Profiling the SOCs that are developing and growing the communities in which they operate.

TIISETSO TLELIMA looks at those state-owned corporations that are developing and empowering communities

Transnet, through its foundation, has adopted an integrated model to make a positive socioeconomic impact in local communities with priority given to those communities where the company operates. In 2021, the company invested R112.2-million in community development initiatives countrywide. The investment constituted R107.7-million in planned initiatives in the areas of health, education, sport, employee volunteerism and socioeconomic infrastructure development. Moreover, an additional R4.5-million was invested in COVID-19 relief efforts.

“Transnet’s social licence to operate in communities across the country is a result of the organisation being a good corporate citizen, and its ability to respond adequately to the needs of communities and other key stakeholders in these locations,” says Transnet’s spokesperson Ayanda Shezi.

The company’s CSI arm has been in existence for over 20 years in various forms. “Our community investment programmes are underpinned by the organisation’s commitment to uplifting, empowering and bringing about sustainable meaningful change in the communities where we operate,” explains Shezi.

At a strategic level, the company’s CSI supports the operations of the organisation and enhances the value proposition through sustainable socioeconomic interventions, says Shezi

For example, its flagship project, the Phelophepa I and II healthcare trains, provides primary healthcare services to vulnerable communities, assisting with alleviating the burden on the country’s overstretched healthcare facilities. The trains have become so popular that people gather long before they pull into the station. Some people sleep at the station all night, hoping to be first in line for the “good, clean health” that the name of the train promises. They may need glasses or a toothache eased, while some need counselling or medicine for high blood pressure. Each train has a permanent staff of 22 healthcare professionals, including nurses, healthcare educators, opticians and dentists. The trains also carry managers, translators and security staff. Local workers are hired on a temporary basis.

Both trains have continued with the establishment of community food gardens as well as basic healthcare training programmes with community volunteers. In 2021, over

344 000 patients were assisted through the trains, including 36 000 patients who were provided with spectacles and 28 000 people who were vaccinated for COVID-19.

INFRASTRUCTURE UPGRADES

Sanral, on the other hand, has spent nearly R29-million on community development (CD) projects in the 2021/2022 financial year. The company sources the labour required for the projects from the local areas, with preference

“SANRAL TRIES TO MAXIMISE ITS IMPACT IN TERMS OF COMMUNITY INVOLVEMENT AND STRIVES TO LEAVE A LEGACY THAT REMAINS LONG AFTER THE CONSTRUCTION.” – VUSI MONA

given to small contractors and suppliers. “We prioritise CD projects consisting of road-related infrastructure upgrades within communities where it impacts on the national road,” explains Sanral spokesperson Vusi Mona.

In the Eastern region, Sanral constructed community walkways and public transport facilities along the R22 national route between the town of Hluhluwe and the Kosi Bay border post with Mozambique. Mona adds that in the southern region, the rehabilitation of the N2 Section 19 between Nqandu and Mbokotwana River and the safety improvements at Dan’s Country Lodge have added immense value to the affected communities.

The scope of work included building access roads and walkways within the villages in the proximity of the main project. The expenditure on the project was just over R4.2-million, but is expected to reach R21-million by July 2023. Lastly, in the Northern Cape, pedestrian facilities will be developed in Kagung. The works entail pedestrian walkways as well as access roads in the town, connecting to the N14. Approximately R660 000 is earmarked for this project.

“Sanral tries to maximise its impact in terms of community involvement and strives to leave a legacy that remains long after the construction,” explains Mona. “This goes beyond improved infrastructure and is geared to prioritise capacity-building in communities so that they have the necessary tools toll enable them to access further developmental opportunities that may come along through other entities.”

In the absence of construction-related CD projects, Sanral works with municipalities to identify training needs in the community and then puts that budget towards skills development and capacity-building across various spheres, depending on the identified needs. For instance, through its bursary and scholarship programme, Sanral has made a significant contribution to the lives of young people across South Africa to enable them to follow their dreams in education. In the 2021/2022 financial year, 225 learners received scholarships to the tune of more than R6.3-million. Notably, 71 per cent of scholarship recipients were girls.

At the same time, Sanral awarded external bursaries to 135 students across 16 tertiary institutions in South Africa to cover both postgraduate and undergraduate qualifications. “The new policy provisions allowed Sanral to extend awards to students within the built environment, therefore expanding the reach further than civil engineering to include students in computer science, mechatronics, human resources, LLB and electrical engineering, accounting, supply chain and quantity surveying,” explains Mona. The total amount spent was more than R9.5-million.

Both Sanral and Transnet have been unaffected by the National Treasury’s decision to halt some projects because of the 30 per cent local procurement rule. “Sanral has always included a contract participation goal requirement in all its construction projects, even prior to the 2017 Preferential Procurement Policy Framework Act regulations,” says Shezi.

CREATING JOBS AND ECONOMIC GROWTH

The Atlantis Special Economic Zone (SEZ) was promulgated and opened by President Cyril Ramaphosa in 2018 to function as a special economic zone to attract investment and create economic growth. Atlantis SEZ is dedicated to the manufacturing and provision of service in the green technology space.

“We work with entities that manufacture or produce in a green manner, what that means is that they make use of technologies in the manufacturing process that have a positive impact on our carbon footprint,” explains Ellen Fischat, an executive of Integrated Ecosystems at Atlantis SEZ.

Historically, Atlantis SEZ, situated 40 kilometres outside Cape Town, was established for the manufacturing sector in the 1970s.

When the manufacturers closed down, many families lost their income and were forcibly removed. It wasn’t until 2011 that Ebrahim Patel, then minister of trade, industry and competition, did a feasibility study to see if the area could be revitalised as a special economic zone.

Since then, an estimated R700-million has been invested in the Atlantis SEZ, of which R475-million has been by Gestamp Renewable Industries, a wind tower manufacturer. A geotextiles manufacturer has invested R130-million to date, and a double-glazed window manufacturer invested R50-million. A wind tower internals manufacturer has invested R25-million and R20-million was recently invested by an acetylene gas manufacturer. As a result of these investments, about 312 new jobs have been created in the zone. Gestamp Renewable Industries employs 295 staff, of which 80 to 85 per cent are Atlantis residents.

“One of the projects we are funding is a food security and incubation programme,” says Fischat. “We’ve got 21 food entrepreneurs in the project, and we’ve taught them technical skills and how to use green technology such as hydroponics.”

The Atlantis SEZ also runs a community stakeholder network that represents the needs and interests of the community and businesses from 10 different sectors in the area. Renee Ryk, who runs an early childhood development (ECD) business, represents home-based ECD centre owners in the network. “Many of the women who are opening these centres are women without work and we had various challenges with registrations and managing the financial side of our businesses,” explains Ryk.

She says Atlantis SEZ runs workshops that have helped the ECDs to become more sustainable and taught them how to manage their finances. “It really equipped us with skills on how to manage our income and expenditure and how to work out yearly budgets,” says Ryk. There are 210 ECD centres in the programme. The next step is to help them write funding proposals where they will be awarded R10K funding toward their businesses.

“The female business owners were brought onto this platform very intentionally,” explains Fischat. “We also wanted to shift perceptions because often people think green technology is expensive and only for people from a very high LSM; that it’s specifically for a certain race or class. We never think it’s for us people of colour.”

THE ATLANTIS SEZ ALSO RUNS A COMMUNITY STAKEHOLDER NETWORK THAT REPRESENTS THE NEEDS AND INTERESTS OF THE COMMUNITY AND BUSINESSES FROM 10 DIFFERENT SECTORS IN THE AREA.