Correction: information on CSI expenditure in South Africa
THE WORKPLACE Report that appeared in The Star on February 19 carried an article on CSI educational projects. It read as follows:
Local training company Sangari SA reckons that about R4 billion is wasted annually in South Africa on CSI educational projects that fail. “We looked at two major CSI investment organisations, Tshikululu who alone manage R2 billion and Trialogue easily another R2bn. If one considers that all SA businesses need to invest 1 percent of their nett profit toward their BEE ratings, this represents a conservative R16bn. The failure figure is what we have seen in the field and based on our 10-year experience in the education industry,” says Bez Sangari, MD of Sangari SA.
Unfortunately, there is a factual error – Trialogue does not manage R2bn in CSI funds. The company is a research and advisory firm only and doesn’t offer fund management services.
“Trialogue has been conducting research into the sector for nearly two decades, and we share this in our Trialogue CSI Handbook. Our primary and secondary research suggests that in 2013/14 companies spent R8.2bn on CSI, with just under half (49 percent) of budgets, on average, being directed to education,” says Michelle Matthews of Trialogue.
“We recommend that NPOs get a copy of our Trialogue CSI handbook which has detailed information on what the large South African companies are doing with their CSI expenditure, as well as contact details for many of the companies. The most recent edition is available through our website,
Bez Sangari confirms a gremlin crept in: “My apologies for the error. The information quoted came from the Tshikululu Social Investment Report to Society 2013 which reads: Scale Tshikululu Social Investments NPC employed 75 staff members at the close of 2013, is operational in all provinces of South Africa, and on behalf of our clients in 2013 managed grants totalling R348m to 754 development partners. The company had R2.1bn of funds under advisement at the end of 2013.”