top of page

Recording of Community Engagement and Effective Socio-Economic Development - Loshnee Naidoo

South Africa (SA) is a developing country with a population of 55.7 million, an unemployment rate of 34.4%, a poverty rate of 55.5% and a Gini index (a measure of income inequality) of 63 (100 = maximum inequality). The SA Government views socio-economic development (SED) as a key driver to address these dire social imbalances.
As a result, SED is a key component of government initiatives. Communities often see it as a panacea to poverty and addressing immediate needs, including housing, electricity, water, sanitation, healthcare and employment.
The private sector’s interest in SED is evidenced at numerous levels. Because companies are compelled to comply with the Broad-Based Black Economic Empowerment (BBBEE) programme, which attempts to redress imbalances created under apartheid, companies that empower more Black people (e.g., through more SED spending) are rated higher on the BBBEE scorecard. This in turn gives them competitive advantages, especially in Government procurement. Companies can also benefit by offering specific training to communities, through SED programmes, ensuring they have access to the skilled workers they require. Developing local business to participate in the value chain reduces a company’s cost of business. Finally, fostering a mutually beneficial relationship with the community is valuable for managing labour negotiations, unrest and recessions.

Want to read more?

Subscribe to aofpd.org to keep reading this exclusive post.

bottom of page