Social and community investment
The group creates value through the provision of goods and services. This is distributed to its various stakeholders as dividends to investors, salaries and benefits to employees, government in the form of taxes, and to communities through community and social investment projects. Where possible, the group promotes local economic development through procurement practices which support emerging enterprises.
Community and social investment spend over the 2011 financial year was R2.5 million (2010: R1.3 million). This increase in expenditure is primarily due to the inception of the Eqstralution project. The underlying philosophy of Eqstralution is to:
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Identify underprivileged children at an early age and enable them to be educated through adopted schools with the ultimate vision of creating technically skilled employable bread winners, and |
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Supporting the adopted schools to ensure that quality technical education is provided, benefiting all learners. |
Spending on Eqstralution accounted for 68% (R1.7 million) of total community and social investment expenditure. The inception of Eqstralution marks a more structured approach to socio-economic development spend, and has been adopted across the group.
Divisions adopted technical schools which will be provided with sustained financial support. It is envisaged that the Eqstralution value chain will eventually support the grooming phase at pre-primary and primary school level, followed by the adoption phase at secondary and tertiary level, culminating in the employment phase, where qualified and skilled individuals are employed by group companies.
The project also aims to change perceptions about technical education, to increase awareness about the possibilities of careers within technical fields. During the 2011 financial year, 11 technical high schools were identified for the initial phase of the project. The group provided nine schools across the country with funding for equipment and support to needy learners, with at least 9 000 learners benefiting. Initial interventions through the project included bursaries, workshop painting and renovation, checking and repairing of equipment.
Targeted future investment in Eqstralution is 1% of annual profit after taxation. With schools identified in each of the provinces, Eqstra is confident that this project will make an impact by enabling individuals in rural and urban areas to become significant contributors to the economy. Additional technical high schools will be included as the programme gains momentum.
Across the group, other ad hoc donations were undertaken during the 2011 financial year as part of the group’s commitment to community investment.
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