Turning a tip into millions: Y-Brand Founder Kabelo Ncholo
By Fiona Wakelin and Koketso Mamabolo “Hao o eletsa batho dilo tse ntle le bona ba tla ho eletsa botle (When you wish good for others, they will in turn wish you great things),” said Kabelo Ncholo’s late great-grandmother, Mosela Magdaline Ncholo, describing the communal, collaborative essence of empowerment. Not satisfied with merely riding the wave of the success of his award-winning marketing agency, and his impressive list of accolades, Kabelo is scaling up while conscious of the broader socio-economic impact the business could have. He’s seen significant progress in the marketing, advertising and communication (MAC) sector in the last five years, including policy changes crafted with empowerment and inclusivity in mind, such as a target to increase Black ownership with 10 -15%, which is consistent with the B-BBEE policy. “The success of black entrepreneurs in South Africa is, and will continue to be, one of the major means of moving this country and the continent forward in terms of creating employment, economic participation, and redressing the uneven and unjust system of the past,” says Kabelo. “The sustainability of black-owned businesses is crucial to the health and stability of the African economy.” Kabelo is leading by example, coming from humble beginnings to build a 100% black-owned “one-stop shop” marketing agency which offers below-the-line, above-the-line and digital marketing solutions, running an average of 50 campaigns a year across its six offices. The child of a single mother who was working as a domestic worker, Kabelo describes himself as an entrepreneur by default, like many young people from townships and villages – “flying the plane while building it.” Fresh out of matric with great results, Kabelo had been awarded a bursary to study medicine at the University of the Witwatersrand but had no means of getting to Johannesburg from the village of Bapong in the North West province. His aunt, Rebecca Seilane, gave him a lifeline of R2 000 but, unfortunately, by the time he arrived the academic year had already commenced and his only option was to shadow doctors until he could register the following year. Little did he know at the time that he had hemophobia (an extreme aversion to blood) and after collapsing a few times, in Lenasia Hospital’s casualty ward, Kabelo realised a career in medicine was not for him. While working as a waiter at the Mac Ribs restaurant at the Garden Court Hotel, in Milpark, Kabelo noticed room for improvement in how matric farewells were hosted. He voiced his concerns to a colleague whose response marked the genesis of Y-Brand: “Kabelo, as black people, we like to complain without taking action.” Inspired, Kabelo made a promise he would soon regret: He would either host the best matric farewell people had seen or, if he still worked at the restaurant, he would pay his colleague R10 000. He was reminded of it at every turn, and in the end it became a provocation, with him choosing to resign instead of forking out the money. In 2002, using the R350 he had gathered in tips from a table he’d served at the restaurant, Kabelo printed out a business profile and began contacting the schools who rented out the restaurant, offering them the services of his newly-founded company, Yourself Function Organisers. He quickly secured his first four clients, making his first R100 000 at the tender age of 19. In 2004 the company was properly established after a contract from the Wits University School of Mining and Law, and began trading as Yourself Events Management, before evolving into a marketing agency after Kabelo met his mentor, Michelle Combrink, a few years later. WHAT HAVE BEEN YOUR COMPANY’S IMPORTANT DIVERSITY, INCLUSION AND EQUITY MILESTONES? The most significant one is Y-Brand reaching the 20-year milestone as a business. This achievement supports our vision statement to exist for over 100 years. The second milestone is transforming people’s lives. The company has over 300 full-time employees and, at the busiest times of the year, our activation and field sales department employs over 1 000 seasonal employees. The third milestone is the business winning award, including the Top Empowered Employer of Choice: Small-Medium Organisations and I was the 2024 Top Empowered: Richard Fletcher Entrepreneur of the Year. The agency is committed to improve the lives of the disadvantaged by addressing South Africa’s serious economic problems, especially the severe skills gap that contributes to economic challenges such as high unemployment. My mission is to create job opportunities through the agency and prioritise skills development for students and professionals seeking career advancement in the marketing or communications industries. Over 100 students have been given full-time employment to date by the business and more are working as seasonal staff while still studying. The corporate social investment (CSI) body of the business is called Y-Brand Cares and the business contributes 1% of its revenue and provides tertiary bursaries for students. Through this programme we plan to develop our own talent from schools, especially village schools (my background) and afford them the opportunity to study marketing or communications at esteemed institutions, and give them experience through our seasonal jobs such as activations and office support while studying. Currently we are sponsoring six students and looking forward to seeing them working with us in two years when they complete their degrees. In addition, Y-Brand Cares, together with partners (consisting of Y-Brand clients), have reached out to communities to deliver corporate social investment worth millions of rands through a range of initiatives, including the donation of food parcels to various schools and children’s homes. WHAT SETS Y-BRAND APART FROM THE COMPETITION? Our clients are everything to us, they are not only clients, but also investors. They gave us the opportunity to grow and become who we are today. Our clients are the actual “bosses” of the business. Without them Y-Brand does not exist. Through our processes and systems, we have established an operating rhythm to maintain performance to satisfy them. We discover relevant cultures and trends to assist our clients
Meaningful enterprise development: What does it mean-and where are we in South Africa?
By Livhuhani Mukhithi, Director: Broad-Based Black Economic Empowerment: Policy, Institutional Management and Advocacy – dtic The growth and development of economies throughout the 20th and the 21st centuries have been built behind deliberate planning, and undertaking by state actors, private players and other social partners. These initiatives have been anchored around principles of broadening economic participation and inclusion across sectors in the economic mainstream. Support, development and participation of enterprises in the economic mainstream should be premised on the interconnectivity between MSMEs, existing multi-national corporations (MNCs), and original equipment manufacturers (OEMs) within their global value-chains (GVCs). In the South African context, a recently commissioned study on Enterprise and Supplier Development (ESD) by the B-BBEE Commission (2022: 18) hammers on the imperative that Enterprise and Supplier Development forms part of the B-BBEE legislation. The ESD programme’s goal, according to the B-BBEE Commission, is to “create a conducive environment for the building of sustainable relationships between corporate South Africa and black entrepreneurs to facilitate access and transformation of value chains.” B-BBEE is a government programme that aims to correct past wrongs and spread the nation’s wealth among all races and genders, as well as promote growth, development, and entrepreneurial development. B-BBEE is the policy implementation through the B-BBEE Act (as Amended) and the Codes of Good Practice, which provide the foundation for ESD policies for big corporations. As ESD development and support has proven to nurture and consolidate technological development and uptake amongst MSMEs globally, Lee (2017: 03) contends that private companies (locally-owned companies) need to be able to move up the value-chain to higher-value added goods, based on continued upgrading and improvement, and technological innovation. This stands to effect structural transformation and inclusive participation in the mainstream economy. In praxis, a study on Enterprise and Supplier Development (ESD) by the B-BBEE Commission (2022: 17) qualifies the posture that holds that the ESD is not just a South African notion; it’s a global movement that has proved to boost economies, diversify supply chains, and create jobs. The bulk of businesses and a sizable share of employment in both developed and emerging economies are SMMEs. These enterprises, however, face many obstacles that prevent expansion, such as poor technological capabilities, limited human resource capacity, and restricted access to capital. Furthermore, the GIBS White Paper on Enhancing Enterprise and Supplier Development Ecosystem Effectiveness in South Africa (2024: 8) contends that there is more consensus in the implementation challenges of ESD programmes such as limited resources, misalignment of corporate and MSME programme participants, and inadequate monitoring and evaluation. These challenges are at the core of botched ESD programme implementation. South Africa’s effort to increase participation of MSMEs in the economic mainstream hinges upon a plethora of support mechanisms. According to the report on the State of the Small and Growing Business Sector by ANDE (2024: 04) the South African entrepreneurial ecosystem requires innovative solutions to increase the available finance, improve access to markets, reduce bureaucratic burdens, and strengthen the capacity of small businesses and start-ups. The report also examines the state of the Small and Growing Businesses (SGB) sector in South Africa as of 2023 by assessing the amount and type of financial support available to enterprises, the type of capacity development offered, and trends in the policy landscape that affect the entrepreneurial ecosystem. It is also vital to acknowledge that the legislative ecosystem that is in existence to support entrepreneurship, enterprise and supplier development requires updating and reviewing to provide a blueprint for the building of a vibrant MSME sector. The GIBS report concedes that South Africa has a relatively robust financial and capacity-related development landscape for MSMEs. The report State of the Small and Growing Business Sector identified 197 active funding sources offering financing in the form of loans (43%) and equity (41%), with the remainder made up of grants (16%), quasi-equity (7%), and guarantees (5%). Nevertheless, the credit gap among MSMEs continues to be significant. Additionally, the South African economic mainstream’s relationship with MSMEs is characterised by relationships that are both progressive to the country’s reindustrialisation efforts and the ones that are only driven by the compliance imperative (informed by the tick-box approach for compliance purposes). The magnitude to which MSMEs are connected, or not connected, to the GVC of MNCs differs significantly and varies from strategic high value chain integration to non-core value chain integration. On one end, certain MNCs conduct extensive value chain and supplier opportunity analysis to inform the identification of supplier opportunities. At the other end of the scale, other MNCs and corporates link MSMEs to less strategic, non-core supply opportunities. Some corporates have a mixed ESD approach in terms of linking MSMEs to both core and non-core supply opportunities. As contained in the study commissioned by the dtic (2019), the five most common benefits reported by 65 MSMEs surveyed and participating in Enterprise Development programmes are in order of frequency: 1. Business management skills & systems (31%); 2. Networking and business opportunities (14%); 3. Market access (12%); 4. Financial support (9%); 5. Company (marketing /brand) exposure (6%). On the Supplier Development (SD) side, the 5 most common benefits reported by 29 MSMEs surveyed and participating in SD programmes are, in order of frequency: 1. Business management skills & systems (17%); 2. Marketing skills (17%); 3. Access to markets (17%); 4. Financial management skills (10%); 5. Company (marketing/ brand) exposure (10%). The B-BBEE Commission Study (2022) gives us a sense of where we are currently are as a country in relation to B-BBEE ESD compliance. The report underscored a low level of compliance on ESD spending by measured entities. According to the B-BBEE Commission, “in 2021 only 61% of the set targets was achieved for ESD, which is a continuing trend over the past five years (2017: 44%; 2018: 60%; 2019: 51%; 2020: 61%)”. The matter to point at on ESD and its application exceeds the compliance imperative as obligatory legislatively by all economic actors, it is about releasing its might in driving economic inclusion and participation. As
Imtiaz Sooliman – Gift of the Givers: Practicing diversity, equity, inclusion and belonging on a global scale
By Fiona Wakelin “Best among people are those who benefit mankind” Early days Beginning his humanitarian work in Mozambique during the 1990s, Dr Imtiaz Sooliman raised significant funds in just five days to provide boreholes, medical supplies, and malaria medication for the country. His philanthropic work continued in Iraq and Bangladesh – and then the life-changing trip to Istanbul, Turkey, where he received an instruction from teacher Sufi Sheikh Muhammed Saffer Effendi al Jerrahi: “My son, you will form an organisation. The name will be Waqful Waqifin (the closest translation is ‘Gift of the Givers’). You will serve all people of all races, of all religions, of all colours, of all classes, of all political affiliations and of any geographical location. You will serve them unconditionally.” Imtiaz did not speak Turkish but understood the instruction. How was that possible? “When there is a meeting of hearts, language is not necessary.” After receiving this message from the spiritual leader, Imtiaz Sooliman, at the age of just 30, built the Gift of the Givers from humble beginnings into what has become the largest disaster response, non-governmental organisation of African origin on the African continent. He and the team live by the maxim: “Best among people are those who benefit mankind”. He established the organisation with family support – started in a small 12m² room with a fax machine. The first major project was during the Bosnian civil war in August 1992, delivering 32 containers of aid and creating the world’s first containerised mobile hospital in 1993, including surgery theaters, ICU, X-ray, and other medical units. CNN reported the mobile hospital as ‘equal to any of the best hospitals in Europe’. The dedicated team is committed to addressing crisis situations, showcasing innovative problem-solving and the importance of partnerships across sectors. We met at the Arabella Estate after a few months of planning – the Gift of the Givers are in big demand (not surprisingly) and it took a while for us to both be in the same province at the same time. The time flew by and it was so refreshing, and so easy to speak with this ego-free, quick, solutions-orientated, energetic, humanity-first human being. During our conversation he had 4 cell phones on the arm chair, all on silent. There are so many disasters happening all the time around the globe at any given time, I asked Imtiaz how they choose where to go – and where the funds come from: “If a country has hit something major, the head of state must come on world TV and announce they have a problem. Only then will we respond. But sometimes before he or she makes the statement and we hear about, say, a tsunami in Indonesia, an earthquake in Haiti, an earthquake in Nepal, a typhoon in the Philippines, I put my teams on standby. Usually Africa comes first. Money matters? “My spiritual teacher said, ‘You will never need to look for money. People will come to you. You’ll never have to ask for money.’ We never have to go to people to ask for funds. We have no need for fund raisers in our organisation. “Things just happen. Everything falls into place. The teacher said, ‘things will work out for you’ – and they do”. Knysna fire response and Cape Water crisis – diversity in action The Gift of the Givers responded to the 2017 Knysna fires with medical teams, food for firefighters, and essential supplies and set up a warehouse operation in the Checkers parking lot to coordinate massive aid distribution. This was diversity in action with teams of all backgrounds working together. They responded to the Western Cape water crisis by drilling 238 boreholes at a cost of R19-million, saving farming communities and livestock; and successfully navigated the flood response by coordinating multiple stakeholders, with partnerships across political parties, race, and class to reach isolated communities. CSI, ethics, economic philosophy and personal values We spoke about how Corporate Social Investment (CSI) is evolving from ‘ticking boxes’ to meaningful engagement and corporates in South Africa are developing a purposeful CSI focus: “CSI – we don’t just tick the box anymore. Now the CEOs call and ask for us to take them and their staff to be on site to see. To feel what it is like to be on the ground. Big companies like Sibanye-Stillwater, Bonitas, FNB, see first-hand where the CSI money is going. They feel the words of the people. “And we are growing. Now because we have got a new thing called virtual. They call you any time. On 31st December 2024, afterhours, the FNB guys called – ‘We’ve got all these fires in Cape Town. On the 2nd of January, the money will be in your account’. “ And when you think of COVID, the ethical business practices of keeping staff employed – ultimately benefitted the economy”. I had to ask about his take on the ramifications of the Trump administration withdrawing funding from Africa: “I am very happy about it. We should have cut ties long ago. We don’t need to have a begging bowl. We are self-sufficient and have the resources to manage our own needs. Companies are already calling to see how we can fill the gap. America is one country in the world. There are 199 others and we are about to sign an agreement with the Association of Southeast Asian Nations”. And what gives him joy? “The relief of suffering – a mother feeding a child, restoring sight to the blind – when a person has cataracts and they open and they can see. Or they can hear you because of a hearing aid. It’s priceless. Absolutely, absolutely priceless. “When I was in Somalia I saw a child who had been bed-ridden for 8 months and sepsis was creeping into the bone. Nobody could fix it. I brought my doctors from South Africa. They did the operation in 20 minutes. The father gets up and says, I like to appreciate you.
Empowering ourselves: The past is past but the future is not here yet!
By Professor Bonang Mohale, Chancellor of the University of the Free State After World War II, in a new age of empire, great powers aimed to carve up the planet and nations pledged to create a more equal and law-abiding world. Now, Russia, China and the USA are returning to an older model in which powerful countries impose their will. Nearly five years since the COVID-19 pandemic upended the global economy, growth is slow but stable, inflation has gradually declined in advanced economies and trade trends have turned positive. Despite this, there remain challenges such as high public debt burdens, ongoing geoeconomic tensions and the potential impact of industrial policies on smaller countries. Poverty reduction is possible China has lifted over 800 million people out of poverty since the late 1970s. This is the largest reduction in inequality in modern history by focusing on no more than six economic reforms, namely economic growth (which grew rapidly after 1978 with an average annual growth rate of over 9%); infrastructure investment (invested in roads, railways, water supply and electricity); education and health (improved access to education, health care and social security); targeted policies (targeted the most poverty stricken areas with public policies); data collection (used data to identify the poorest areas and their needs and public support and mobilised the public to assess the status of each household). China’s poverty reduction efforts have helped the world achieve the UN 2030 Agenda for Sustainable Development goals. South Africa’s tax base According to the latest tax statistics from the National Treasury and the South African Revenue Service (SARS), 490 676 South Africans earned over R1-million in the 2024/25 financial year. This figure represents 6.7% of the country’s 7.4 million registered taxpayers and marks a significant increase of 82 000 individuals compared to the previous financial year when 408 288 South Africans earned above this threshold. These millionaires, who cover around 50% of all assessed income tax paid in the 2024 tax year, demonstrate the country’s progressive tax regime is in full effect, with the majority of income tax being paid by the country’s richest individuals at R2.2-trillion in gross tax revenue – R87-billion or 4.2% more than in the prior year. Personal Income Tax (PIT) revenue remained the biggest contributor to the tax haul, accounting for 35.7% – R641-billion of the total tax collected. Just 1 660 182 individuals, a mere 2.6% of the country’s 64 million people contribute 76.2% of all personal income tax. The situation is equally concerning in the corporate sector where only 1 051 companies, representing 0.1% of the total, pay 72.3% of all company income tax. Over 30% of the population, approximately 19.2 million people, currently rely on social grants, a figure projected to grow to 19.7 million by 2026/27. This means that about 12% of South Africans who pay income tax are supporting a social safety net for nearly half the population! Youth unemployment Youth unemployment has been at catastrophic levels since ‘two weeks in July 2021’ at 74.9 percent! Four years later, it is still hovering at 60.2% compared to Spain’s 26.6; France 20.5; Italy 17.7; China 17.1; Turkey 15.8; Canada 14.4; UK 14.4; USA 9; Australia 8.8; Netherlands 8.7; Germany 6.5; South Korea 5.5; Japan 3.2 and Switzerland 2.7. It is Mosibudi Mangena who opines that, ‘poverty and inequality are a menacing reality in South Africa. Unless the state and the citizens do something to share the fruits of the economy, things might unravel very soon. It is simply unsustainable to have wealth concentrated in the hands of a minority race whilst the vast majority wallow in abject poverty’. Human rights Human rights are those basic and fundamental rights to which every person – for the simple reason of being human – is entitled. These rights are inalienable – a person has them forever and they cannot be taken away. The natural rights of South Africans received no protection before the country became a constitutional democracy in 1994. Chapter 3 of the Interim Constitution introduced legally protected fundamental rights to South Africa for the first time. Now fundamental human rights are entrenched in Chapter 2 – Sections 7 to 39 – of the 1996 Constitution. The Bill of Rights is arguably the part of the Constitution that has had the greatest impact on life in this country. As the first words of this chapter say: ‘This Bill of Rights is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom.’ It has also been the source of the majority of the groundbreaking rulings the Constitutional Court has handed down. In an address to the South African Constitutional Assembly on 8 May 1996, the day of the adoption of the final Constitution, President Rolihlahla N. Mandela declared that ‘now it is universally acknowledged that unity and reconciliation are written into the hearts of millions of South Africans. They are an indelible principle of our founding pledge – ‘the glowing fire of our New Patriotism’. At the same occasion, Deputy President Thabo M. Mbeki asserted that the Constitution ‘constitutes an unequivocal statement that we refuse to accept that our Africanness shall be defined by our race, colour, gender or historical origins’. Constitutional patriotism The University of the Witwatersrand’s Elsa Huyssteen reminds us that this is a patriotism of new South Africans who do not belong on the basis of race or ethnicity but on the basis of a shared loyalty to a constitutional state and a commitment to national unity, reconciliation and human rights. The creation of such a ‘constitutional patriotism’ is intended to establish the legitimacy of the outcome of the transition as well as to promote national unity and reconciliation, both seen as crucial to the consolidation of democracy in South Africa. Constitutional patriotism is seen as capable of meeting these challenges to the consolidation of democracy in South Africa as it ensures that the principles and values
Let’s debate about BEE – but with respect and nation-building responsibility
By Tshediso Matona (Commissioner: B-BBEE Commission) For me as the Commissioner for Black Economic Empowerment, a positive factor of the current sharp spotlight on BEE is the louder and widening conversation ensuing in the country about BEE policy and legislation. When BEE and transformation are understood as a tool to correct racial inequality that our economy inherited from apartheid and colonialism, it becomes clear that it is a matter of existential importance which we do need conversation about, because transformation is an ongoing project; a work-in-progress. Equally, it is a matter that deserves to be engaged with respect, integrity and nation-building responsibility, because it is about our painful past and our desired future; as such, our debates must be fruitful and take the country forward. Moreover, whatever US President Trump’s quarrel is with BEE, the events ensuing from it serve to affirm to South Africans that transformation is our domestic, sovereign issue, rooted in our circumstances, and best answered by none other than ourselves. This moment prompts us to recall that it is we, the people of South Africa, black and white, who proclaimed in our Constitution that “We Recognise the injustices of the past” and “Believe that SA belongs to all who live in it” and that we commit to “Heal divisions of the past and establish a society based on social justice”; and to this end to adopt “laws and other measures to advance persons disadvantaged by unfair discrimination”, including the use of preferential procurement. Any ideas that lower the bar of our values and ideals seek to place us in reverse-gear as a country when we ought to be accelerating forward. Ironically, BEE follows in the footsteps of affirmative action, a policy born out of the self-same US. It is based on the principle that to achieve social justice, governments are enjoined to take proactive and targeted measures for the socio-economic upliftment and inclusion of certain population groups, as this would not be achieved by market forces on their own. This is practised in many countries and has evolved into formal global policies, such as Diversity, Equity, and Inclusion, or the Sustainable Development Goals under the UN, and the emerging corporate Environment, Social and Governance standards. My view is that the newly emerging challenges against BEE, whether emanating within the country or sponsored from outside, are in fact an opportunity for us to deepen and discipline our dialogue about transformation as a nation. In doing so we need to be honest that transformation is an unfinished business, and to find each other about the imperative for changing the status-quo of living with the worst inequality in the world. To this end, the correct place to proceed from is accepting that BEE was created as a tool to solve the inherited problem of a racially skewed ownership, opportunities, and participation in the economy. At the same time, it is acknowledged that BEE as a transformation tool might not be working perfectly, and indeed many shortcomings and loopholes about BEE are being encountered. But this cannot justify this being mischievously exploited by those who now pretend that the problem for which BEE seeks to solve is no longer an issue. Such mischief amounts to a negation of our collective duty to implement the Constitution and correct the economic injustice inherited from our past Read the full story in the 24th edition of Impumelelo: Top Empowerment and find out what the numbers say about transformation in South Africa.
A new era for South Africa’s legal sector: Proactively embracing the Legal Sector Code
“The debate around the amendments to the Legal Sector Codes is important, but it must also consider the spirit and intent behind the legislation. True transformation requires a deliberate effort to diversify supplier bases and create real opportunities for new entrants to thrive.”
The reality is that South Africa’s agriculture is thriving
By Wandile Sihlobo Since US President Donald Trump commented about his “imaginary” land grabs in South Africa, some among us have started pushing a misleading narrative that agriculture is under pressure and has been failing for a while. The inept municipalities, poor road infrastructure, stock theft, and port inefficiencies all contribute to this narrative of failure and despair. Stories of the failings of land reform farms also add to this sentiment of regression in agricultural progress. But this narrative is far from the reality of the South African farming sector. Regardless of how experts feel about the state’s capacity and the government’s policy stance since the dawn of democracy, the one undeniable fact is that the sector has grown tremendously – and indeed, not failing. Data from the Department of Agriculture shows that domestic agricultural output in 2023/24 had more than doubled the size in 1994. A few sectors did not drive this expansion, but it has been widespread; livestock, horticulture and field crops have all grown enormously over this period. The higher production levels have mainly been underpinned by new production technologies, better farming skills, growing demand (locally and globally) and progressive trade policy. The private sector has played a major role in this progress. South Africa was the world’s 32nd largest agricultural exporter in 2023, the only African country in the top 40 in value terms. This was made possible by a range of trading agreements the South African government had secured over the past decades, the most important ones being with African countries, Europe, the Americas, and some Asian countries. The African continent and Europe now account for about two-thirds of South Africa’s agricultural exports, and Asia is now also an important market. The agricultural subsectors that have contributed most to this progress in exports are fruits, wine, wool and grains. South Africa now exports roughly half of its agricultural products in value terms, reaching a record $13.2-billion in 2023, according to data from Trade Map. The friction surrounding SA-US relations has added to the view that South Africa may be pushed out of AGOA and that agriculture would be under pressure in such a scenario. However, the reality is that South Africa’s agricultural exports directly to the US account for only 4% of the overall agricultural exports. And even if South Africa could be out of AGOA, that wouldn’t mean a blockage, but there would be tariffs of around 3%, reducing the competition of South African products. To be clear, I am not minimising what is at stake; the agricultural products South Africa exports to the US include citrus, nuts, wine, grapes, and fruit juices, amongst other products. For these industries, an exclusion from AGOA would be negative, but it would not be a collapse of SA agriculture. Beyond exports, the increase in agricultural output over the past 30 years is why South Africa is now ranked 59th out of 113 countries in the global food security index, making it the most food-secure country in sub-Saharan Africa. I recognise that boasting about this ranking when millions of South Africans go to bed hungry daily may ring hollow, as I pointed out after a few presentations where I cited these statistics. However, it is essential to note that many South Africans lack access to food due to the “income poverty challenge” rather than lack of availability due to low agricultural output, as in other parts of Africa. South Africa produces enough food but does not export all of it. A lot is kept domestically for the local market. To address poverty, South Africa must ensure employment and that households have sufficient income to buy food. The disappointing part of South Africa’s agriculture is the exclusion of black farmers. As I argued in my recent book, A Country of Two Agricultures, “Nearly three decades after the dawn of democracy, SA has remained a country of ‘two agricultures’. On the one hand, we have a subsistence, primarily non-commercial and black farming segment; on the other, we have predominantly commercial and white farmers.” The book adds that: “the democratic government’s corrective policies and programmes to unify the sector and build an inclusive agricultural economy have suffered failures since 1994. The private sector has also not provided many successful partnership programmes to foster black farmers’ inclusion in scale commercial production. It is no surprise that institutions such as the National Agricultural Marketing Council estimate that black farmers account for less than 10%, on average, of commercial agricultural production in SA.” This lacklustre performance by black farmers in commercial agriculture cannot be blamed solely on historical legacies. The democratic government is also blamed for its inability to support the development of the new crop of farmers. Fortunately, not all is lost. Plans and programmes are in place to sustainably increase the number of black farmers in the sector. The agriculture and land reform plants are not aimed at replacing the existing farmers with new black farmers. The government has around 2.5 million hectares of land to distribute with title deeds to black farmers. This will be “growing the agricultural piece” without threatening the property rights in the country. South Africa’s agriculture is robust and has room for growth. As we progress toward supporting the sector, there must also be room for young people to be included. Wandile Sihlobo is chief economist of the Agricultural Business Chamber of South Africa (Agbiz) Sources: The Conversation | Democratic Alliance | DALRRD | Economist Impact | The Conversation
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