Socio-economic Impact > Project Impact On Community

The Eastern Cape has the lowest economic activity in the country, with 2006 GDP per capita of ZAR16,383 (compared to Gauteng which contributed ZAR48,636 per capita.

Project Mthombo provides a “once-off”, much needed investment opportunity for this part of the country to balance the uneven economic distribution in SA and ensure sustainable growth. The Eastern Cape is one of the poorest provinces in the country, where 67.3% of the population lives in poverty, with at least 50% unemployment. This reinforces Coega as an ideal location.

It is expected that the Coega refinery will create up to 27 500 temporary jobs during the construction phase of three to four years and another 18 500 when operational owing to direct and indirect effects in the South African economy.

The direct potential impact of the crude refinery on household incomes is expected to be considerable. Additional household incomes will also be generated as employees spend their salaries and wages on consumption of goods and services, property, taxes, etc. throughout the local and regional economy. Low-income households are expected to benefit more during the construction phase, when the demand for unskilled labour would be higher.

CORPORATE SOCIAL INVESTMENT

In word - but especially in deed - PetroSA has built up an impressive record of supporting the transformation of communities. And it has been doing so with a passion and intent that few other businesses can claim to match. Corporate Social Investment (CSI), long an important pillar of the company’s transformation strategy, was strengthened even further with the integration of the CSI function into its 2006/07 corporate business strategy. Previously, the PetroSA Development Trust was responsible for implementing CSI programmes.

To address social needs and implement the government’s transformation objectives, PetroSA has worked hard to strengthen partnerships with various stakeholders, including government departments, employees, municipalities and communities.

And the people whose lives the company has touched, inspired or simply showed empathy with have ranged from its own workers to ambitious learner at ramshackle schools... from old age pensioners in rundown townships to AIDS sufferers... and from starry-eyed young footballers and netball players to members of job creation projects in numerous rural areas.

And it has been innovative in the way it has gone about interacting with, especially, people and communities. For instance, “buy-in” is a word that many companies speak about - but seldom act upon. Not so at PetroSA...

The company has devised an employee volunteer programme that actually works. Indeed, this programme has emerged as a key tool in growing PetroSA’s CSI function. As its name suggests, the volunteer programme encourages employees to spread good news and carry out good deeds within their own communities (as well as in the workplace). It also prompts employees into building relationships, via the PetroSA vehicle, with community organisations. The programme seeks to strengthen PetroSA’s position as a caring and responsible “Corporate Citizen” - and indications are that it has succeeded in doing so.

The primary objectives of the CSI Programme is to have constituent projects that:

• Are aligned with the overarching objectives of the government‘s BBBEE strategy;
• Contribute to stabilising social upliftment and economic development in the country;
• Create sustainable value in the secondary economy;
• Empower disadvantaged communities to become more healthy, secure and self- sufficient; and
• Enable PetroSA to play a highly complementary role in reaching Corporate Citizenship objectives.

In its CSI programme, PetroSA has chosen to focus on four main areas of development:

• Education and Training
• Health
• Community Development
• Environment

CSI carries out the bulk of its programme in four provinces - Limpopo, Western Cape, KwaZulu-Natal, the Eastern Cape and Northern Cape has been recently added.

In addition to ongoing Maths and Science Programmes, PetroSA supports HIV/Aids projects in the provinces mentioned (alongside any ad hoc sponsorship that it offers to organisations in these regions). South Africa still has a range of problems that it needs to overcome - but thanks to PetroSA’s CSI programme some light is beginning to emerge at the end of a number of tunnels.

PROJECT NEWS