Chairpersonreport

Chairperson message

I am honoured to share details of our organisation's successes and challenges, and the commitment of the Board, Leadership and all who support and believe in the Cotlands value proposition. In addition to the core roles of approving strategy, governance, and oversight, the Board's key focus remains on maintaining our commitment to delivering value to all our stakeholders, ensuring sustainability, and striving to make an impact on the ECD sector.

The pilot of the CSE project reported on in 2024 was finalised in February 2026. Although the proof of concept delivered is sound, demand for the product in the current market has proven unprofitable. The capabilities built as part of the project were not wasted; they have been integrated into the future offerings of Toy libraries and into making Toys2Rent available through partnerships. Despite the CSE project's suboptimal outcome, it provided valuable opportunities for leadership development and succession planning.

Financially, this year has been exceptionally challenging. With ever-reducing government funding, the negative impact of international funding due to changes in funding strategies in the USA and the ongoing reduction in non-designated funding made funding targets particularly hard to achieve. Robust financial controls, agile decision-making, and effective, efficient project execution enabled Cotlands to remain financially and operationally sound.

There are several key role players in the ECD landscape, including Regulatory bodies, Government institutions, and donors, which impact delivery models, operating models, compliance standards, and funding. A critical activity undertaken by the Board and Management is the annual Strategy review, which takes into consideration the changing environment in which Cotlands operates.

The transition of ECD from the Department of Social Development to the Department of Basic Education, which commenced in 2022, has largely been completed. One of the key outputs from the DBE has been the Bana Pele Shared Blueprint. The Blueprint aims to achieve universal access to quality early learning and aligns funding with compliance to norms and standards, with the level of compliance determining the quantum of funding.

Cotlands is passionate and committed to quality Early Childhood Development, and alignment with the Bana Pele Shared Blueprint is critical to achieving this goal. In addition to access to funding, there are opportunities to provide and contribute to quality training and support for ECD centres, which will impact the overall quality of early learning.

These developments informed Cotlands' decision to strategically pivot. The pivot will position the organisation to be at the forefront of early childhood care and education in South Africa. The pivot includes transitioning to a new service model aligned with the Bana Pele Shared Blueprint, through Early Childhood Care and Education Hubs that integrate learning resources and training, and continuing toy libraries and training capabilities. Projects will remain part of a mechanism through which we will enable communities with bespoke funding.

To enable the execution of the pivot, our CEO, Monica, seamlessly transitioned back into the CEO role, supported by Nozizwe, as Head of Operations. The ease of this transition is a testament to the quality of leadership, the exposure Monica and Nozizwe had in the roles they were seconded into, and their commitment to Cotlands. Monica, the CEO, has also been appointed as the Bana Pele lead action role. This is a clear acknowledgement of the technical expertise that Cotlands can contribute to the journey.

Under their leadership and the Board's guidance, a number of activities were successfully executed in the latter part of 2025. The Mpumalanga ECCE Hub has been largely completed, and work is well underway on the Gauteng ECCE Hub. The availability of dedicated funding for the strategic pivot enabled the organisation to implement these changes efficiently and at pace, without placing undue pressure on operational resources or day-to-day financial commitments.

It is said “change is the only constant”. Cotlands has demonstrated, in its 90 years of existence, that it has not just changed but has done so appropriately to what was needed. I am confident that, despite all the challenges, Cotlands will continue to play a critical role in education.

In conclusion, I would like to acknowledge the passion and commitment of Leadership, the Board and Cotlanders. I would also like to express my gratitude to our investors, partners and donors. Without all of you, we cannot deliver on our mission and honour our commitments.