Tshikululu’s 25-year journey
There’s a need for a genuine and measurable impact on the lives of those directly affected by social initiatives
In the ever-evolving landscape of social investment, the emphasis on impact measurement, management and reporting has grown significantly. Tshikululu Social Investments, a prominent South African social investment fund manager and adviser, has played a pivotal role in shaping this landscape over the past 25 years. Their commitment lies in ensuring that funds invested in communities result in positive and meaningful outcomes.
According to Tracey Henry, CEO of Tshikululu since 2008, significant changes have occurred in the sector’s professionalism and the requisite skills for effective social investment fund management. The increasing complexity, stringent governance frameworks, and emerging factors such as ESG considerations have driven this transformation. Henry emphasises the current focus on impact measurement and management to apply a sustainability lens to all investments.
“Sustainability comes before absolutely everything,” Henry asserts. For Tshikululu and others in the social investment space, sustainability is at the core of social impact, guided by development principles, a clear vision of intended outcomes, and continuous monitoring, evaluation and impact reporting.
Decision-making regarding where to invest, for what duration, and the funding principles guiding these decisions varies among funders. While long-term investments are increasingly common, short-term interventions remain crucial for immediate needs, as exemplified by the rapid response during the Covid-19 pandemic. However, for areas such as education, environment, job creation and livelihoods, a longer-term perspective is necessary for building thriving communities, adding complexity to social investment.
Henry notes the diversity in strategies and developmental approaches among social investors. Whether supporting a local initiative or participating in a national effort alongside government departments, each approach contributes to supporting thriving communities.
She underscores the paramount importance of sustainability and measurable impact, and stresses the need for transparency to assess onthe-ground realities. “The focus should always be about impact, and the voice of communities in shaping what success looks like is important.”
Partnerships and collaboration for impact
Tshikululu encourages building partnerships that leverage financial and other resources to scale social impact, a principle challenging to achieve but crucial for success. Henry reflects on the collaborative efforts made during the Covid-19 pandemic when corporates, civil society and social investors united, transcending sector boundaries for a common purpose.
As the country faces ongoing challenges such as youth unemployment, education issues, and gender-based violence, Henry advocates for continued collaboration. “Our country is facing numerous crises, and we need to pull together,” she says.
Grassroots impact: Beyond the glossy pages
Despite greater transparency in reporting social impact to stakeholders, the article raises a crucial question: What is happening at the impact level within communities? How do initiatives translate to individuals such as the child in the classroom, the girl facing challenges at home, or the youngster with dreams about their career?
These questions prompt a call for authentic reporting beyond the glossy pages, emphasising the need for a genuine and measurable impact on the lives of those directly affected by social initiatives.