Sanlam embraces intersectionality to create equitable, prosperous future

SA stands at an intriguing intersection of global goals and national aspirations, with targets set by the government’s National Development Plan 2030, the AU’s Agenda 2063 and the UN's Sustainable Development Goals (SDGs).

In the discourse surrounding urban development, it's imperative to recognise the intricate tapestry of identities and experiences that form the fabric of society. This alignment underscores the urgency and interconnectedness of sustainable urbanisation efforts in achieving Sanlam's goals and environmental, social and governance targets.

A compelling hypothesis has been put forward that suggests the need to develop bottom-up approaches to building sustainable cities (SDG 11). These approaches would enhance the standard of living and wellbeing of many (Africa Agenda 2063 goal 1) — a standard of living that is defined and guaranteed under the constitution.

At the core of this vision lies the concept of people-driven cities, keeping in mind that urban spaces are designed with the goal of accommodating and empowering all facets of communal living and ultimately intersecting with rural spaces.

Urban landscapes are not merely infrastructural entities, but are dynamic ecosystems shaped by people’s diverse needs and aspirations. 

Sanlam Investments Property Development Fund aims to invest in affordable social infrastructure: rural and township retail malls, housing, schools, student accommodation and healthcare facilities.

Sanlam is partnering with investors to develop a commercial opportunity which has an investible opportunity set for more than R2.5-trillion in impact-driven property assets. These will enable SA's hard-working middle-income working class to access good quality, affordable physical-social infrastructure to help build a more sustainable SA.

The fund finances and develops “bricks-and-mortar” social infrastructure — people-driven cities which benefit the communities in which they are developed. Why? SA has the highest rate of income inequality in the world.

As a result, many of SA's working class — nurses, police officers and teachers — have stable incomes of between R5,750 and R36,000 a month but do not qualify for either government support or traditional funding from banks. Most of the government’s efforts are centred on helping the very poor.

Currently, some 23% to 30% of the country’s population fall within the “missing middle” income group. This same segment constitutes 65% of individual taxpayers, regarded as the backbone of our economy. They require physical social infrastructure of sufficient quality, designed to meet their affordability and their needs. Through the Sanlam Investments Property Impact Fund, the aim is to address some of these challenges.

Addressing the missing middle: Affordable housing solutions

Central to the ethos of people-driven cities is the principle of intersectionality, a concept pioneered by civil rights advocate Kimberlé Crenshaw. She argues that the individual characteristics of a marginalised person overlap; their unique set of challenges cannot be understood merely by looking at them in conventional ways. 

In the world of investment, Sanlam has seen first-hand the transformative impact that diverse perspectives can bring. Intersectionality is a way of understanding how different aspects of a person's identity — such as race, gender, class and sexuality, overlap and interact to create unique experiences and a breeding ground for innovation.   

Recognising the multifaceted identity of the missing middle is pivotal to crafting inclusive housing solutions. By prioritising affordability, accessibility and quality in housing initiatives, Sanlam acknowledges the diverse needs and aspirations of this demographic.

Finding overlooked opportunities: A unique perspective on fund management

In managing the Property Impact Fund, Sanlam doesn't just look at commercial returns, it considers sustainability and social impact. For example, the township economy is made up of individuals who have left rural areas to move closer to economic activity and people who are used to living in an urban area but cannot afford formal, urban housing. 

Townships represent areas where resilience coexists with economic vulnerability and where despondence lives side-by-side with human creativity.

By virtue of the intersection between urban and rural living, townships have untapped potential for innovation, growth and economic development. In creating retail spaces that can accommodate the needs of the unique township identity, a platform for communal savings schemes is created, such as stokvels, to invest in a local enterprise.

The recognition of the intersectionality of the township identity is already occurring. Residents can access their TymeBank accounts in 172,000 spaza shops. Formalised back-room rentals in townships can develop property management skills and create wealth. 

Embracing intersectionality for sustainable development

By embracing intersectionality, particularly in the financial sector, Sanlam can co-create SA’s version of ethno-finance. This approach integrates cultural and financial insights to fund and unlock opportunities inherent in shared experiences, benefiting from diverse perspectives, including those of women. 

At Sanlam Investments, the investment philosophy is centred on people and community. As financial services have traditionally had a western view, the need to create products that reflect our environment and community values exists. When we do that, the returns will follow, as will financial inclusion and empowerment.

By embracing intersectionality and focusing on sustainable, people-driven solutions, Sanlam can create a more equitable and prosperous future for SA. This is the legacy we can build as we step confidently into the future.

Click here to download the 2024 Sanlam ESG Barometer report.

• About the author: Manka Sebastian is a Sanlam Investments portfolio manager.

This article was sponsored by Sanlam.