Social Development Month – Let’s All Make An Impact

As the social development month of October draws to a close, we have had the opportunity to see what companies and individuals are doing and to encourage action in this space. The theme honoured this year is “Working Together to Build Caring and Sustainable Communities for All”, which is particularly appropriate at this time.

The COVID-19 pandemic has brought hardship upon hardship upon communities, families and individuals. South Africa is already one of the countries with the highest unemployment rate worldwide – sitting at 34,4% in the second quarter of 2021 according to a recent Reuters poll. This figure is likely far higher as it does not take into account the informal economy. Tragically it is the youth who are most affected. Imagine the spectre of matriculating or graduating from tertiary education, only to find you cannot find a job. It is not surprising that many young people turn to crime as a means of making money or have severe mental health problems.

Government in its effort to provide some financial relief/ assistance to individuals and or households severely affected by the COVID-19 pandemic has extended its COVID-19 social relief distress grant of R350 as announced by President Ramaphosa in August 2021. However, this immediate relief grant  is just a drop in the ocean for the recipients as it does not even cover the monthly basic food basket for the average South African. Therefore, what solutions or assistance can the private sector offer to aid the supply of social development in South Africa?

They can start by aligning their values and corporate social responsibility fund allocations with the social development programmes implemented by government. The Triple Bottom Line is no new concept and listed companies are accustomed by now to producing sustainability reports. But are they up to date with the latest thinking, as embraced by Environmental, Social and Governance (ESG) principles and the Sustainable Development Goals (SDGs) propounded by the United Nations – 17 interlinked global goals designed to make the world a better place for all?

One important SDG relates to food security and sustainability. It is estimated that currently  approximately 600,00 children go to bed hungry each day, according to an article on Daily Maverick. At Mergence Investment Managers, the SDG of food security is one of six SDGs that we have identified as being best suited to our business model. To address this goal and be part of the solution, we seek to partner and engage with small businesses within the food security sector that speak to our values of sustainable value creation.

The Mergence ethos since inception in 2004 has been to create shared value – that is we invest on behalf of our clients (largely major pension funds) and generate not only a sound financial return but also a social return, encapsulated in the phrase “creating shared value”.

The official 2021 theme is “One hand can feed another”. And so we identified and proudly support Ezomhlaba Community Gardens, a community food garden in Melkbosstrand, Cape Town.

Community gardens are instrumental in mitigating food insecurity and reducing food expenses. This is particularly important for the low-income population: they often have limited access to food through the conventional food system and have a high relative expenditure on food as a share of their disposable income.

Food insecurity is a major factor in township residents’ food supply. A survey by the African Food Security Urban Network showed that 57% of households in poor neighbourhoods were severely food insecure.

Hence, township food insecurity has implications behold the problem of household poverty, including structural food system in townships. These gardens are feeding children with high quality food, and helping them keep healthy to get through a day at school. Organic food is not only for the privileged.

For Mandela Day in July this year, each of our staff members received a gift pack containing a vegetable windowsill garden grow kit which they planted.  When the seeds have grown into seedlings, we will visit the Ezomhlaba Community Food Garden to deliver and plant the seedlings personally.

All it requires is some imagination, identifying a suitable project, and commitment from the individuals making up a company.

Together we can make a difference.

Contact Piwokuhle at piwokuhle@mergence.co.za.