQUAL AND DISCRIMINATORY WORLD. S O C I A L I M P A C T 47

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BEYOND REPORTS ESG must drive real change for businesses to thrive

Environmental, social and governance principles have evolved beyond mere shareholder reports. In South Africa, companies such as Spier Wine Farm and Woolworths are embedding these principles into their core operations, proving that sustainability is both a responsibility and a business advantage, writes MATTHEW HIRSCH

E

nvironmental, social and governance (ESG) principles have become a critical part of how businesses function in South Africa. More than just a compliance requirement or a corporate social responsibility initiative, ESG is shaping how businesses operate, innovate and interact with their communities. Forward-thinking companies are going beyond traditional ESG frameworks, embedding sustainability into their core strategies and long-term business models.

One of the leading examples of this shift is Spier Wine Farm, which shares that it has long

Heidi Newton-King

prioritised sustainable business practices.

However, Heidi Newton-King, regenerative and HR director at Spier, argues that regenerative better reflects its mission.

“We prefer to talk about regenerative practices rather than just ESG,” says Newton-King. “ESG should make us proud because we’re not just mitigating environmental issues; we’re regenerating and looking for opportunities to create lasting impact.”

This philosophy extends beyond environmental concerns to include social responsibility and employee engagement.

Newton-King emphasises that consumers and employees seek brands that align with their values. “Consumers are looking for businesses that give them hope and allow

“CONSUMERS AND EMPLOYEES SEEK BRANDS THAT ALIGN WITH THEIR VALUES.” – HEIDI NEWTON-KING

them to make a difference through their choices. Employees also want to feel that their contributions are purposeful and that they work for an organisation that genuinely prioritises sustainability,” she adds.

FROM WINE FARMS TO RETAIL GIANTS: THE ESG COMMITMENT Spier’s commitment to ESG begins with a deep understanding of its environmental impact.

The company’s carbon footprint analysis revealed that 80 per cent of its emissions came from energy usage. In response, Spier began implementing small-scale solar installations to reduce reliance on nonrenewable energy sources. Now, the farm is conducting an environmental impact assessment to install a larger solar plant, aiming for long-term energy sustainability.

Beyond energy initiatives, Spier runs multiple Growing for Good projects, designed to empower communities and drive positive environmental change. These initiatives focus on regenerative farming, ecological restoration and skills development, ensuring sustainability efforts extend beyond the business to the broader community.

Newton-King acknowledges that many businesses feel overwhelmed by ESG due to its complexity. However, she stresses that companies don’t need to have all the answers upfront.

“Quite often, ESG can become technical and overwhelming. People feel unsure about where to start with a climate change strategy,

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EN V IRONMEN TA L , S OCI A L A ND GOV ERN A NCE

LESSONS

IMAGES: SUPPLIED

For companies looking to embed environmental, social and governance principles into their operations, the key lessons from Spier and Woolworths are clear: • Sustainability must be proactive, not reactive – businesses should focus on regenerating resources, not just minimising harm.

• Engaging employees and consumers is critical – people want to support and work for brands that align with their values.

• Small steps matter – even small initiatives, such as switching to solar or sustainable packaging, can contribute to long-term positive change.

waste management plan or ethical sourcing policy.

However, the key is to approach it as a learning journey – one that involves trial, improvement and continuous commitment,” she explains.

This mindset of continuous improvement is also reflected in the ESG approach of one of South Africa’s largest retailers, Woolworths.

The company aims to be one of the world’s most responsible retailers, focusing on ethical sourcing, environmental conservation and sustainable packaging solutions.

According to statistics on the Woolworths website, 56 per cent of its operating profit comes from beauty and apparel, 40 per cent from food, and the rest from financial services.

Its ESG strategy is deeply embedded in all three areas of business, ensuring a holistic approach to sustainability.

A recent milestone in its Farming for the Future programme was the certification of its first coffee supplier under this sustainability framework. Additionally, Woolworths has trained farmers in regenerative coffee-farming practices, equipping them with the knowledge to enhance soil health, reduce waste and improve overall farm productivity.

Its Fishing for the Future initiative focuses on sustainable seafood sourcing, ensuring marine resources are protected while supporting local fishing communities. Beyond food, the retailer has committed to ensuring all its products are responsibly sourced and packaging is either recyclable or reusable.

“As businesses, we all have a role to play in contributing to a sustainable environment,” Woolworths states. “Our commitment is to continuously enhance our impact through ethical sourcing, responsible retailing and an unwavering focus on sustainability.”

As South African businesses continue to navigate economic and environmental challenges, integrating authentic and impactful ESG strategies will be essential – not just for compliance, but also for creating a thriving, future-ready economy.

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