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Media release

Absa Appoints Group Executives In People Function

Absa Appoints Group Executives In People Function

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Absa Group Ltd. today announced the appointment of three Group executives, with effect 1 January 2023, signalling further progress in its ambition to create a winning, talented and diverse team.

“The appointments build on the positive momentum that was achieved through Executive Committee changes and operating model refinement earlier this year,” said Absa Group Chief Executive Officer, Arrie Rautenbach. “The appointments strengthen our leadership team, adding to the bench of skill, experience and diversity appropriate to, and supportive of our ambition to be a leading Pan-African bank,” he said.

The appointments include:

Jeanett Modise, Absa Group Chief People Officer

Jeanett is an accomplished human resources (HR) professional with extensive experience at executive level, driving HR strategy, operations, turnaround and digital transformation in local and global organisations. Jeanett has worked with executive teams and boards for more than 20 years and has held several Board positions.

Johnson Idesoh, Absa Group Chief Information and Technology Officer

Johnson has 25 years of experience in leading digitalisation in regulated industries and a proven track record in delivering and embedding digital strategies that improve customer experience and increase digital customer numbers.

Sydney Mbhele, Absa Group Chief Brand, Marketing and Corporate Affairs Officer

Sydney has a 25-year career in the brand-building and marketing sector, working at blue-chip companies. He was nominated as 2022 marketer of the year (South Africa) and rated as a top five Chief Marketing Officer in Africa and the Middle East in 2021.

All three executives have significant experience, having operated across multiple markets on the continent and elsewhere.

“We have made significant progress in delivering on our strategic agenda and in strengthening leadership and organisational capability this year,” said Rautenbach. “We are well positioned for commercial outperformance going forward.”

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Media release

Absa Purchasing Managers’ Index (PMI) Rose To 52.6 Points, Up From 50 In October

Absa Purchasing Managers’ Index (PMI) Rose To 52.6 Points, Up From 50 In October

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The seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose firmly back into expansionary terrain in November. The index rose to 52.6 points, up from 50 in October and an average level of 49.6 recorded in the third quarter. On its own, this suggests that the manufacturing sector could book another slight expansion in the fourth quarter. However, next week’s official data on factory production in October – and the extent to which this was impacted by the prolonged strike at Transnet – will help to firm up this view.

Encouragingly, both business activity and new sales orders improved for a second straight month after both had plunged lower during the load-shedding-heavy month of September. New sales order volumes expanded for the first time since May 2022. Even though it improved, the activity index remained stuck just below 50 points, while the employment index also lingered at a much lower level. As cautioned in the past, higher demand and output levels would likely need to be sustained for some time for any improvement in staffing levels to occur. Encouragingly, purchasing managers turned more upbeat about business conditions going forward. The index tracking expected business conditions in six months’ time rose to 51.7 from 49.2 in October.

The purchasing price index remained largely unchanged in November. This would correspond to price pressure at the start of the production process remaining elevated, but less intense than at the beginning of the year. The recent decline in the Brent crude oil price as well as a somewhat stronger rand exchange rate (against the US dollar) bode well for the general downward trend to continue through the final month of the year. Still, with load-shedding expected to continue, the (more) frequent usage of diesel-powered generators adds to the cost burden of producers.

Please note: December 2022 PMI will be released on 6 January 2023.

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Media release

Absa And Sanlam Combine Investment Management Businesses In SA

Absa And Sanlam Combine Investment Management Businesses In SA

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Sanlam and Absa are pleased to announce that all suspensive conditions have been successfully met, allowing implementation today (1 December 2022) of a transaction that combines their investment management businesses in South Africa.

The transaction sees Absa exchanging its investment management business, Absa Investments, for a stake in Sanlam Investment Holdings Proprietary Limited (SIH). Absa Investments comprises Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management.

The conclusion of the transaction significantly strengthens SIH’s offering through enhanced scale, broader distribution reach and a more holistic range of investment solutions. This further enhances SIH’s position as one of South Africa’s largest black-owned asset managers.

Absa has also entered into a 10-year distribution agreement with SIH, meaning the expanded operations will utilise the distribution networks of both Sanlam and Absa, which significantly broadens market reach for the enlarged SIH.

Sanlam Investment Group CEO, Mr Carl Roothman, said: “We are excited that the agreement to integrate the investment management businesses of Sanlam and Absa has been concluded. Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations.”

“Scale is critical in driving the product and service innovation required to meet clients’ financial goals. Combined capabilities, expertise and commitment to our clients will position us to be the preferred investment solutions provider in South Africa. Our promise is to serve our customers with pride and deliver world-class client experience and solutions,” Mr Roothman said.

Commenting on the transaction, Absa Group Financial Director, Mr Jason Quinn, said: “We are delighted with the successful conclusion of the transaction, which delivers the scale, capabilities and transformation which we view as essential to achieving strong and sustainable growth. Absa remains committed to the investment management sector through its shareholding in the combined entity and a 10-year distribution agreement, which will help us to offer an enhanced customer value proposition by creating a deeper, broader range of investment solutions for our clients.”

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Absa’s Latest Pricing Overhaul Takes Pricing Relief To R1 Billion For Primary Banked Customers

Absa’s Latest Pricing Overhaul Takes Pricing Relief To R1 Billion For Primary Banked Customers

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Upcoming product enhancements, including free Absa Rewards, and 2023 pricing revisions aimed at rewarding Absa’s best customers with significantly enhanced value.

Building on Absa’s half a billion rand pricing relief efforts last year, including below inflationary increases throughout the Covid-19 pandemic, the bank is intensifying support for loyal consumers with a further R500 million price reduction across Everyday Banking product offerings in 2023.

From 1 January 2023, the bank’s new-look pricing comes into effect, providing primary banked* customers with superb value for money while staying true to Absa’s commitment of addressing customer pain points. Wide-ranging enhancements to its pricing and fee structure and investments in key, market defining proposition refreshes throughout 2023 will offer unrivalled value.

Notably, Absa Rewards will now be free with more exciting enhancements on the horizon for primary banked customers including a new VIP Rewards programme. Headline changes in the latest pricing overhaul include more than R260 million in customer savings on Absa Rewards, and R230 million pricing relief for Flexi Account customers, with up to 90% reductions in key day-to-day digital transaction fees.

There will be no increases to monthly fees on Absa Transact, the cheapest account in the market** and fees for Digital Payments and External Debit Orders are slashed by 90% for Youth customers. Gold Value Bundle and Premium Banking customers will now benefit from free CashSend transactions as part of their monthly cash bundles keeping in line with the shift in consumer behaviour to digital banking.

“Remaining relevant to the rapidly changing needs of our customers and driving primacy is our highest priority. Absa’s latest pricing overhaul, and the positive progress we have made with previous pricing relief efforts is aimed at heavily rewarding our primary banked customers for their support. The raft of changes and impending product refreshes will provide best in class value. In essence, the more customers use Absa, the more they save,” says Christine Wu, Managing Executive: Consumer Product, Absa Everyday Banking.

Monthly fees on our credit cards remain unchanged for 2023 and customers who choose one of our market leading bundles can benefit from zero credit card monthly fees.  Gold and Premium transactional package monthly fees have been marginally increased for the first time in three years and cash-handling fees will see adjustments reflective of the high cost and risk associated with cash.

“Rewarding our loyal, primary-banked customers is at the heart of Absa’s pricing philosophy. This review lays the groundwork for wide-ranging product refreshes in 2023, which include a selection of new transactional packages and exciting personalised offers through our VIP programme. These market defining enhancements are based on fundamental shifts in transactional and banking behaviour noted over the past few years, and crucial insights gained from Absa’s previous pricing relief efforts,” Wu adds.

As a full-service bank, Absa offers the convenience of a digital bank backed by the benefit of the human touch through our extensive branch and frontline network. We are ready to assist,” says Wu.

As part of Absa’s 2023 pricing review, specific highlights include:

  • Absa Rewards Now Free for Everyone
    • The Absa Rewards monthly fee of R23.20 has been waived, making it free for all Absa Rewards customers.
    • There will be some new and exciting enhancements to the programme in early 2023 for primary banked customers, who will receive superior value from Absa Rewards.
    • Dedicated Rewards Hub and new VIP programme to be launched in 2023 with a refreshed set of benefits to our customers.
  • Youth and Students Continue to Bank for Free
    • Absa Student and youth accounts still carry zero monthly fees and continue to benefit from free embedded benefits such as 100mb free data per month and free vouchers.
    • In addition to unlimited free Absa ATM Cash withdrawals, Mega U customers to bank digitally with Absa will further benefit from 90% cheaper Digital Payments and External Debit Orders.
  • No Monthly Fee Increases for Absa Transact
    • Absa Transact customers continue to benefit from R5 000 free lump-sum death benefit and with zero monthly fee increases in 2023.
    • Whilst ATM cash withdrawal fees will increase, customers have the benefit of unlimited free card-swipes, till-point withdrawals and rock bottom R1.00 per transaction digital payments and debit orders.
  • Major Relief for Flexi Account customers
    • Flexi Account customers will benefit from the following price reductions:
      • Till-point withdrawals – Now free (Previously R2.00)
      • Debit Card Swipes – R1.00 per transaction (Previously R4.00)
      • Digital Payments – R1.00 per transaction (Previously R10.00)
      • External Debit Orders – R3.50 per transaction (Previously R10.00)
    • Monthly fees will increase to R40.00 pm but customers still get unrivalled value with free R15 000 lump-sum death benefit included as part of their monthly fee worth over R90.00pm.
  • Digital Enhancements to Gold and Premium Bundles
    • To ensure we remain relevant to our evolving customers’ needs as they shift to digital banking, we now include cash-send in our Gold and Premium monthly free cash limits which will be R4 000 and R5 000 respectively.
    • Both offers continue to benefit from unlimited free digital transactions including card swipes, till-point withdrawals, debit orders, digital payments and transfers.
    • Gold and Premium Monthly fees will increase to R115 pm and R200 pm respectively (First time in three years).
    • Gold and Premium customers will continue to benefit from up to R25 000 free lump-sum death benefit.
    • Customers who seek to apply for an overdraft will now benefit with a flat R175 initiation fee.

* Primary banked customers are classified as those who have their salaries deposited into their transactional account.

** According to the Solidarity Banking Report 2022 Absa Transact is the cheapest account in South Africa.

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Media release

Black Friday Customer Spend Set To Grow In November 2022

Black Friday Customer Spend Set To Grow In November 2022

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Absa processed over R60 billion worth of transactions last Black Friday, a trend which is expected to continue this year.

As the first Black Friday falling outside of lockdown restrictions in two years, Absa anticipates further growth in debit and credit card spend as one of South Africa’s busiest shopping periods approaches.

“Following a record 200% increase in e-commerce levels in 2020, and a 231% increase in debit and credit contactless card volumes in 2021, Absa is bracing itself for another intense Black November. Last year, approximately 2.1 million Absa cardholders spent a whopping R1.3 billion on Black Friday marking a 10.71% increase in spend on the day since 2020,” said Christine Wu, Managing Executive: Consumer Product, Absa Everyday Banking.

“Undoubtedly supported by an ever-growing list of innovative payment options including Apple Pay, Garmin Pay, Samsung Pay, Fitbit Pay and QR Payments, Absa was once again at the forefront of payment innovation this year and was one of the first banks to offer Google Wallet, significantly widening the array of payment options customers now enjoy. With cutting-edge payment options, we expect another busy Black Friday and indeed Black November,” added Wu.

With the value of e-commerce transactions stabilising from 2020’s unprecedented growth, along with the growing trend of retailers offering specials throughout November, and not just on Black Friday, Absa expects this to be reflected in greater activity over the entire month.

This year, to celebrate Absa’s wide range of digital payments, Absa Rewards customers will earn double cashback on their shopping from 23 to 30 November 2022, based on their Rewards tier, with a maximum earn of 60% (this applies to both Bank earn, and Partner earn). To qualify for double earn, customers simply need to pay with their Absa Credit and Debit cards and complete at least one Absa Advantage challenge on the Banking App in the three months leading up to Black Friday.

Don’t fall victim to Fraud this Black Friday

As Black Friday approaches, fraudsters will be in overdrive trying to scam unsuspecting consumers. Fraudsters will use this as an opportunity to dupe customers into believing that they are engaging with legitimate organisations with the sole purpose of committing fraud for personal gain.

Card and Digital payments are great mediums to perform secure payments – secure channel using the mobile banking application to authorise transactions. Black Friday will present rogue websites or platforms where “once in a lifetime” specials are presented. Always validate the credibility of the website or email offers. Consider the products offered and identify comparative prices for similar goods or services. Assess if the company/party presenting the offer is credible and attempt to validate the company. Search for reviews and possible complaints linked to the party offering the special. Consult legitimate parties offering similar products to sense check the offers. Lastly, use the “Account Verification Service” offered on Absa Online to validate the account holder against the party offering the goods or services.

Be vigilant for fraudsters who will attempt to social engineer you i.e. Voice call. Fraudsters cannot access the secure environments (your bank account) as they do not have the “keys to the safe”. They therefore need to contact you as the customer and attempt to convince you to compromise the “keys to the safe”. The “keys to the safe” include your Card CVV, Card expiry date, Online Password/Passcode and Online PIN. Fraudsters also need you to approve transactions and will present different scenarios to convince you to approve the transactions they’re trying to initiate.

The typical voice call social engineering will start with a friendly voice, panic of possible fraud and the presentation of credible information i.e. your ID number or account number. The party will require your participation and will need you to approve transactions to reverse fraud or provide a service. Absa will never ask our customers to share their “keys to the safe”, approve transactions to reverse fraud or transfer your funds from your account to a safe Absa account. If asked for any of this drop the call and contact the Fraud Hotline 0860 557 557. Customers can rest assured that Absa’s systems are world-class, and we have a market-first digital fraud warranty for customers who bank using our mobile banking app – signaling our confidence in the security of our app as the safest way to bank.

Tips to avoid fraud:

So how does one avoid falling victim to scams/schemes? For every claim made by fraudsters, we suggest the following response:

False promises made by fraudsters Response
“It is a once in a lifetime opportunity.” If it’s too good to be true it probably is fraud
“It is urgent and requires swift action.” Pause and think before you respond. If unsure drop the call and contact the Fraud Hotline.
Out of the blue contact to offer you opportunities you have not asked for Always question surprise calls from unknown parties and delay to validate yourself.
“You have to download software or material.”

Never download software or material on instruction. Ensure your anti-virus software remains updated.

“Please provide me with your ‘keys to the safe’ (logon credentials, card details).” Never share your “keys to the safe” (logon credentials, card details) with anyone
It requires your electronic approval (online approval or OTP) Never approve anything unless you have initiated the transaction
It requires advanced payments/deposits Do not make advanced payments/deposits to strangers. Research the supplier and validate the credibility and relationship to the account i.e. Account Verification Services
It cannot be validated by a 3rd party Use your trusted browser and combine the institution and scams/schemes during a search
Access your payments using the hyperlink supplied Always access Absa online banking by typing in the Absa website in your browser.
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Media release

Absa Funds The First Renewable Energy Projects

Absa Funds The First Renewable Energy Projects

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Absa funds the first Renewable Energy Projects to reach Financial Close in Bid Window 5 of the South African REIPP Programme

Johannesburg, 14 November 2022–Absa acted as the joint mandated lead arranger and lender for two of EDF  Renewables’ renewable  energy  projects  which  reached  financial  close  on 10 November  2022.The  projects  comprise two 140MW  wind  farms which  will be located in the Northern Cape and developed at a total estimated capital cost of R7.7billion.

These two projects will be the first of three projects by EDF Renewables to reach financial close under the 5th bid window of the South African Renewable Independent Power Producer (REIPP) programme. EDF Renewables’ third  project  under  Bid  Window  5 is expected  to  close  soon, bringing the total project capital cost to an estimated R11.5 billion.

These projects are being developed by EDF Renewables as the lead sponsor together with Gibb Crede Wind  Farm  Investments  and  H1  Holdings. The  total  project size for  the  three  projects combined will be 420MW(3 x 140MW each).The power generated will be supplied to Eskom under a 20-year power purchase agreement.

“Absa continues to support the South African renewable energy programme, having now financed over 3.5GW’s of projects since the inception  of  the  programme more  than  a  decade  ago. This transaction strongly demonstrates our ongoing commitment to financing clean energy projects and the acceleration of investments that make a sustainable impact on the communities we serve,” says Shaun Moodley, Principal within Absa’s Resource & Project Finance team.

The  financing  of  projects in  this sector is  in  line  with Absa’s sustainable  finance  goals, which include helping our clients on their journeys to become sustainable and also assisting Eskom with transitioning  from  fossil  fuels  to  renewable  energy  sources,  thereby  significantly  reducing greenhouse gas emissions in South Africa. The REIPP programme is critical in helping Eskom to add renewable power generation capacity to the grid in line with the country’s energy transition objectives and sustainable development goals,” says Moodley.

EDF Renewables is a locally based, fully integrated independent power producer that develops, finances,  builds,  owns  and  operates  commercial  renewable  energy  generation  facilities. It’s a subsidiary  of EDF  Renewables, the  renewable  energy  arm  of  global  utility  EDF,  whose expertise include wind, solar PV, battery storage and hybrid solutions.

The EDF Group is a lead in utility and one of the biggest power producers in the world with a total installed generation capacity of 122 GW .EDF Renewables South Africa has contributed four wind farms to the South African (REIPP) programme already and Absa is privileged to lead these two projects to close, contributing 280MW to the grid.

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Absa Gets Sustainability Linked Term Loan Facility

Absa Gets Sustainability Linked Term Loan Facility

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On behalf of Absa Bank Limited (the “Borrower” or “Absa” or the “Bank”), Bank of America Europe Designated Activity Company, Industrial and Commercial Bank of China Limited, London Branch, SMBC Bank International plc and Standard Chartered Bank (together the “Bookrunners” and “Coordinators”) are pleased to announce the launch of a $300m Term Loan facility (the “Facility”).

The Facility has an initial tenor of two years, subject to an extension option available at the Borrower’s discretion to extend the maturity by a further one-year at the end of the initial two-year tenor. Theproceeds of the Facility will be used for general corporate purposes including, but not limited to trade related finance. The Borrower may elect to upsize the Facility in the event of an oversubscription in syndication.

The Borrower
Absa Group Limited was founded in 1991 in Johannesburg South Africa. In 2005, Barclays acquired a majority (56.4%) stake in the group, eventually renaming the group to Barclays Africa in 2013. Barclays Bank divested its majority shareholding in 2018 and Barclays Africa Group Limited was officially renamed Absa Group Limited (“Absa Group”) where it started trading under its new name on the Johannesburg Stock Exchange. The Absa Group is one of Africa’s largest financial services providers with a presence in 12 African countries, as well as the UK. Absa Bank Limited is a 100% owned subsidiary of the Absa Group.

Absa Bank Limited (rated Ba2 by Moody’s) is incorporated and domiciled in South Africa and provides retail, business, corporate, investment banking, and wealth management products and services. The Borrower is one of South Africa’s largest financial services organisations, serving retail, business and corporate customers and clients in South Africa. The Borrower and its subsidiaries operate primarily in South Africa and employ 35 267 people. As at 31st December 2021, the Bank’s full year results reflected a total income of ZAR 85.8bn with headline earnings of ZAR 18.6bn. Total assets were ZAR 1,637bn of which ZAR 1,017bn were loans and advances to customers.

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Absa L’Atelier 2021 Ambassadors Joint Exhibition

Absa L'Atelier 2021 Ambassadors Joint Exhibition

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Absa is proud to extend an invitation to the public to the upcoming Absa L’Atelier 2021 Ambassadors joint exhibition. The exhibition, supported by the theme ‘Refuge: An uncommon home’, will be hosted by Absa from 17 November 2022 until 27 January 2023.

This collaborative exhibition will showcase recently produced artworks by the 2021 Absa L’Atelier Ambassadors Dr Adelheid Frackiewicz from South Africa, Ayobola Kekere-Ekun from Nigeria, and Michael Blebo from Ghana – before travelling to each of the winner’s respective countries in 2023.

Through their art, these three artists undertook a journey of self-reflection, during which their art-making process allowed them to reflect on their personal trauma, addressing their fear of what was and what might be, while giving them the strength to face their anxiety about the unknown.

Using a combination of found objects and traditional art materials, the production of their eventual artworks has been a delicate yet challenging process, allowing each artist an opportunity of find refuge and tranquillity in their own space.

Absa Senior Specialist Art Curator, Dr Paul Bayliss, says they chose the theme as it empowers the creation of artwork through either painting, sculpture and/or installation, which involves processes that allow the artist to think and work through their anxieties regarding trauma.

“These anxieties stem from a lost childhood due to trauma, a fear that something could happen or due to intergenerational anxiety passed down. It is through reimagining their home, which is not only a physical space of materiality, that it becomes a refuge from what was,” he says.

The artworks in the exhibition combine painting, sculpture and installation; artworks that explore the element of form, space, and time, presenting the audience with a shifting perspective on materiality.

“This exhibition is in line with our ethos of making possibilities come to life for visual artists and we are using this to launch new works by our 2021 Absa L’Atelier Ambassadors. In addition to this collaborative exhibition by these three young talented artists, each artist will, within the next five years, be taking up a solo exhibition in the Absa Gallery,” he adds.

Refuge: An uncommon home will launch on the Absa Art Hot Spot on Thursday 17 November and will be open for public viewing at the Absa Gallery in Johannesburg from Friday 18 November 2022 and run until 27 January 2023.

The 2023 competition is open for entries from 1 April to 31 May 2023. For inspiration and further information visit the Absa L’Atelier website.

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Our Voices

Collaborative Solutions for Education and Employment Access

Collaboration is key to addressing access to education and employment opportunities

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By Dr Reaan Immelman, Head: Education Delivery 

According to Stats SA, 63.4% of South Africa’s unemployed people are between the ages of 15 and 34, and more than half of South Africa’s youth say that they don’t have the financial means to pay for tertiary tuition. Eighteen percent of 18-24 year olds say that they don’t attend any form of post-matric education because their poor school level performance prevents them from participating.[1]

It’s clear: the burden of South Africa’s heart-breaking unemployment rate rests on young people.

And despite data from 2018 indicating that the number of graduates from public universities more than doubled from 2000 to 2016, the sector still faces challenges in poor completion rates, or longer than usual study terms, with some students taking up to six years to complete a three-year qualification.

Furthermore, many school leavers and graduates lack the essential skills required to participate in a formal working environment, while others, who could potentially become entrepreneurs and employers themselves, don’t have the knowledge or insights into how to kickstart their own futures.

In its commentary on youth unemployment figures for the first quarter of 2019, Stats SA noted that ‘graduate unemployment is still lower than the rate among those with other educational levels, meaning that education is still the key to these young people’s prospects improving in the South African labour market’. [2]

Government is working hard to address challenges in the system, with Basic Education Minister Angie Motshekga noting earlier this year that the Department’s focus is on re-engineering the system to be faster and smarter, including compulsory early childhood development, decolonising education, and adding new subjects in response to the fourth industrial revolution, such as coding and robotics.[3]

While Government’s commitment to free education has welcomed many more students into tertiary education at universities and technical vocational education and training (TVET) institutions, this is only available to households that earn less than R350,000 per year. Families that earn more than that are expected to pay fees – but many of these are not eligible for study loans, and cannot afford tuition fees despite being in a higher income bracket.

With the poorest of the poor being looked after by government, and wealthy families able to afford to send their children to their tertiary institution of choice, it’s this ‘missing middle’ of families with an income of between R350,000 and R1 million per year that need external support if they are to avoid adding even further to unemployment statistics.

Any engagements that intend to make it possible to bridge the gap between education and the world of work must be grounded in an appreciation that a comprehensive approach to tackling these challenges must focus both on supporting learners’ access to education, as well as supporting the administrators and institutions that deliver it.

Contributing to systemic structural change in the education eco-system can be achieved by creating platforms to address knowledge gaps, providing opportunities to increase the employability prospects of young people, and supporting institutions and administrators with technical assistance to improve the delivery of quality education.

This can be done through a range of collaborations that focus on education delivery, education reform, strategic engagements and thought leadership, and colleague engagements.

Adopting a global view of addressing unemployment has made some offerings available to users further afield than South Africa. For example, the Ready to Work platform issued globally, and provides learning material that will help young people develop work skills, people skills, money skills and entrepreneurial skills. Young people can select their own learning pathway depending on individual needs and complete the learning online using computer, tablet or mobile platforms. The programme has been immensely popular, with close on 200,000 people having completed modules since 2017.

With critical thinking being a vital skill in the workplace, partnering with Tshimong to roll out the National High School Debating Challenge, supported by a podcast on Cliff Central, has given learners across the country an introduction to this platform.

A key element of employment – and even managing unemployment – is financial literacy. Partnering with accredited training companies across the country to offer face-to-face consumer financial education interventions are appreciated by all beneficiaries. Partnerships with the ASISA Foundation Trust, specifically in the TVET college sector, assisted students to be more moneywise.

A partnership with the Gordon Institute of Business Science gives high school learners a platform to define and voice their vision for South Africa, and includes activities where learners can engage with policymakers and peers about issues that define the country’s future.

Collaborating with the Department of Basic Education and the Maharishi Education for Invincibility Trust has made the delivery of the department’s employability, entrepreneurship and education (E-cubed) programme to 2,000 learners possible, with the hope of inspiring every single one of them to complete school, study further, or even to start their own businesses.

Also collaborating specifically with the Gauteng Department of Education in its Schools of Specialisation programme means that these schools will be able to offer specialised curricula, improving learners’ skills and chances of employment.

These are in addition to scholarship programmes that give access to tertiary education to students that would otherwise be excluded from these life-changing opportunities. Scholarships for 50 of the Mandela 100 Scholars to attend the African Leadership University (ALU) in Rwanda are also part of a global approach to resolving access to education and employment, with a particular focus on empowering women.

Good corporate citizenship means making – and keeping – a social promise to be an active force for good across all communities in which a business operates, making it possible for people to access the tools they need to change their circumstances and become active in the workforce. At a time when youth unemployment is one of the biggest threats facing our young democracy, there simply is no other choice to make.

[1] https://www.southafricanmi.com/education-statistics.html

[2] http://www.statssa.gov.za/?p=12121

[3] https://businesstech.co.za/news/government/350805/the-big-changes-coming-to-south-african-schools/

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Our Voices

Supporting Resilient Food Systems In The Face Of Growing Food Insecurity

Supporting resilient food systems in the face of growing food insecurity

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By Babongile Mandela: Absa, Senior Manager – Strategic Initiatives, Corporate Citizenship and Natalia Olszewska-van der Merwe: Absa, Senior Manager – Corporate Citizenship

According to the UN’s Food and Agriculture Organization (FAO), more than one third (282 million) of people affected by hunger in 2020 were in Africa. When considering emerging climate risks, we cannot ignore food security and the viability of the agricultural sector. Food security relates to adequate household and community nutrition, while viability relates to the future of subsistence and commercial agricultural-based activities.

Each of these topics and their interaction is particularly relevant in the African context, where issues surrounding food stability, food availability and access to food are exacerbated by prevalent socioeconomic and geopolitical challenges, governance failures and unfolding climate change effects.

Affordability, access and availability of food and its impact on communities

Our current global food system requires more resources than we can sustainably afford – and it isn’t working: more than 800 million people are malnourished across the world, and increasingly frequent and intense extreme weather events threaten major food sources. Africa is particularly at risk: approximately half of Africa’s population experiences food insecurity and the continent is warming more rapidly than the rest of the world.

The reality is that as risks to food supply rise, access to sufficient food falls. Extreme climate events can have dire consequences for seasonal productivity. Long-term climate change has the potential to cause once suitable farming regions to shift or become barren, affecting the supply and price of local food. As a result, individuals may struggle to find and afford food, which has a knock-on effect on households and subsistence farmers, and communities at large.

What can we do about it?

Governments, businesses and individuals need to understand the risks of climate change to food security and the viability of the agricultural sector and take mitigating actions. This will require integrated policies and actions along the entire food supply chain.

At the level of individuals, our diet is the biggest contributor to climate change. It is now clear that the production of meat and dairy contributes significantly to biodiversity loss and higher levels of methane in the atmosphere which, in turn, accelerates global heating.

A recent Knorr survey of South Africans found that we tend to eat about a third of the recommended quantity of vegetables and double the quantity of meat. These findings, which show a meat-eating culture across regions and demographics, illustrate the need for South Africans to shift to more sustainable diets for our own and the planet’s health. Key to note is that sustainable diets can include meat consumption, and need to be considered in relation to the circumstances that people find themselves in.

FAO defines sustainable diets as those “with low environmental impacts, which contribute to food and nutrition security and to healthy life for present and future generations. Sustainable diets are protective and respectful of biodiversity and ecosystems, culturally acceptable, accessible, economically fair and affordable; nutritionally adequate, safe and healthy; while optimising natural and human resources.”

Over the past few years, we’ve seen some of these trends in the food industry and in-home cooking: think of the emphasis on eating seasonal, regional produce to support local ecosystems and economies, and on moving towards flexitarian or plant-based diets to make better use of natural resources and improve health. Globally and in South Africa, many of us are becoming more conscious of where our food comes from, how it is grown and what it does to our bodies and our planet.

The long-term challenge of inequality and poverty in South Africa, however, which has been exacerbated by COVID-19, means that the majority of our people do not have the luxury of choice. One way to increase the number of sustainable diets, then, is to enable communities to become more resilient and self-sufficient by growing local, sustainable food.

As part of our efforts to bring possibility to life, Absa supports community-based agriculture initiatives, households and small community groups such as schools, to become more food-secure in an environmentally conscious manner.

We profile two initiatives below:

How can we nourish ourselves and our communities?

The Agricultural Growing-to-Market Project/Food Security Programme, funded by Absa in Gauteng, in partnership with Hand in Hand Southern Africa and the Agricultural Development Agency, focuses on developing small-scale vegetable gardens and transferring gardening skills to community members. The aim is to build a sustainable food system, improve health and nutrition, and create opportunities for members to earn an income by selling surplus vegetables. Participants learn primarily hydroponic farming techniques.

To date, over 600 community members have participated in the project, which may be scaled up to other provinces around the country. Diana Sekese from Olievenhoutbosch said: “I am delighted to have participated in the project. I was equipped with a unique skill that I didn’t have, and I will use what I learned to continue with vegetable farming”. Over time, successful participants will receive support to develop their small-scale gardens into larger agricultural cooperatives and, eventually, agribusinesses in the community.

Reel Life NPC is the non-profit arm of Reel Gardening, and shares its focus on agri-education and complementary products to create systemic change for food abundance. The Reel organisation’s seed tape kits enable anyone to start a growing journey, taking amateur gardeners from seed to harvest through a simple, daily step-by-step process. Success in growing crops can foster confidence to take the leap from backyard grower to future commercial contract grower.

As Donald from Daveyton, Johannesburg, said: “I never thought I could grow my own food. I was scared to try as I didn’t know where to start and I thought I didn’t have enough space or education. Now my backyard feeds me and I am proud of the vegetables that I grow. Thank you, Reel Gardening, for making it so simple.”

Absa’s partnership with Reel Gardening supports:

  • Households – providing food parcels (as immediate food relief) and household gardening kits to 3 000 households across the Eastern Cape, Gauteng and Limpopo. The kits, accompanied by an app with learning materials and tracking capabilities to guide households in managing their gardens, enable households to grow fresh produce for a family of four for a year.
  • Schools – establishing one school garden in each province, and providing class and learner growing kits to instil a passion for growing. This initiative is aligned with the Curriculum Assessment Policy Statements. Reel Gardening is training school employees responsible for the gardens to manage them effectively and will provide seeds annually.
  • Individuals – Absa employees have participated by purchasing their own growing kits to plant home gardens, and the company has matched employee contributions by purchasing more class and learner kits.

These initiatives give households and communities the skills, knowledge and tools to grow fresh produce despite limited space, water and time. This opportunity, along with the option to sell surplus produce to local agri-hubs where feasible, helps us to contribute to breaking the cycle of poverty.

There’s much more to do, but initiatives such as these are one small step towards more nourishment for our bodies and the planet – and every step counts.