Traditional as well as progressive; dependant on government grants but self-sufficient; crippled by unemployment yet title-deed holders of the world’s largest platinum deposits; simultaneously autocratic and democratic. This is how Kgosi (King) Leruo Molotlegi introduces the Royal Bafokeng Nation, drawing on these contradictions in conventional ideology to illustrate the cultural richness of the community.
The nation is fiercely rooted in customary values that have been carefully passed down through the generations. Nevertheless its sharp focus on a future point does appear to support the adoption of unconventional strategies.
“As leaders for life, we are, by definition, concerned with the next generation, rather than the next election. We view the policy horizon in terms of 100-year cycles, not five- or ten-year periods. We see ourselves as accountable not only to our constituents, but also to our constituents’ grandchildren. And since a career change or even retirement is not on the cards for most of us, we tend to be quite conservative when it comes to using our constituents’ resources — natural, financial and otherwise,” Kgosi Leruo recently told the British Houses of Parliament.
Promoting change Similar to his great-grandfather Kgosi Khama, Kgosi Leruo is constantly seeking solutions that will deliver sustainable peace and prosperity to his people. For Kgosi Khama in 1895 the solution came by way of Queen Victoria who supported the nation’s land ownership, which prevented Cecil John Rhodes from annexing the land for his growing empire.
Since then, the kingdom has faced many political and legal challenges to its ownership of the 1 200km2 of land. Although unsuccessful in acquiring the title deed, the various governments in power over this period often embarked on strategies to isolate the Bafokeng people, forcing leaders into exile and denying the community access to essential services and infrastructure. Many government players colluded with mining houses to facilitate the exploitation of the region’s rich platinum deposits.
By the 1994 fall of South Africa’s apartheid government, the region was littered with the scars of chronic underinvestment. Nevertheless it took another five years to resolve a dispute with Impala Platinum. This finally freed the Bafokeng leadership to start investing their mineral royalties in badly needed infrastructure and facilities. At the same time the nation’s objectives were being discussed at senior council meetings.
The council was called to fi nd a solution to the immediate need for the roll-out of basic infrastructure, while guiding the nation away from its 50% unemployment rate to independence at both national and individual levels. Additionally, the council had to consider that its mineral reserves would probably only last another 35 to 40 years, which would leave the kingdom without funding for its community investments.
An ambitious development agenda, named Vision 2020, resulted from the discussions and was proclaimed by the former Kgosi, Mollwane Molotlegi. This challenged the Bafokeng people to reduce their dependence on diminishing mineral assets and government grants by creating “diversified opportunities to become economically selfsuffi cient and proactive participants in local and extended economies”.
All for one
Through Vision 2020 the nation acknowledged that the goal would only be achieved if the development of the Royal Bafokeng Nation’s communal assets and human capital was maximised to empower the individual community members. In August 2006, “The Masterplan” — a detailed strategy document covering the next 35 years — was launched as the path that would deliver Vision 2020.
“In concrete terms, the Masterplan envisages that by 2035, the Royal Bafokeng Nation will be able to off er a good standard of living to its citizens, provide superior education to its children, provide job opportunities in a flourishing local economy and regularly host stimulating cultural and sporting events of global stature,” the Kingdom said.
By the end of 2006, Royal Bafokeng Holdings (RBH) had been established. With the Royal Bafokeng Nation Development Trust as its only shareholder, RBH is tasked with managing and developing the community’s commercial assets in order to maximise returns. This income is used to deliver sustainable benefi ts to the community.
RBH adopted a long-term value investment view, aligned to its Vision 2020 responsibilities, which seeks to diversify its investment portfolio, thereby lessening its reliance on platinum as a source of wealth. To this end, RBH’s commercial investment portfolio currently comprises interests in the services, manufacturing, financial and telecommunications sectors, in addition to its holdings in the mining industry. RBH’s asset portfolio is estimated to be valued at around R35-billion.
New investments
The latest addition to the portfolio is this week’s R2.5-billion acquisition of 5% interest in Rand Merchant Bank Holdings (RMBH). This investment forms part of RMBH’s restructuring, a key feature of which is the separation of RMBH’s banking and insurance interests. In terms of the RBH investment, RBH will hold 5% of the banking component, RMBH, and 4.9% of the insurance component, to be known as Rand Merchant Insurance Holdings Limited (RMI).
RBH chief executive Niall Carroll said: “This investment in RMBH enables us to diversify and enhance our existing investment portfolio through significant exposure to a leading financial services group, and to work with like-minded people whose values, behaviour and investment philosophies we admire and respect.” Although RBH does not seek to manage its investee operations, the company is an active and participative shareholder, appointing executives to participate in strategy and governance issues and sit on the boards of the investee companies.
The focused investment practices of RBH has meant the Royal Bafokeng Nation has undertaken and overseen infrastructural development valued at more than R2-billion through its various corporate agencies. These projects include roads, water reticulation, sanitation, electricity, street lights and the formalisation of informal settlements. Some 49 schools have been built, as well as a sports stadium, municipal buildings and the Bafokeng Plaza shopping mall.
Progress is undoubtedly being made; nevertheless, Kgosi Leruo maintains his look-out for new or additional solutions that could one day deliver sustainable peace and prosperity to his people. “The heart of the empowerment challenge is enhancing human dignity within a relatively poor rural community through long-term socioeconomic development.”