INVESTING IN THE COMMUNITY
During the year under review Remgro made two notable donations, which are not included under Remgro’s annual corporate social investment (CSI) below.
A once-off donation of R500 million was made to The South African SME Relief Trust in support of the Sukuma Relief Fund. This Fund was created to provide financial assistance and relief to Small and Medium Enterprises adversely affected by measures taken to contain the spread of the Covid-19 pandemic. By the middle of August 2020, financial assistance of more than R750 million had been committed to more than 3 400 small businesses, positively affecting more than 31 000 employees.
An amount of R25 million was committed to the Khaya Lam project, of which R9 million was allocated during the year under review. This project aims to facilitate the granting of title deeds to qualifying township residents through helping them to break through the bureaucratic lock-jam which has deprived them of this entitlement. The underlying belief of this initiative is that the acquisition of title deeds will provide the owners with unambiguous rights of access to tradeable property assets and thus facilitate their entry into the formal markets. The initiative is currently focused to the Western Cape where it was kicked off.
Remgro’s CSI initiatives and donations programme cover a broad spectrum of society and can be summarised as follows:
- Community development
- Cultural development
- Entrepreneurship, training and education
- Sport development
Remgro aims to maintain a CSI spending of approximately 2.5% of its net free cash flow annually. In this regard, an official CSI committee meets regularly to consider and approve grants to institutions in need. Donations to qualifying institutions are made on an annual basis for a specific period and, although such contributions cover a wide range, there are two noticeable exceptions: political parties and religious institutions. Remgro respects its employees’ choice to participate in these institutions, but does not exercise a choice itself.
During the year under review Remgro’s CSI spend amounted to R25 million (2019: R24 million), as set out in the table below.
|Summary of CSI spend||Year
|Entrepreneurship, training and education||11||10|
Further details regarding Remgro’s CSI initiatives can be found in the detailed Sustainable Development Report