Context

Corporate involvement in social development has, until recently, been viewed as a distinct business cost – a drain on profitability but a necessary nod in the direction of trans-formation and sustainability. Now business is realising that by focusing on shared value, they can benefit society and boost their competitiveness at the same time.

93% of CEOs believe issues of sustainability will be critical to the success of their business.

The global financial crisis has proved to be a turning point in thinking around investment and socio-economic development. In Africa, shrinking foreign investment has had a sobering effect. But it also marks the start of a new chapter, where we have to look to our own resources to address the problems we face.

If events in the world of global finance have taught us anything, it is that we must find new ways to stimulate investment and unlock capital for social development. In the same way that consumers are making more informed choices about the products they buy, investors must make more considered choices about where and how their capital is invested.

Inequality

South Africa is rated the fifth most generous nation, with citizens donating R12 billion to good causes annually. Corporate South Africa contributes around R6 billion to social development. Despite this, we continue to have one of the highest Gini co-efficients in the world.

Unemployment, HIV/AIDS, housing, education, food security – all are major challenges to our development:

  • At 5.7 million, South Africa has the largest HIV-positive population of any country in the world
  • Despite economic growth, the nutritional status of South Africans has not improved since the beginning of democratic rule in 1994.
  • South African learners perform far worse than their peers in other developing countries – including African countries – in international tests.
  • In South Africa, life expectancy at birth is 50 years for males and 53 years for females.
  • Land distribution in South Africa is among the most unequal in the world, with 55,000 white farmers owning 85% of agricultural land.

We use our experience across civil society and the corporate social investment sector to press for ground-up, sustainable change in South African communities.