Having gone to school in Cape Town, I was shocked that my 10-year high school reunion would be hosted in London. The reality is that most of the alumni are now living and working abroad in search of greener pastures. The consequences of this “brain drain” left me feeling disheartened. Add to this the fact that we are constantly bogged down with bad news about corruption, crime and job security as well as the dire state of Eskom and other SOEs. A recent survey conducted by an independent research organisation, Our World in Data, found South Africans to be the most negative people in the world with regard to the outlook on global poverty. This suggests that we generally think more negatively than we should about the times we are living in. But can we really be blamed for being so pessimistic when faced with our present reality?
A recent experience gave me a moment to step out of this defeatist bubble and gain perspective. While South Africa has its issues, people require perspective to see things objectively. On 7 August, I had the opportunity to attend the second annual Execs Back to School Day. This initiative is driven by Symphonia for South Africa, powered by Sphere Holdings. It is based on New York City’s PENCIL Group’s ‘Principal for a Day’ campaign. This year, 40 business leaders from top South African companies immersed themselves into the daily realities faced in the South African education system by swapping their boardrooms for a day in government run schools. I spent the morning at Sedibeng Primary School which is based in the heart of Tembisa. Tembisa (an Nguni word meaning “Promise” or “Hope”) is the second largest township in Gauteng. It was established in 1957 when black people were resettled from Alexandra and other areas. As I drove away from the shiny buildings and skyscrapers of Sandton towards Sedibeng Primary School I was unsure of what to expect but was pleasantly surprised when I suddenly found myself surrounded by colour, life, and vitality. Tembisa is a vibrant community and on almost every street corner you can find someone making ends meet. Informal businesses are scattered all over from local kiosks selling snacks and airtime, to pop-up barbershops, and instead of the streets being the roadways to destinations, they are the destinations where people meet, eat and play.
When I arrived at the school I was welcomed with open arms and unforgettable smiles! I spent time with the principal, Lineo Kolobe who is one of the most determined and admirable people I have ever met. She was exceptionally well prepared and took me through a detailed and comprehensive PowerPoint presentation of the school and its background before taking me around the grounds. The school was founded in 1959 and currently has 868 learners and 42 members of staff, of which 23 are teachers. When Lineo was appointed as principal in 2016 the school was in a horrendous state - morale was low and the teachers had lost their professional ethos because the climate at the school was neither conducive to teaching nor to learning. Children were undisciplined, absenteeism was high, pass rates were poor, parental involvement was almost non-existent, and the school grounds had not been maintained. She took it upon herself to restore, reconstruct and take the lead in reforming this dysfunctional school community into one with a culture of learning and teaching that embraces the values of ‘Ubuntu’ (often translated as "I am because we are”). She implemented a turnaround strategy which saw the school undergo a massive transformation.
Her determination, resilience and hard work transformed Sedibeng to an extremely well-kept school. There is not a scrap of litter to be found on the grounds, the staff are passionate and engaged and the students are well mannered and respectful. Pass rates and absenteeism have improved drastically and most parents are now involved in the school. Sedibeng now provides the children with two meals a day which is clearly important as Lineo remarked, “Most of the parents are on social grants. For most of the children these are the only meals they receive”. My experience, although brief, gave me the opportunity to truly appreciate the all-encompassing role of a principal. As she walked me around the school, Lineo went from an employer to a building manager, from a counsellor to inspirational leader, all in the space of a few hours. As a leader and the key figure in the school, the principals' discipline and self-discipline is crucial.
Execs Back to School was a mind-shifting experience for me and I walked away with two key lessons. Firstly, it reiterated the importance of strong leadership and the impact that it can have. As asset managers, we see this being played out time and time again in the companies in which we invest - often the best positions in our portfolios are in businesses with strong leaders who are flexible, willing to put in the hard work and able to empower their staff. Perhaps the more important lesson is which is also the “P” word referred to in the title of this article. It is the Power of Positivity. I went to Sedibeng assuming that I would be sharing insights with the staff and students but instead I learnt from them. Despite the hardships they face with many of the children coming from violent home environments, often involving neglect and substance abuse, they have so much hope. When I asked them “what do you want to be when you grow up?” I was reminded of the timeless altruism of children, with most of them hoping to be doctors, firefighters, veterinarians, scientists and police officers. They want to dedicate their lives to the common good. They desire to make something of themselves and uplift their communities despite the hardships they have endured and it reminded me that there is untold strength in a positive mind. I don’t mean being positive and ignoring the negative, but rather being positive despite the negative. It takes guts to be positive, and this is also the case as an investor in South Africa. To remain positive, staying the course and trusting in the philosophy and conviction of your asset manager can result in a profoundly rewarding outcome.