Phakamani (rise-up) Foundation was established on the premise that extreme poverty in developing countries can be largely eliminated. Entrenched, systemic poverty is not a creation of the poor themselves but a result of numerous factors outside of their control. Issues like proximity to markets, terrain, climate, lack of natural resources, government policies, cultural factors, training, lack of access to capital, and so forth are highly relevant to the poor and, if not addressed, will keep poor people poor for generations to come. It is not a matter of there being sufficient global wealth to address the problem. The primary issue is one of will – the collective will to do the right thing.
The truth is that it is usually not a lack of skills or ideas that keeps poor people poor – but a lack of access to capital and basic business training that even better-off entrepreneurs need in order to put their ideas into action. Jeffrey Sachs in his book The End of Poverty maintains that “when countries get their foot on the ladder of development, they are generally able to continue the upward climb” The same principle applies to individuals: without assistance, the poor will never be able to climb onto the first rung.
In the South African context, two economies dominate the financial landscape. One is very much a ‘first world’ economy comparable to many OECD countries and the envy of many more. The other economy mirrors the poorest 20% of all countries in the world. Data from FinScope suggests that 32% of South Africa’s adult population does not have a bank account and is thus completely excluded from the benefits and potential of the formal business environment. The Bankers Association of South Africa estimates that R12bn remains unbanked. About 42% of the population exists on less than US$2 per day. More than 27% were officially unemployed in 2011, with many more underemployed. In rural areas, the unemployment figures are much higher. It is in this section of society that Phakamani Foundation operates and is making a difference every day.
