Transnet Foundation OpEd Feature

Working smart in CSI

Cynthia Mgijima, CEO of the Transnet Foundation, discusses the foundations smart operating model Im frequently asked whether theres a winning formula or an ideal model when it comes to managing corporate social investment, especially for state-owned enterprises like Transnet. This is a difficult question to answer, as the environment in which we operate is constantly evolving, and there are many different challenges to take into account. That said, Transnets status as a state-owned entity means the foundation has to have an inclusive focus; one which is aligned to governments strategic objectives and the concept of the developmental state. As Africas largest integrated freight transportation company, we have an obligation to contribute to broad-based socio-economic development throughout our home country, and the way in which the foundation is structured and run has to reflect this.

Within that context, the Transnet Foundation focuses on four key objectives.

Firstly, we aim to deliver sustainable development projects through the efficient use of resources. We also aim to ensure that the programmes we fund and the projects we undertake contribute to the social and economic upliftment of vulnerable communities in particular. On an administrative level, we need to ensure that Transnet can report on its contribution to sustainability in line with the requirements of King III, and on the way in which its CSI programme reflects the companys strategic goals. And finally, we need to be sure that all of our activities demonstrate sound corporate governance, and that they are an expression of Transnets commitment to being a good corporate citizen. At the heart, the company believes that sustainability is achieved by investing in a nations people, and this is why the foundation invests R180 million a year into a variety of CSI programmes and projects. These fall into four portfolios, namely education, health, sport and our

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unique container assistance programme. All of our efforts in these areas are supported by the Employee Volunteer Programme, which gives Transnet employees the chance to reach out and assist on specific projects in the communities in which they live.

Moving beyond structure to methodology, the feature that most defines our work is that we aim to assist communities as a whole, and dont consider applications for assistance from individuals. Implementation takes place in one of three ways: through Transnet Foundation programmes; through co-funded projects; or through grants made to established non-profit organisations working in target communities. We operate in this way to ensure that as many people as possible can benefit from the foundations CSI programme, and that the allocation of funding is equitable.

An example of one of our many programmes, in this case in the education portfolio, is the recently launched Transnet Foundation Orphaned Youth Development Programme. The first phase of the programme involved the recruitment of ten orphaned youngsters in KwaZulu Natal, Mpumalanga and North West, which was done in association with the Independent Schools Association of South Africa (ISASA). After a comprehensive selection process, they were then placed at six carefully-selected private schools, where Transnet will meet all of their expenses. They will also be supported my dedicated mentors and, once they have completed their schooling, the foundation will meet the cost of their university studies. The Transnet Foundations work is nevertheless separate from and in addition to the Transnet Bursary Scheme, which has been put in place to assist qualifying individuals to undertake studies in the fields of civil, electrical, electronic, industrial and mechanical engineering. In this way, Transnet can support promising individuals in fields of study that add value to the company without in any way compromising its broader development objectives.

Another methodology that defines the way in which we operate is that we use existing resources to reach some of the countrys most vulnerable communities, extracting maximum value from the original investment. An example of the way in which we do this is the Transnet Foundation Phelophepa Health Care Train, the worlds first primary healthcare hospital on wheels, which is run in conjunction with the Department of Health. Since its inception in 1994, the train has reached over 22 million people with healthcare services that include the foundations HIV/Aids Action Programme. The train is on the rails for 35 weeks a year, visiting a different rural

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community every week. It consists of 18 fully-equipped coaches that provides screening, primary healthcare and even counselling services.

So successful has this initiative been that Transnet launched a second train last year, and the two trains together will now take quality healthcare to 180,000 people in remote areas every year. The foundations Container Assistance Programme is another example of using existing infrastructure as a delivery channel. In this case, we use retired freight containers to provide critical safety, security and educational infrastructure in priority areas. Again, this extracts maximum value from infrastructure - in this case rolling stock - and enables us to make an immediate difference where its needed most.

In short, our model is to work smart and to reach as many people as possible with essential services. In this way, we aim to empower them, to close the inequality gap, and to make a meaningful contribution to socio-economic development in South Africa.

For more about the Transnet Foundation, visit http://www.transnetfoundation.co.za/

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