Latest news with #EnterpriseandSupplierDevelopment
IOL News
3 days ago
- Business
- IOL News
Why corporate giants need to champion SME skills development in South Africa
Many SMEs lack the financial resources to invest in training that would improve the quality of their products or services. By providing financial and resource support, corporates can bridge this gap and enable SMEs to develop the skills needed to meet industry standards. Image: File Though the buzzwords 'job creation' and 'economic growth' often dominate boardroom discussions, it is the humble Small and Medium Enterprises (SMEs) that truly bring these concepts to life. SMEs are the ones taking risks, hiring locally and revitalising our markets. Yet, they are the ones struggling, particularly in accessing the skills they desperately need. The growth potential is clear - SMEs do not simply fill gaps in the market, they create new ones. They innovate and they adapt with a nimbleness that bigger entities lack but this potential is often choked by a lack of resources, especially in upskilling their workforce. It is unrealistic to expect SMEs to compete on a global scale, if they're perpetually battling to stay afloat due to a skills deficit. Corporate self-interest - strengthening the supply chain Many SMEs lack the financial resources to invest in training that would improve the quality of their products or services. By providing financial and resource support, corporates can bridge this gap and enable SMEs to develop the skills needed to meet industry standards. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ To put it bluntly, this is a prime opportunity for corporates to provide real support for SMEs by funding training programmes that enhance their capabilities. The argument for corporates to step in isn't just a matter of social responsibility, it's directly related to self-preservation. Given the sheer scale of interconnected global economies, supply chains are only as strong as their weakest link. By investing in SME skills development through Enterprise and Supplier Development (ESD) initiatives, larger organisations are not just throwing a lifeline; they're strengthening their own position. An SME with a well-trained workforce is a more reliable supplier, a more innovative partner, and a more capable contributor to the wider ecosystem. Strategic investment with skills development as a priorityThrowing money at the problem isn't enough. Too often, ESD funds are misdirected, or worse, squandered, because the recipient lacks the business acumen to manage them effectively. This is where the "skills" part of "skills development" must be brought sharply into focus. SMEs and their workforces require a diverse skill set on top of the basics of management skills, financial literacy, and administrative capabilities. Equipping individuals with these competencies ensures that the right people, possessing the right skills, are in place to maximise the Return on Investment (ROI) from ESD funding. Putting the focus on skills development in the right placeTo achieve this, a dedicated portion of every ESD investment must be explicitly earmarked for comprehensive training. This isn't as complicated as it sounds. To maximise the impact of these initiatives, corporates should partner with accredited training providers, who will bring in the experts to deliver impactful, relevant programmes, tailored to the unique requirements of the SME. Let's not forget the operational burdens that often cripple SMEs - the endless admin, the cash flow struggles, the constant juggling of multiple roles – these are the realities that prevent entrepreneurs from focusing on growth. Corporates can step in to alleviate these burdens by providing resources for administrative support, or by facilitating learnerships and internships where relevant, to give SMEs, the breathing room they need to move beyond survival. Stepping up to champion SME skills developmentIn short, it's about building the human capital that will drive long-term success. By outsourcing training to reputable providers, corporates can ensure that SMEs receive high-quality, relevant skills development that directly contributes to their growth. Such a partner would manage the skills development aspect of the investment from start to finish - covering everything from training materials to compliance reporting, making it almost effortless on the corporate's part to contribute to the growth of SMEs through their supply chain. To get there, however, a paradigm shift needs to happen. Corporate South Africa needs to move from a mindset of charity to a mindset of strategic partnership. This isn't about handouts; it's about investing responsibly in the future of businesses and communities. It's about recognising that when SMEs thrive, South Africa thrives. Daniel Orelowitz is MD at Training Force. Daniel Orelowitz, MD at Training Force. Image: Supplied. BUSINESS REPORT Visit:
IOL News
06-05-2025
- Business
- IOL News
Mashatile backs Transformation Fund to be a game-changer
Deputy President Paul Mashatile. Image: Siyabulela Duda/ GCIS THE launch of the Transformation Fund will help expand spending aimed at supporting African and Black enterprises in townships and rural South Africa led by women, youth, and people with disabilities. This is according to Deputy President Paul Mashatile, who delivered a keynote address at the business breakfast session and launch of the Transformation Fund at the Freedom Park heritage site and museum in Pretoria on Monday. The fund aims to aggregate especially Enterprise and Supplier Development (ESD) funds in support of transformation and the participation of and sustainability of black-owned enterprises in the economy. It is expected that R100 billion will be aggregated over the term of the current administration through a joint effort by the government in partnership with the private sector. The Fund has not gone without opposition, with the DA saying the government cannot create such a fund without first obtaining the explicit approval of Cabinet, especially when it effectively introduces a new tax on the private sector. However, Mashatile described the launch as an important and historic day for South Africa as it marks a key milestone in the country's journey towards economic transformation. 'It will serve as a strategic vehicle for businesses to embrace change, foster innovation, and drive growth. This fund will serve as a catalyst for financial support, guiding organisations through crucial transitions and enabling them to seize new opportunities that arise in the market. As enterprises seek improved access to capital and the need to remain competitive in this dynamic environment, I believe that the Transformation Fund will be invaluable. The proposed Transformation Fund will unleash Enterprise and Supplier Development's (ESD's) potency in driving economic inclusion and participation,' he said. Mashatile assured that the Transformation Fund will be at the centre of government, specifically the Presidency. 'We will work with the Minister of Trade and Industry as well as the key economic cluster Minister to ensure that we meet the set targets, especially in the procurement of goods and services. This will include expanding spending aimed at supporting African and Black enterprises in townships and rural South Africa led by women, youth, and people with disabilities. The Treasury and the Department of Women, Youth, and People with Disabilities have already collaborated to develop such a framework. The focus is to ensure speed of execution and equally implement the Preferential Procurement Policy Framework Act.' Funding will be allocated to various productive sectors of the economy, which includes, among others, services industry, tourism, and agriculture, thereby supporting majority black-owned entities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕
IOL News
05-05-2025
- Business
- IOL News
Mashatile pledges to protect R100 billion transformation fund from corruption
The fund, proposed by Minister of Trade and Industry Parks Tau earlier this year, aims to create a R100 billion pool to support businesses owned by black entrepreneurs and drive inclusive growth across South Africa's economy, with R20 billion set to be allocated annually over the next five years. Deputy President Paul Mashatile has vowed that the government will put stringent measures in place to ensure that the proposed R100 billion transformation fund does not end up in the wrong hands. The proposed fund has faced criticism from several political parties, including the Democratic Alliance and Freedom Front Plus, who argue that it is merely a rebranding of unsuccessful programmes from the past. Tau has maintained that participation in the fund would be voluntary and emphasised that the government would not interfere with companies already succeeding with their own Enterprise and Supplier Development efforts. During a business breakfast in Pretoria on Monday, Mashatile stated that the government is dedicated to fostering a more inclusive economy, highlighting that corruption in both the public and private sectors continues to be a significant barrier. 'We will not achieve an inclusive economy as long as corruption persists, both in the public and private sectors. Corruption hinders the growth of Small and Medium-sized Enterprises (SMEs) by increasing costs, reducing profits, and creating uncertainty," Mashatile said, according to EWN. He further stressed that to promote an inclusive economy, it was crucial to address corruption by strengthening institutions and fostering transparency and accountability. 'To promote an inclusive economy, we must commit to addressing corruption by strengthening our institutions, fostering transparency and accountability, and promoting citizen engagement. This includes developing and implementing robust anti-corruption frameworks, strengthening our criminal justice system, and encouraging public participation and oversight,' he said. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel.
Daily Maverick
02-05-2025
- Business
- Daily Maverick
Standard Bank's Kasi SME pitch challenge goes national as government doubles down on job creation
Opportunities for South African entrepreneurs have never looked brighter. Standard Bank's Kasi SME Pitch Challenge is going national, offering funding and exposure for township businesses across the country, while the Jobs Fund provides support for innovators in green and informal economies. Standard Bank is throwing a lifeline to township entrepreneurs, launching the third Kasi SME Pitch Challenge. With R60,000 up for grabs in provincial prize money and a shot at R500,000 at the national finals, this isn't just another competition – it's a major private-sector push to support job creation and economic growth. For the first time, township businesses from all nine provinces can compete for funding, exposure and the chance to scale their impact. The Kasi SME Pitch Challenge, a centrepiece of the Standard Bank Kasi SME Summit, previously focused on Gauteng. Now, its expansion is set to unlock new growth and job opportunities in township economies across the country. This initiative is part of Standard Bank's broader commitment to empowering township economies, building on its Enterprise and Supplier Development programme that provides tailored support to black-owned businesses. Applications for the Standard Bank's Kasi SME pitch challenge close on Tuesday, 6 May 2025. In each province, 15 entrepreneurs will be shortlisted to pitch to a panel of judges. The top three in each province will win R30,000, R20,000 and R10,000. The top two per province will receive a pitching masterclass and will advance to the national finals, where the stakes rise with a R500,000 prize pool and national exposure for their businesses. 'The Standard Bank Kasi SME Summit is more than an event – it is an essential platform for economic development within South Africa's townships, and its benefits extend far beyond the event itself. By expanding the pitch challenge nationally, Standard Bank deepens its impact on South Africa's township economies, helping even more local businesses navigate typical business challenges, constraints to market access, and build sustainable enterprises,' said Naledzani Mosomane, head of enterprise development for business and commercial banking, Standard Bank South Africa. Real impact Calab Baloyi, founder of Nosso-Sunflower Oil, went from running a garage operation to a thriving business owner after taking fifth spot in the Standard Bank Kasi SME Pitch Challenge, winning a R50,000 cash prize. With the prize money, he paid off the deposit for his oil extraction machine and upgraded his facilities, boosting production capacity from 1.2 tonnes to 7.5 tonnes a month. The competition taught Baloyi valuable skills, including effective storytelling and confident public speaking. His advice to aspiring entrepreneurs? 'Practise your pitch, understand your financials and showcase your unique value proposition.' Government's effort The government is also playing its part – on Wednesday, 30 April, the Jobs Fund announced a new funding round for innovative solutions that address critical employment barriers in South Africa's green and informal economies, with grants starting at R5-million. The Jobs Fund had invited proposals from public, private and non-profit intermediaries addressing barriers such as technology, infrastructure, regulation, market access and working conditions. The timing couldn't be more urgent. Despite a modest dip in South Africa's overall unemployment rate to 31.9%, youth unemployment remains alarmingly high at 44.6%, with women and young people bearing the brunt of the jobs crisis. 'This initiative comes at a time when unemployment, especially among youth and women, remains a pressing challenge. The fund seeks to support creative, scalable interventions that will contribute to sustainable job creation and stimulate inclusive economic growth in high labour absorptive sectors,' the Jobs Fund said in a statement issued by the National Treasury. First established in 2011, the Jobs Fund emerged from President Zuma's State of the Nation Address in February of that year, before being officially launched by the Finance Minister in June. With an initial allocation of R9-billion, the fund was designed to drive innovative approaches to job creation through co-financing projects with public, private and non-governmental organisations. The previous funding rounds have disbursed R7.4-billion, creating 210,719 permanent jobs and 114,534 short-term jobs and internships, and supporting more than 63,000 SMEs and 16,000 emerging farmers. The new round targets projects in renewable energy, sustainable agriculture, green mobility, waste and water management, and informal sectors such as street vending and small-scale manufacturing. Applications close on 5 June 2025 at 3pm. What this means for you The simultaneous push from Standard Bank and the Jobs Fund means more than just funding – it's a coordinated effort to unlock jobs, skills and economic growth in the sectors and communities where they are needed most. Township entrepreneurs now have a national platform to access capital, mentorship and exposure, while innovators in the green and informal economies can tap into substantial government support. These initiatives are designed to help businesses grow, employ more people and contribute to inclusive economic development. Eligibility and requirements Township entrepreneurs eager to take part in the 2025 Standard Bank Kasi SME Pitch Challenge must meet these criteria: Eligibility: Black South African citizens only; Registration: Must be registered with the Companies and Intellectual Property Commission (CIPC) or operate as sole proprietors; Ownership: Businesses must be at least 51% Black-owned and hold valid B-BBEE accreditation; Revenue: Annual turnover should range between R0 and R5-million; Operational History: At least 12 months in business, with a business profile and proof of ID; and Exclusions: Non-profits, NGOs, co-operatives, joint ventures, and Standard Bank employees are not eligible. The requirements for the government Jobs Fund are: Those wishing to apply can visit the Jobs Fund website at [email protected]. Both opportunities offer practical support and real pathways to growth for South Africa's entrepreneurs and job creators. DM
Daily Maverick
23-04-2025
- Business
- Daily Maverick
SMME focus: Banks' agripreneur programmes boost jobs from seed to shelf
Nedbank and Standard Bank's agripreneur programmes are transforming South Africa's agriculture by equipping emerging farmers with skills, market access, and land partnerships. Through hands-on training and connections to major retailers, the programmes are addressing funding challenges, creating jobs, and boosting food security in communities. From the prominent shelves of major retailers to the heart of South Africa's food security, the rise of small-scale farmers and agri- small, medium, and micro enterprises (SMMEs) represents one of the country's most urgent economic opportunities and systemic challenges. Where do these businesses originate, how do they take their first steps, and what support and skills propel them forward? The unyielding reality Despite a slight improvement in South Africa's official unemployment rate — which dropped by 0.2 percentage points to 31.9% in the fourth quarter of 2024, with 132,000 more people finding work and total employment reaching 17.1 million — the broader reality remains stark; eight million people are still jobless. Notably, employment in agriculture declined by 11,000 jobs during this period. Banking growth Against this backdrop, Nedbank has invested R169-million over the past seven years in its Enterprise and Supplier Development (ESD) programme, empowering more than 5,400 businesses, creating more than 1,000 jobs, and unlocking R80-million in new business opportunities through strategic funding, mentorship and public sector partnerships. In agriculture, the bank's support is especially impactful — the Green Agripreneur initiative, backed by R6.5-million in partnership with African Greeneurs, has helped 20 emerging farmers gain training, business support, and market access. This initiative adopts a comprehensive 360° approach, combining climate-smart agriculture with retail strategies. Participating farmers are now supplying major retailers such as Pick n Pay while mastering skills such as: How to cultivate their own vegetables effectively. Understanding their target markets and developing skills to promote themselves. Selling their produce to established retail outlets, enabling them to earn an income while honing essential entrepreneurial and farming skills. Meanwhile, Standard Bank's Agribusiness Transformation Programme, which was launched in 2019, aims to empower small-scale and emerging black farmers in South Africa, primarily in the Free State and Northern Cape. Through collaboration with the Department of Agriculture and Rural Development, as well as the University of the Free State, the programme has trained 223 farmers across six cohorts, focusing on sustainable, climate-smart practices, improving access to funding, expanding market opportunities, and developing agri-processing ventures. Brendan Jacobs, the head of agribusiness at Standard Bank, said that the programme's success was attributed to its practical approach, ongoing mentorship support, and the creation of a collaborative learning community among farmers. For some graduates of the Agribusiness Transformation Programme, like Paulina Siwawi, the impact is personal and profound. A former teacher who left the classroom to tackle food security in her community, Siwawi credited the intensive training and support from Standard Bank and the University of the Free State for the growth of her poultry business. Her ambitions now stretch well beyond subsistence — she plans to grow her farm to the point where she has bred 10,000 chickens and has established herself as a commercial farmer with a sustainable and profitable enterprise. Funding drought Even as banks and new initiatives step up to support South Africa's emerging farmers, access to funding remains the single biggest obstacle to growth in the sector. 'The challenge, mostly with the new startups… is funding, because when you start a business, you need capital. Without capital it's a challenge due to (costs such as) the input needed, labour costs, and transportation,' said Kobang Maluleka, CEO of African Greeneurs. Human faces of the harvest After completing the 12-month Nedbank Green Agripreneur Programme in August last year, the emerging farmers — many of whom began with little agricultural experience, were immediately helped to establish their own businesses, using the programme's infrastructure as a launchpad. This support enabled them to create jobs, generate income, and contribute to local economic growth in their communities. Daily Maverick spoke to several of these new agripreneurs, who have built viable enterprises and earned income during the programme. Yet, despite their achievements, they echoed Maluleka's concerns about the persistent challenge of securing funding to further scale their operations. Bathabile Masemola and Mfundo Madondo of Green Leafy Growers achieved notable success on their green pepper harvest from January to March this year, generating R18,000 in income collectively and creating 10 jobs. They highlighted a common challenge faced by emerging farmers: 'We have been struggling to get funding, but at least we managed to get on the ground,' Masemola said. The programme has also empowered Nothando Mlaudzi and Sibongile Moloi of MM Greenfields, who earned R68,000 collectively and created 13 jobs over three months (January to March), also through green pepper harvesting. 'We have created employment for 13 people, and in two months, we made sales up to R50,700 and we are supplying big giants like Pick n Pay and looking at getting more market and more clients,' Moloi said. Madikwe Molekoa, the owner of Phutipoyane, generated an impressive income of R250,000 and created 18 jobs through harvesting different crops for more than five months (November to March). Exit strategy Building on these success stories, Maluleka highlighted the programme's unique exit strategy, where, upon completing the programme, participants immediately take over and operate their own businesses using the programme's infrastructure. This approach focuses on developing entrepreneurs rather than employees, fostering a sustainable cycle of income generation, creating employment opportunities for those with entrepreneurial potential and alternative paths for those who prefer employment. From training to thriving The programme begins with a three-month 'activate phase' combining classroom theory and field training, followed by a nine-month 'accelerate phase' in which farmers apply their knowledge throughout a full growing season. This structure ensures that participants gain the real-world experience necessary to run successful agricultural enterprises independently. Beyond training, the Green Agripreneur Programme positions participants for long-term success by facilitating land acquisition and connecting them with funders, suppliers, coaches, and mentors. Nedbank's support spans the entire agribusiness value chain, ensuring that farmers meet rigorous standards in production, packaging, and market readiness. Farming land acquisition 'We connect the agripreneurs with various landowners,' Maluleka said. This includes traditional landowners, municipalities, commercial farmers, and government entities, as the programme itself does not own land. For instance, in KwaMhlanga, Mpumalanga, the team successfully facilitated access to 750 hectares of land through the Ndebele Kingdom, where they negotiated lease agreements, ensuring that farmers could use the land productively — transforming it into arable farmland and creating opportunities for sustainable farming. One of their roles is to act as a bridge connecting farmers to their extensive ecosystem of partners. This includes linking them with funding sources, landowners, suppliers of farming inputs, infrastructure providers, and market channels. What this means for you Your grocery choices have power. Every rand spent on these small enterprises, by buying their chemical-free produce, delivers a triple benefit: More variety: Local stores now stock regenerative, climate-smart options that meet supermarket standards, giving you greater choice. Healthier choices: Enjoy veggies that are good for you and the planet. Local impact: By buying from them, you're investing in a sustainable supply chain that drives economic growth and community development. Participation requirements The Green Agripreneur Programme is not open to everyone and is offered selectively based on specific geographic focus areas. The programme is only advertised when sponsorship is secured, allowing Nedbank to target particular regions where they want to make the most impact. For example, in one cycle, the programme focused exclusively on 10 participants from support is confirmed- often through Enterprise and Supplier Development (ESD) initiatives or Corporate Social Investment (CSI) partners- Nedbank collaborates with sponsors to identify the target programme then engages directly with the local community, advertising opportunities within that region and selecting candidates accordingly. The Standard Bank programme leverages media channels and departmental outreach to advertise opportunities and identify candidates. Farmers are systematically identified and referred by the Free State's Department of Agriculture and Rural Development as well as the University of the Free State, targeting eligible black commercial farmers and black-owned agribusinesses primarily in the Free State and Northern Cape. DM
