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It’s time to believe in better

By Dr Morné du Plessis, CEO of WWF South Africa Hope is life and death in equal measure. At its best it colours the day and lights up the night. At its worst, it remains an elusive hankering for something to be gifted by others.  As South Africans, we know all too well how easy it is to slip into a spiral of despair and become a liability to ourselves (just think of all those solution-free conversations at social gatherings that dwell on the negatives, from loadshedding to shoddy service delivery, taxi strikes and more). Yet, South Africa is widely acknowledged for having turned calamitous predictions of a turbulent future into unmatched opportunity.  Those of us who lived through the 70s and 80s know just how far we’ve come. Imperfect as our new society may be, there are few who hanker for that unequal past and many who wish we could rekindle the blossoming optimism post-1994. We have come to find ways to work around inconvenience and count ourselves lucky for what we have. Should we expect better? Of course, we must and can do better! But better will not be possible if we outsource the responsibility to others, be it government, business, or civil society organisations. Fixing the country starts with each one of us. Environmentalists are by their very nature agents of hope. Those dedicating their lives to environmental causes are profoundly accustomed to an enduring sense of doom. Every day there is more evidence, most of it about how we are knowingly destabilising our climate, dismantling our ecosystems and leaving a growing debt to nature for our children to settle. Yet hope, supported by action, is far more powerful than the strangely seductive slide into despair. Environmentalists know how to deal with relentless negativity. It is what we deal with all of our lives. We simply believe that it is possible to be better. What underpins this belief? We are surely motivated by the knowledge of our extraordinary natural inheritance and the responsibility of care that comes with it.  Sometimes, just as we need reminding how far we’ve come as a society, we need reminding of just how exceptional South Africa’s natural and social endowments are.  Few places on Earth can match the claims of this country as the cradle where humankind was born – from the rich early palaeontological finds of early hominids, millions of years old, to the precursors of human culture spanning tens of thousands of years. Our very essence as human beings has been shaped right here in the mountains and plains of South Africa, and in these finds it is possible to sense the origins of hope and wonder.  Fewer than a handful of nations surpass South Africa in natural wealth. This wealth is the outcome of tens of millions of years during which an astonishing array of species were formed. When it comes to biodiversity, we are members of the Big League no matter which way you look at it.  As an example, within our borders lies the entire exquisitely abundant and unmatched Cape Floristic Kingdom (CFK) with its thousands of species of plants, insects and animals. Compared to the world’s largest floristic region, the Holarctic Kingdom, our CFK is the size of a mouse to an elephant. Yet it is so incomparably unique that not even tropical forests can match its magnificent diversity.  This knowledge should fill us in equal measure with unbridled pride and a delight of responsibility.  Even though we have not even had to compete for it, our natural inheritance is all of our endowment to look after, as is our wealth in human capital. The World Cup of Nature and Humanity is in our hands.  This trophy, however, is not merely a sign of extraordinary superiority, but it is our duty to keep intact.  What ultimately gives me hope, of the kind that colours the day and lights up the night, are the passionate young specialists within my own organisation who embody the best of what our democracy has delivered. Their willingness to embrace change and to conquer obstacles in pursuit of a better world for people and nature is truly inspiring. As much as we are blessed with a natural bounty in this country, we too have unsurpassed human capital to match – if only we are able to harness it. If, like me, you have experienced the same wondrous uplifting emotion at the song of a chorister robin-chat at dawn or the joy of catching the strain of melodic village songs floating over the far hills at dusk, you will know that you too have skin in the game. It is us who must solve the unsolvable and conquer the insurmountable, doing the constructive deeds that we so often expect of others.  With so much to play for, better is surely well within our reach. Yours in nature

Getting the best from board diversity

By Professor Parmi Natesan If it is accepted that a board’s performance is directly linked to the performance of the organisation it governs, then the board’s composition is clearly a hugely important determinant of its effectiveness. This is particularly true now that boards are in the spotlight for the quality of the decisions they make, and also now that the business environment has become so complex, and the stakeholders that need to be satisfied are so varied. In this environment, goes the argument, the insights offered by a diverse group of directors will make for better oversight and decision-making.  This makes intuitive sense, but it’s also broadly borne out by research. Now-venerable research from the Boston Consulting Group’s Henderson Institute shows that companies with more diverse leadership teams report revenue from innovation that is higher than those with below-average diversity scores (45% to 26%). The same institute also showed that diversity is linked to future growth prospects.  For these reasons, as well as for fairness and moral redress, the JSE Regulations require a board diversity policy to be implemented, and King IV requires targets to be set for race and gender diversity on boards.  Is it genuine? Once it’s agreed that diversity is a good thing, it’s worth taking a moment to consider what it actually looks like. And here, understandably but regrettably, there remains a tendency to take the easy way out—what I call the tick-box approach, the appearance of diversity.  In South Africa, and elsewhere too, diversity typically means more women (gender diversity) and more people of colour (racial diversity). Thus we hear about a “diverse appointment” being used to refer to a female or ACI (African, ‘Coloured’ or Indian) appointee, and companies proudly list the relative numbers of each on their boards and executive teams. Greater representation of both women and people of colour is obviously a good start but, as the activist investor group Barrington Capital Group argued in a 2020 paper for the Harvard Law School Forum on Corporate Governance, demographic diversity is not the same as cognitive (or experiential, for that matter) diversity.  In other words, an overemphasis on demographic criteria can rob a board of the skills, industry knowledge and experience it needs.  Additionally, the point is often made that this tick-box approach means that the same old names keep cropping up on boards, which means that corporates are potentially missing out on the growing pool of ACI and female candidates who are experienced and competent to serve as directors. How are we doing? So if there is a good case for diversity, how much progress has been made?  The short answer would probably be “slow but steady”. When it comes to race, according to PwC’s Non-executive directors’ Practices and fees trends report (May 2023), black Africans now almost equal the percentage of white non-executive directors (47% to 44%), with Asians (5%) and ‘Coloureds’ (4%) corresponding fairly closely to national demographics. Excluding chairs, where whites continue to dominate (58%), black Africans (45% of non-executives) and whites (46%) are neck and neck for non-executive directorship positions.  As far as gender goes, females now make up 38% of non-executive positions, quite a way off their representation in the broader population, where women make up 51.1% of the total population. For a deeper dive into the progress on gender diversity, reference can be made to the Business Engage report, 2021 – Status of gender on JSE-listed boards, published last year. (This report quotes the 2021 figures, which represent an improvement as compared to the previous four years unless otherwise stated.) Several points stand out.  One point is reporting and disclosure—if we can’t see what companies are doing, we can’t hold them to account. Even at this late stage, 17 of approximately 296 listed companies still don’t have their governance reporting easily available on their websites, and 41 did not report specifically on gender at board level. Only 10 listed a web address for their gender policy.  There has been a big decline in the number of companies that set themselves voluntary targets for gender diversity on the board (27 as opposed to 2020’s 95).  All of this is unacceptable: the JSE requires listed companies to have a policy on the promotion of diversity at board level and also states that listed companies should apply King IV, which in turn requires them to set gender targets and disclose not only the targets, but also progress against them.  At the other end of the scale are the 33 companies that have appointed one woman to their boards and consider that box ticked—the “one and doners”.  Twenty-seven crops up again as the total of JSE-listed companies that have achieved gender parity, with a further 20 just one appointment away from this goal.  As regards female non-executive directors, the Business Engage report broadly correlates with the PwC figures quoted above. It’s interesting but disheartening to note that as regards board committees, women only achieve parity representation on the social and ethics committee.  At the executive level, women have a long way to go, with only 6% of listed-company CEOs and 22% of CFOs being female.  In conclusion, then, I would tend to argue that while companies are making progress in becoming more diverse, it is happening rather too slowly. Given that women are graduating in greater numbers than men, and are thought to control the majority of consumer spending, one is surely forced to conclude that the undoubted benefits of true diversity have not yet been fully recognised. Professor Parmi Natesan is the CEO of Institute of Directors in South Africa

AI: An ally, not an enemy, of strategic thinking

By Tumi Rabanye, Managing Partner – Strategy at Leagas Delaney South Africa I do not consider myself an early adopter of technology, nor do I consider myself a late adopter. I’d say I’m one of those that need just enough of the right kind of nudges to get me to trial and thereafter, I quite enjoy the playing and exploration stages of learning a new application. One such opportunity occurred this week, when as a business unit, we commenced our exploration of the AI-based tools that will enhance our delivery of strategy internally, for our clients and new business prospects. This experience inspired this article. The rise of artificial intelligence (AI) in advertising has sparked heated debates about its role in creative strategy, campaign execution, and the future of human-driven marketing. Some critics argue that AI threatens strategic thinking, replacing human ingenuity with automation. An alternative perspective is that AI is not the enemy of strategy but an invaluable ally – it enhances productivity, allows room for critical thinking, and does not substitute the emotional intelligence (EQ) and social intelligence that a human offers. AI empowers strategists to focus on what truly matters: data driven insights matched with irreplaceable human connection, to inspire creativity. A catalyst for productivity Like most industries, advertising moves fast, it is an industry that demands efficiency with output and that takes time. But the introduction of AI potentially relieves us of the time-consuming tasks, freeing up critical thinking time better used for quality of insight and incisive ideas. Very importantly it liberates and gives the strategist back time for the critical task of playing and exploration, that enables them to build an effective creative bridge. The heavy lifting done by AI-driven analytics platforms helps process consumer data, identifying trends and invites the strategist to use their own social intelligence to correlate or corroborate the information. From the prompts delivered by the AI tools I’ve used, I had the benefit of stretching my thinking sooner and further than I had been able to before. The rapid data processing not only saved me time but also enabled a richer conversation with my clients, empowering us to make more informed decisions. I’m learning the benefit of prompts and using predictive analytics, powered by machine learning, to better explore consumer behaviours and user journeys. With AI-driven automation tools, take-over of repetitive, low-value tasks enabled me to redirect my efforts toward higher-order thinking, the very reason someone like me would have fallen in love with strategy to begin with. Liberating critical thinking Rather than stifling strategic thought, AI amplifies it. By handling tedious and complex computational work, AI grants strategists more mental bandwidth to tackle big-picture challenges. Instead of being bogged down by manual research from multiple sources, data analysis and then synergising information, strategists are able to dedicate their energy to interpreting data in meaningful ways. Strategic thinking involves creativity, problem-solving, and adaptability — skills that AI cannot replicate. AI provides the insights, but relies on the human desire to engage, to persistently ask and refine the questions, synthesise information, and make the final decisions. The intersection of AI-generated insights and human intuition creates a dynamic synergy where strategy is both data-informed and emotionally resonant. For instance, AI can suggest optimised ad placements, but human strategists must determine how those placements align with brand storytelling. AI can analyse past performance and recommend content formats, but only human creatives can craft the narratives that inspire and connect with audiences. The key lies in collaboration. AI supplies the tools, while humans provide the vision. Unlocking emotional intelligence and social awareness Advertising is not just about reaching an audience; it is about resonating with them on an emotional level. AI, while highly advanced, misses nuances such as cultural context, social and ethical consideration, and human emotions. Emotional intelligence (EQ) and social intelligence is the preserve of the human behind the machine. AI cannot fully grasp the depth of human emotions that drive decision-making. Human strategists help craft messaging that is empathetic, inclusive, and aligned with societal values. Emotional intelligence is essential to tap into human experiences in ways that AI alone cannot replicate. A brand’s reputation requires a deep understanding of human emotions and societal expectations, skills that remain uniquely human and core to the role of a strategist. Similarly, social intelligence plays a vital role in identifying emerging cultural shifts and trends. Understanding subcultures, generational attitudes, and regional differences requires lived experiences, empathy, and an awareness that AI cannot authentically replicate. The future of AI and human collaboration In my humble assessment, success as a strategist demands that we leverage AI as a powerful assistant in order to accelerate critical thinking, judgment, and strategic oversight. The core of advertising, brand storytelling and connection, will remain firmly in human hearts and hands. The top three observations I am making from my own learning journey are that to maximise the benefits of AI, strategists should: Where to from here? AI is not the adversary to the discipline or role of strategy; it is an ally that accelerates productivity. AI frees us to focus on what truly matters: crafting meaningful, impactful work that connects with people on a human level. Essentially, AI cannot replace humans, but it has the potential to replace humans who do not embrace it and learn how to use it proactively. Tumi Rabanye is Chief Strategy Officer at Leagas Delaney South Africa with experience in various sectors including broadcast, telecoms and financial services. Leagas Delaney is an independent communications agency with offices in London, Hamburg, Milan, Shanghai, Johannesburg and Cape Town.

Hydrogen: A catalyst to fuel Africa’s green industrial revolution

By Tiago Marques, Head of Content of Global African Hydrogen Summit and Vice President of Production at the Sustainable Energy Council What is hydrogen and how is it produced?  Hydrogen is a clean alternative to methane, also known as natural gas. It’s the most abundant chemical element, estimated to contribute 75% of the mass of the universe. Hydrogen can be made directly from fossil fuels or biomass, or it can be produced by passing electricity through water, breaking the water into its constituent components of hydrogen and oxygen.  According to the National Renewable Energy Laboratory from the US Department of Energy, hydrogen has very high energy for its weight, but very low energy for its volume, so new technology is needed to store and transport it. And fuel cell technology is still in early development, needing improvements in efficiency and durability. The emerging clean hydrogen market The International Energy Agency (IEA) has stated the key pillars of decarbonising the global energy system are: In addition to the projected volume of emissions reduction hydrogen is expected to facilitate, hydrogen is positioned to play a significant role in the energy transition due to emerging capabilities to produce clean hydrogen and hydrogen-based fuels as well as increasing hydrogen demand generation. According to McKinsey research, total hydrogen demand has the potential to reach up to 660 million tons by 2050, abating more than 20% of global emissions. Realising this opportunity will require all relevant stakeholders to come together to develop clean hydrogen value chains – often across geographies. Those positioned to take action in these areas will be uniquely advantaged to create new sources of value and play a leading role in future global energy markets. Clean hydrogen is expected to play a critical role in decarbonising hard-to-abate sectors, often as a complement to other technologies, including renewable power and biofuels. Hydrogen has the potential to decarbonise heavy industries including steel, petrochemicals, fertilisers, long-haul transport and more as well as to support flexible power generation, among other applications. While momentum is strong, more needs to be done to be on track to achieve net zero ambitions by 2050. The increasingly supportive policy and funding environment – including quantified 2030 production capacity targets for many countries – means about two-thirds of announced projects are projecting start-up by the end of the decade. The momentum created by the US Inflation Reduction Act has helped boost energy-related sectors globally, including low carbon hydrogen. For investors, comparing the effect of hydrogen-related policy and legislation on costs and pricing will be a key element of making informed, data-driven investment decisions. However, the emerging hydrogen economy faces significant challenges in ramping up, including: The opportunity for Africa For many African countries, the question is not about reducing their carbon footprint but rather to sustainably harness their existing resources to meet the growing demand for energy that will advance economic development, map a sustainable path to a net zero future and eliminate energy poverty across the continent. To this end, some African countries are setting their sights on clean hydrogen.  In the global drive to develop and commercialise clean hydrogen, Africa is on an equal footing with developed economies. Governments around the world are promoting projects for domestic and export markets of clean hydrogen, with billions of dollars expected to be invested over the next few years. To capture the opportunity, supportive and facilitating policy will be needed to incentivise investment as well as: Given the advantage of abundant wind and solar resources, vast underpopulated landmasses and strategic coast lines, the continent could be highly competitive in supplying clean hydrogen for local and global consumption. A McKinsey Achieved Commitments scenario projects global hydrogen demand could grow sevenfold by 2050, accompanied by falling hydrogen production and renewable capacity increases. Africa has a significant opportunity to export the clean hydrogen needed to balance global demand with available supply. Collectively and through collaboration, hydrogen-producing African countries have the potential to complement African hydrogen exports of up to 40 megatons by 2050 with self- supply its full domestic demand potential of 10 to 18 megatons of hydrogen. To enable these shifts, McKinsey projects $2.9-trillion of cumulative capital expenditure would be required between 2022 and 2050, most of which would need to be dedicated to green energy sources. In 2022, annual investments in energy amounted to $70-billion, of which nearly 60% were derived from oil and gas activities. By 2050, the annual investment required is expected to more than double to $160-billion, with the focus of investment likely shifting to an expected 43% of capital expenditure spent on hydrogen, 38% on renewables, and 17 percent on power transmission, distribution and mini-grids. The African clean hydrogen potential represents a major opportunity for growth, employment and innovation. Stakeholders across the public and private sectors, both domestically and internationally, will have a critical role to play in moving Africa and the countries across it toward a sustainable energy future. The opportunity for Namibia Hydrogen as a catalyst to propel green industrialisation across the African continent is emerging as a multifaceted solution that aligns to domestic, regional, and global agendas. By capitalising on its renewable energy potential and strategic geographic location, Namibia can spearhead the development of a green industrial ecosystem that not only supports its own economic objectives but also contributes to broader regional and global sustainability goals. If executed diligently, it represents a pathway to overcome its structural economic constraints while simultaneously fostering high-skill job creation, increased productivity, market expansion, and foreign direct investment. Central strategies include promoting export development, enhancing efficient production, ensuring external debt sustainability, and developing an integrated industrial strategy. Namibia’s own Green Industrialisation Blueprint also highlights the importance of modernising agriculture, empowering women and disadvantaged groups, and fostering a highly skilled and productive labour force. To avoid the potential pitfalls identified by its founding fathers and enshrined in Vision 2030, Namibia must reduce its reliance on the primary sector and adopt policies that promote economic diversification and resilience.