Businesses urged to invest in restoring South African cities — Daily Maverick
In Cape Town, South Africa, participants in The Gathering conference said businesses should view helping troubled cities not as charity, but as an investment in their own future markets. Daily Maverick reported on the discussion on September 11.
Chancellor of the University of the Free State Bonang Mohale stressed that companies cannot remain islands of prosperity amid poverty and the decline of municipalities. According to him, support for communities and cities should not be limited to corporate social investment programmes, as it concerns shaping future demand for goods and services.
Municipal problems and the role of business
Mohale noted that the failure of state institutions is already creating opportunities for the private sector. As examples, he cited problems at the South African Post Office, which led to the closure of some branches, as well as the population’s growing reliance on private healthcare through medical insurance.
Nelson Mandela Bay Business Chamber CEO Denise van Geysten said local companies had begun independently contributing to resolving problems that affect both their operations and the community. According to her, businesses provide more than half of the municipality’s revenue from taxes, levies and payments for services.
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Nelson Mandela Bay experience
Van Geysten said that about two to three years ago, engineers from companies including Volkswagen and Aspen Pharmacare were involved in assessing problems in the city’s sewerage system. They analysed the condition of the system, assisted municipal engineers and identified priorities for intervention. According to her, the system’s availability increased to about 80%, although this figure later declined again.
The Business Chamber also holds meetings with all political forces represented on the city council. Van Geysten linked political instability to instability in municipal governance and the economy. She added that 19 city managers have changed in Nelson Mandela Bay since 2020.
SA Harvest head Ozzy Nel said companies need to choose reliable partners, rely on data and develop solutions that can be scaled. He also stressed that such initiatives should be part of corporate culture rather than depend solely on the position of a company’s leader.
