Corporate social investment

AECI has engaged in corporate social investment (CSI) initiatives since the 1980s. The Company sees this as a business imperative which is an integral part of its responsibilities as a corporate citizen. To this end, the AECI Group's CSI programmes and donations aim to promote the improvement of the overall quality of life of neighbouring communities in areas where the Company operates.

Through its alignment with the Group's strategy and business objectives, particularly its commitment to improved employment equity and BBBEE performance, the programme is deliberate, focused and progressive, and is guided by a formal policy framework with its main objective being to mutually benefit the Group and its stakeholders, especially its employees.

POLICY

Through its CSI programme, the AECI Group is committed to empowering and uplifting disadvantaged individuals and communities in South Africa.

Specifically, AECI wishes to:

• address inequality in South Africa by making a measurable improvement in the lives and welfare of previously disadvantaged employees, and of the disadvantaged communities in which it operates; and
• enhance the Company's image and reputation as a caring and responsible corporate citizen.

The CSI programme's focus is demonstrated by initiatives, such as those listed below, which were supported by direct investment of some R8 million by AECI and its businesses during the reporting period.

In many instances, the relationship between AECI and its companies on the one hand, and the NGO, project or programme supported on the other, is well established and long-standing. AECI believes that the development of such relationships maximises the long-term benefit of investments to the advantage of all parties.

AECI LIMITED

The company's CSI commitment is demonstrated by the following initiatives:

&Beyond Foundation

Income-generating activities go a long way towards empowering community members by improving their earning potential, thus enabling community members to support their families. Craft markets are one such income-generating activity which is supported by the &Beyond Foundation.

The rural community of Welverdiend, adjacent to the Kruger National Park in Mpumalanga, is still characterised by high levels of unemployment and poverty. Formal employment opportunities are limited and labour migration to urban centres is high, resulting in many split families and de facto women-headed households.

The development of a craft market in this area was seen as an important community-empowering initiative. As such, AECI supported the construction of the Bohlabela Craft Market which was completed in 2009. The physical structure has enabled the crafters of Welverdiend, who are skilled in beadwork, weaving and embroidery, to unite in a permanent venue after 20 years of working from the side of the road; the result has been increased turnover and improved sustainability.

Project Literacy

Support was again given to this non-profit organisation, which runs accredited Adult Basic Education and Training (ABET) programmes. The "Run Home to Read" initiative is a successful project with some outstanding results in preparing young children for school. Notably, in 2009 "Run Home to Read" reached a further 750 families in Gauteng and Limpopo. The impact of the intervention is evident in the confident young participants who are eager to learn and are passionate about reading, story-telling and finding answers to questions that fill their inquisitive growing minds.

The commitment to linking families to their local libraries continued to strengthen. All caregivers and children involved in the project have attended a library orientation session and joined their local libraries. The enrolment of some of the caregivers in ABET classes, as a result of being involved the project, has been an added benefit.

Project Literacy was awarded the Mail & Guardian's "Investing in the Future" award for 2009 in the Non-Profit Organisations category.

Sparrow Schools Educational Trust

In 2009 the Sparrow Schools Educational Trust (SSET) celebrated its 20th anniversary. Its work began in 1989, with weekly academic extra lessons for marginalised children. SSET's service delivery has since evolved to provide comprehensive interventions in the niche area of remedial and special needs education, using a vocational approach. The overriding objective remains to ensure that children and youth break through barriers to learning.

The Trust's success continues to be impressive. Learner achievements in 2009 were not limited to the classroom but also included achievements on the sports field and other extra-curricular activities: the school's choir was invited to sing for former president Nelson Mandela; three learners were awarded merits for entering an art competition, with one learner's work being exhibited and sold; a learner received national colours for taekwondo; all learners on the New Venture Creation learnership programme achieved NQF level 4; and a catering learner was accepted into the prestigious HTA School of Culinary Art, in Johannesburg, to further his studies.

Another highlight was the appointment of a new head of the SSET's Skills Department and the appointment of additional educators for the carpentry and welding workshops. The educators have met the SETA requirements of assessor and moderator training in motor mechanics, carpentry and welding.

Imbali

This NGO trains and equips unemployed persons in various skills such as sewing, garment making and beading so that they can become self-supporting.

In 2009 trained crafters from the disadvantaged community of Kylemore, in the Western Cape, earned about R100 000 from the sale of their products. Even better results are expected in 2010 following Imbali's establishment of a website, which will enhance both marketing and fundraising initiatives.

Forty four individuals who trained at Imbali have since found permanent employment.

Early childhood development (ECD)

The Ntataise Trust operates a network of training facilities for aspiring caregivers. AECI contributed towards the Basic Certificate in Early Childhood Development level 1 training programme that was completed by 52 previously untrained pre-school practitioners in several informal settlements and township areas in the Free State.

Practitioners were equipped with the basic skills necessary to run good quality ECD programmes, including making educational resources and implementing a daily learning programme. The training, which was verified by the relevant SETA in 2009, also emphasised the importance of including parents and caregivers in the pre-school environment.

Food and Trees for Africa

AECI sponsored a tree planting and distribution event held at the Pimville Community Centre in Soweto, Gauteng. The community was invited to collect trees that will add value to their homes. Ten community members were trained to become community-based educators. They assisted in distributing 300 trees, provided the community with environmental and climate change information, and monitored the trees after planting. It is most pleasing that, after six months, it was confirmed that the vast majority of trees were thriving and are contributing to the greening of the area.

Impilo Health in My Hands

This project, which was initiated by the Foundation of the University of KwaZulu-Natal, aims to increase access to appropriate health services by making it easier for people to get health-enabling information and by enhancing communication and collaboration between service providers through the use of mobile phone technology. The Impilo project thus packages health-enabling information and resources and delivers them via a mobile phone interface to any member of the community, 24 hours a day. This not-for-profit initiative is a world first.

Individuals can phone the service, anonymously and at no cost to themselves, for information on HIV/Aids. A directory has been developed to provide an inventory of all HIV/Aids-related services available in each province.

A pilot project, preceding full roll-out in 2010 and 2011, is being run in the Umkhanyakude District municipality, in the far north of KwaZulu-Natal adjacent to Mozambique and Swaziland. This community was identified by the Department of Health as a priority for health interventions since, in this district, a number of key health issues such as high rates of TB, HIV infection and infant mortality are prevalent. Poverty is a daily challenge with over 70% of families surviving on less than R800 per month, and birth registration rates are among the lowest in the country.

AEL

AEL, together with the TISO AEL Development Trust, a trust established by TISO Capital which is a shareholder in AEL, contributed R1 million to social investment in 2009. Main projects were:

Tembisa Schools

A substantial amount was again allocated to the support of eight schools, split equally between primary and high schools. Support concentrated on upgrading the standard of maths and science education, largely under the auspices of the Maths Centre - an NGO specialising in the teaching of maths in schools.

In 2009, the four high schools achieved a total of 156 matric distinctions. One of the schools produced 118 distinctions. This achievement is remarkable for a school in a traditionally disadvantaged area.

The sponsored schools recorded overall improvements of 11%, 12% and 23% in the pass rates for Grades 10, 11 and 12 respectively, which bodes well for both teachers and learners.

CIDA

Students pursuing degrees in Business Administration at CIDA City Campus also received funding from the Trust. Funds were made available for tuition expenses and for an allowance to subsidise travel and living costs.

Some former students have been absorbed into AEL's internship programme whilst others have become permanent company employees.

Internship programme

Seven qualified young people were placed into positions in AEL. The objective of the internship programme is to provide experience, thereby enhancing the employability of such individuals. Feedback from former internees bears testimony to the programme's success in opening up career opportunities and integrating young graduates into the work environment.

Nurturing the Orphans of Aids for Humanity (NOAH)

NOAH in Ivory Park continued to receive funding, primarily for the cost of groceries. Some of the grocery funds allocated were used to buy "e'pap", a pre-cooked cereal made from maize, soya and added nutrients. This highly nutritious meal supplement has brought about a great improvement in the health of children attending the centre.

Additional funds were also contributed towards a building fund. The first phase of building has been completed and three new classrooms are already in use.

Augmenting the initial donation by AEL of a bread oven in 2007, NOAH acquired electrical mixers and this has enabled more bread to be produced to the benefit of the children and the wider community.

Linked to the NOAH project is a vision screening initiative where children were tested so as to detect early problems that could impact on school performance. As a direct consequence of this intervention, 46 received much needed spectacles.

Other initiatives

AEL's Employee Assistance Resources (EAR) function continues to provide counselling and other support services, such as hospital and home visits, to employees who are ill. As a consequence of the difficult economic conditions in the year, a noticeable increase in requests for personal loans and advances on salaries was recorded by EAR.

Exit counselling remains in place for retrenched employees, with career re-skilling being made available through the company's Self Development Fund.

CHEMSERVE

Chemserve invested in community development projects, charitable organisations and educational institutions. Among the main investments were:

Adams Mission College

With the aim of contributing towards the improvement of science education resources in previously disadvantaged schools, a fully equipped laboratory and auditorium were built at Adams Mission College near Umbogintwini, south of Durban.

Educators' qualifications

Chemserve's support was instrumental in building a fully equipped science laboratory at Bokamoso Secondary School, in Tembisa, in 2007/2008. In 2009, Chemserve continued to deliver on its commitment to the school by providing funding to educators seeking to upgrade their physical science educators' qualifications.

Outreach

As in 2008, an outreach programme in Hoedspruit, Limpopo, was funded. The initiative is co-ordinated by Southern Cross School, a nature-based schooling system. The programme includes environmental education, maths, physical science, technology and computer literacy. It is targeted at educators from rural disadvantaged communities in the area.

Bursary scheme

Chemserve has introduced a bursary scheme for employees' dependants to study at tertiary level in a field of their choice.

HEARTLAND

Funds were made available to a number of organisations involved in general education, HIV/Aids education, environmental improvement projects and community development. At Modderfontein, Heartland played a significant role in providing major civil infrastructural changes at the Nobel Primary School.

Over and above this CSI spend, further funds were invested in enterprise development, mainly through the support of newly established small Black enterprises and in subsidising their rentals.

As is the case with the Group as a whole, Heartland's contributions reflect only direct financial support and do not include the often more valuable investment of time, guidance and expertise provided by company personnel.