Recognising that there is rampant poverty yet huge potential in South Africa’s rural areas, the Old Mutual Rural Economic Development Initiative (REDI) set out to mobilise resources and stimulate economic development in those areas.
REDI works though a network of community ‘champions”. These are community members who identify needs in their communities, initiate action programmes and mobilise fellow community members.
The network of champions relies on volunteerism and mentoring. Champions go on to coach and mentor other aspiring champions. They provide access to specialised information and facilitate capacity-building through training, workshops and financial support. Recruitment and invitation into the network usually follows a period of scrutiny of one to two years.
The judges singled out this unique grassroots development model for its wise use of resources and admirable principles. ‘It is a sustainable model that has had a huge impact and that can be replicated by other corporations,” said the judges. REDI was a finalist in last year’s Investing in the Future Awards.
Day-to-day administration is undertaken through a project office in Johannesburg, where project manager Dave Millard ensures that the network operates cohesively. Key network members are nominated to serve on a national working group, which meets quarterly to manage operational issues, review achievements and plan the way forward.
The initiative was initially developed in 1998 by the Small Business Project, with seed development capital coming from the United Kingdom’s Department for International Development and from the Ford Foundation. Old Mutual Foundation joined in 2000 and in 2001 became the principal funder, committing more than R27-million over three years.
Roddy Sparks, managing director of Old Mutual and chairperson of the foundation, explains why the company decided to get involved: ‘Given that some 49% of South Africans live in rural areas, it is unfortunate that corporate South Africa has not yet paid much attention to investment in rural development.
‘Perhaps this is because companies have tended to go where the potential for business appears to be greatest and, when faced with the reality that the large majority of impoverished households are located in rural areas, the rural populace does not seem to represent a lucrative client base. However, this logic is flawed.”
The REDI champions have themselves raised funds to run and manage their community development projects. Over the past five years, the network has leveraged some R70-million, mainly in the form of infrastructure, equipment and donor funding.
As a result, the REDI network became an independent, self-managed entity in 2002. It has been registered as a section 21 company with its own board of trustees and the name was changed to REDI Development Network (Association Incorporated).
The project extends community development beyond job creation. For example, teacher support and training is undertaken and school buildings are improved. Volunteers help communities to set up food gardens and to deal with the effects of HIV/Aids.
A comprehensive monitoring and evaluation process has been undertaken annually since 2001. This highlights achievements as well as shortfalls and obstacles to progress.
Old Mutual Foundation isolates some important lessons learnt from the REDI network:
l Individual involvement is key to development.
l Sustainable development is possible only when individuals share values and principles and actively mentor others.
l Market-driven enterprise is the only formula for sustainable development. Sustainable jobs can be created only if businesses are viable, profitable and have some potential.
l In order to be successful, the champions themselves have to be supported through mentoring, access to skills development, information, resources and financial support.
l Resources are only as effective as the people using them.
Kate Miszewski was a teacher in Botswana before she became manager of Old Mutual Foundation three years ago. ‘I believe it is important to embrace a holistic and integrated view of development, through genuine and constructive engagement with partners,” she says.
‘Challenge is important. Communities need to be challenged to take on the responsibility of their own development. We help by providing the resources.”
What does REDI have in the pipe-line for the future? ‘Public-private partnerships on large commercial agricultural projects offer exciting opportunities for job creation,” says Millard, ‘particularly given the increasing First World demand for organic and non-genetically modified foods. Many tribal lands are eminently certifiable for organic production.
‘The large number of people in the REDI communities means that the opportunities for social investment extend beyond job creation — to development initiatives in education and training, health, welfare, the environment and arts and culture.”