Committed to Empowering South Africa’s Technology Entrepreneurs
At Microsoft South Africa, we’re committed to fostering innovation and growth in the tech sector through our Emerging Partner Programme (EPP), which equips technology SMMEs with essential resources, skills, and networks to succeed in today’s fast-evolving digital landscape. With hands-on mentorship, targeted funding, and advanced training in areas like AI and cloud computing, our EPP enables businesses to expand operations, reach new markets, and drive meaningful innovation. Whether you’re a founder or a leader in the tech space, our programme is designed to fuel your journey toward sustainable impact.
Turn your vision into reality. Join Microsoft’s Emerging Partner Programme by visiting www.microsoft.com/en-za/emergingpartnerprogramme.
Business Day Enterprise Supplier Development Editors note in partnership with Microsoft
Let’s give all our citizens a fighting chance Kabelo Khumalo Dear reader Business Day and its sponsors are proud to present this edition of the enterprise and supplier development (ESD) magazine. In this publication, I see an embodiment of Business Day’s commitment to see SA and her young people prosper, to have and create jobs. This commitment is extended by those corporates who have the wisdom and vision to recognise that the sustainability of our fledgling democracy is dependent on creating much-needed jobs in our march to build a country where citizens enjoy the same opportunities and the small men are given a fighting chance. As former president Thabo Mbeki eloquently put it: “SA is alive with possibilities.” One possibility which the country is yet to fulfil is to unlock the potential of small, micro and medium enterprises (SMMEs). This largely explains the unemployment crisis Africa’s most industrialised economy is sitting with, making it the most unequal society in the world. This is unacceptable. We can do better, and our country and young people deserve better. As you would read in this edition, the sentiment that prevails is one that ESD is still largely seen as a tick-box exercise. There is a lot stake for large companies to not weave ESD into their corporate culture. The statistics about the performance of SMMEs in SA, particularly in their nascent years, are alarming. More than 70% of SMMEs in SA fold within the first 5—7 years of inception. The factors that contribute are broad and include lack of appropriate technology, inadequate access to finance, labour laws and low levels of technical and entrepreneurial skills. This is where corporations can assist in getting SMMEs in their supply chain and scale up their businesses. This is because when small businesses do well, society and the economy do well. Indeed, the adage “to Kabelo Khumalo whom much is given, much is required”
rings true when it comes to corporates giving SMMEs a leg up. The World Economic Forum makes a compelling case why large corporations should see it as not only government duty, but their responsibility as well to give SMMEs a fighting chance. This is because small enterprises represent about 90% of all companies and generate nearly 70% of jobs and GDP globally. The economy does not start and end at the JSE. But the large companies listed on the JSE have a crucial role to play in making ESD impactful in the country. Most of the JSE-listed companies who today have a global reach were once SMMEs — it should come naturally for them to give back to a society that has given them so much. SMMEs are the bedrock of developed and developing economies. They are at the heart of economic growth strategies for most emerging markets looking to climb the development curve. And with SA being the most unequal society in the world, with a jobless crisis so big it’s uncomfortable to even talk about, more must be done by the private sector to play its corporate citizenship role. Government must also come to the party and ensure businesses are properly incentivised to ramp up their ESD programmes. As one political leader said in this edition, the government can play a more meaningful role in unleashing their spirit on entrepreneurship in this country. The cancer of corruption, which as you would read in this edition has also infected ESD programmes, must be uprooted. Companies must make sure SMMEs looking for business opportunities have avenues to sound the alarm when they are bribed to participate in ESD programmes. Corruption can be defeated if all in society close ranks and opportunities are given to those who deserve them without paying a bribe. We hope this edition would not just open the conversation on ESD, but lead to tangible change in how these programmes are conceptualised and implemented for the betterment of the republic we all call home. Business Day November 2024 3
Business Day Enterprise Supplier Development Foreword in partnership with Microsoft
Microsoft — Accelerating growth and innovation for SA’s tech SMMEs Lillian Barnard, president of Microsoft Africa At Microsoft, our mission is clear: to empower every person and every organisation in SA to achieve more. I’m especially proud of our commitment to enterprise and supplier development (ESD), where we’re focused on giving SA’s small, medium and micro enterprises (SMMEs) the resources, insights and opportunities they need to succeed. While technology is critical; it’s also about creating lasting impact by breaking down barriers, supporting entrepreneurs and making sure opportunity is within reach for every business owner with a vision. Through our emerging partner programme (EPP) and equity equivalent investment programme (EEIP) we’re helping SMMEs grow in a sustainable way. With access to technology, training and tailored support, we’re building an ecosystem that fosters resilience, Lillian Barnard growth and innovation across every level. These aren’t just programmes — they’re pathways to a more inclusive, sustainable economy. Microsoft once began as a small start-up with big ambitions and grew through our commitment to innovation and growth. This has fuelled our passion for supporting SMMEs in SA, as we understand first-hand the challenges and opportunities that come with building a business from the ground up. We know that technology is a powerful enabler. Artificial
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intelligence (AI) and digital tools are helping businesses streamline operations, make informed decisions, solve societal challenges and drive business and economic growth. For many of our partners, this means being able to focus on what truly matters: their customers, their communities and their mission. By adopting these technologies, entrepreneurs are positioning themselves to tackle challenges, innovate and create a stronger future. Our commitment to invest R1.3bn in SA’s future is part of our long-term vision. This is about more than figures — it’s about equipping a generation to successfully harness the digital economy and creating a pipeline of talent that SA can rely on. By working with TVET colleges and industry partners, we’re dedicated to closing the skills gap and preparing young South Africans for meaningful, futureready careers. Seeing what’s possible when opportunity and innovation meet is inspiring. SA’s entrepreneurs are resilient, driven and forward-thinking, and at Microsoft we’re committed to supporting them every step of the way. Together, we’re not only building successful businesses but also laying the foundation for a future where everyone can participate in and benefit from a thriving digital economy.
AI: Driving growth and opportunity for South Africa’s SMMEs Microsoft South Africa’s commitment to Enterprise and Supplier Development (ESD) is reshaping how small, medium and micro enterprises (SMMEs) can leverage technology for growth. Through initiatives like our Emerging Partner Programme (EPP) and Equity Equivalent Investment Programme (EEIP), we’re empowering businesses across South Africa À Intelligence (AI) and digital solutions. AI isn’t just about automating tasks — it’s about driving À an inclusive economy.
Empowering Businesses through AI Recent research highlights AI’s transformational impact for SMMEs, particularly through tools like Microsoft 365 Copilot. A Forrester Consulting study commissioned by Microsoft shows that Copilot can deliver a return on investment (ROI) of up to À reduction in operating costs and a 6% rise in net revenue, Copilot is helping SMMEs achieve more with less, turning AI into a strategic advantage for businesses in competitive markets. ! " #Á " À $ automates data entry, contract management and provides real-time insights, allowing SMMEs to focus on high-value tasks. This boost in productivity enables companies to meet market demands faster and respond more effectively to customer needs, translating into lasting value in a challenging economic landscape.
Building Capacity with ESD Initiatives Microsoft’s ESD programmes extend beyond individual business growth to address broader skills and capacity needs across South Africa. Through our commitment to invest over R1.3 billion, Microsoft’s EEIP programme offers SMMEs access to the technology, training, and mentorship they need to thrive. The SMME development programme of the EEIP
focuses on both technology and non-technology SMMEs, with the aim of supporting their scaling À independence. The intent with the technology startups is to drive their growth as early stage businesses, while the focus for non-technology SMMEs is to use technology to drive growth À % The technology-based SMMEs will also be encouraged to create a solution for township-based micro-businesses.
AI’s Social and Economic Impact
& À " À ' ( " startup Lelapa AI uses AI to preserve South Africa’s indigenous languages, building language models in isiXhosa and isiZulu. These efforts ensure African languages maintain a strong digital presence, Á ) * "" " preservation alongside innovation. AI’s impact also extends to environmental sustainability. Conservation efforts by organisations like Peace Parks Foundation utilise AI for wildlife protection, using image recognition to monitor endangered species and prevent poaching. These projects demonstrate how AI can help address pressing social and environmental challenges while respecting South Africa’s rich cultural heritage.
Enhancing Supplier Development For many suppliers, digital transformation can feel overwhelming. Microsoft’s EEIP initiatives aim to make this journey accessible by providing SMMEs with the resources needed to grow to streamline their operations and improve customer service, making them competitive within South Africa’s expanding supply chains. M + $ " À essential processes, such as contract management and team updates, enabling SMMEs to respond swiftly to client needs. The Youth Employment Service (YES), a public-private partnership, has used AI to reduce its report generation time from weeks to minutes. By streamlining operations with Continued on page 7
Business Day Enterprise Supplier Development Microsoft in partnership with Microsoft
Microsoft South Africa’s commitment to supplier development is unwavering Kabelo Khumalo Microsoft Africa president Lillian Barnard says enterprise and supplier development (ESD) is not just a tick-box exercise for the multinational giant, but an extension of the company’s long-standing mission to empower every person and every organisation on the planet to achieve more. Barnard said the company had invested a lot in independent software developers. “In 2019 we started the Emerging Partner Programme specifically to offer business development and funding to ICT SMMEs. “We’ve done this by lowering the barriers of entry for SMMEs in terms of asking them what it would take for them to ultimately participate in the Microsoft ecosystem,” she said. “Because you can only start to work with our customers once you have the right certification, we accelerated the journeys for participating SMMEs. “We assist these SMMEs, ensuring that we not only enable them, but also focus on sustainable, diversified and inclusive supply chain development. “The programme has provided access to 150 fully black-owned businesses, giving them accreditation across our various technologies in Microsoft. “Once the partners have completed the certification, they need to be provided with the opportunities to apply for projects to apply what they have learnt during the technical training.” Some of the success stories that have come
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out of the Microsoft emerging partner programme is the Xiquel Group, an IT consulting company and Microsoft business partner specialising in software development and implementation of IT business solutions. Xiquel delivers services to both public and private sector organisations worldwide. The other success story is Nkosi IT, which is a 100% black and 80% female-owned IT consulting group. “They have a footprint in Johannesburg, Durban and in East London.” Barnard added: "Together with our partners, we are looking for ways to help government to create better citizen experiences." It is about engaging with various government agencies and finding ways to automate manual processing, eliminating tedious processes to deliver better, quicker services to citizens. Microsoft and the department of trade, industry & competition (DTIC) earlier this year announced a R1.32bn investment to be deployed over 10 years in the development of black-
owned SMMEs in both tech and nontech sectors. The agreement to investment makes provision for skills development of young black South Africans in emerging technologies and includes a commitment to research and development to prepare SA industries for the fourth industrial revolution. The investment, facilitated under the Equity Equivalent Investment Programme provisions of the Broadbased Black Economic Empowerment Act is designed to provide multinationals like Microsoft, which are not able to facilitate local ownership in their companies, with an avenue to accrue BEE points. They do this through the pursuit of objectives such as ESD, skills development, and research and development for black South Africans. Barnard said the agreement with the DTIC will see the company focus on the digital transformation of over 40 SMMEs and start-ups to make sure that they provide them with new markets, enabling them to grow and also to become net job creators. Barnard said the group was passionate about ESD and sees it as part and parcel of its DNA. “Our global CEO Satya Nadella always says that wherever we operate we have to make sure we create local success. And you know, Microsoft only prospers when the world around us prospers. “We want to make sure that we always focus on delivering impact in the countries within which we operate.”
Continued from page 5 AI, YES can better focus on its mission of equipping young South Africans with essential job skills, thus broadening the supplier base and strengthening the supply chain across the economy.
Partnering for a Digital Future At Microsoft, we believe that meaningful progress comes from collaboration. Through partnerships with the South African government, educational institutions and industry leaders, we’re fostering a digital economy that provides opportunities for all. Our collaboration with the Department of Higher Education and various skilling partners focuses on driving digital inclusion through AI and skills training, and equipping candidates with low-code À government departments. This alignment seeks to enable quicker public service delivery, ensuring that citizens can access essential services with ease. Additionally, partnerships with 18 Technical and Vocational Education and Training (TVET) colleges enable South Africa’s next generation to gain valuable skills in AI, data analytics, and other À institutions ensures a talent pipeline equipped for
digital roles, bridging the skills gap and fostering broader economic inclusivity. Microsoft’s commitment to workforce development is not only driving business growth but is laying the groundwork for a more resilient South African economy.
AI is at the heart of this journey and Microsoft is offering tools that are transforming South African enterprises today while laying the foundation for a thriving digital future.
“Our vision is to create an impact on the South African economy where AI empowers every entrepreneur to compete, succeed, and contribute to a prosperous future. Through initiatives like the Emerging Partner Programme and Equity Equivalent Investment Programme, Microsoft is supporting SMMEs across all stages of growth, helping them build sustainable, resilient businesses,” says Lillian Barnard, President for Microsoft Africa.
Business Day Enterprise Supplier Development IDC in partnership with Microsoft
Supplier development at the core of IDC’s drive to promote job creation Kabelo Khumalo The Industrial Development Corporation (IDC) intends to make a meaningful impact to its supplier base through its Supplier Development Programme. “We have an intentional approach that is not just a tick-box exercise, but seeks to have maximum impact from a development point of view,” said Sandile Makhathini, head of procurement at the IDC. “We are required to spend 2% of our net profit after tax towards supplier development. Our approach to supplier development is two-fold. First, we want to comply with the frameworks and policies set out, and second, we want to drive meaningful impact aligned to our developmental mandate. “We want to partner with our suppliers and equip them with the necessary tools to grow so that they can enhance and scale their services beyond the IDC as an improved offering to their other clients. “Participating in a thriving economy through the creation of jobs, through their offering, is also an important requirement for us.” The resolve by the IDC has started to blossom, helping its suppliers develop more sustainable businesses and positioning them as job creators. One such IDC beneficiary is New Dawn Energy, which supplies petrol, diesel and lubricants. The company, run by Phumi Zwane, one of the few females in the male-dominated petroleum industry, is set for growth after receiving backing from the IDC. The relationship started with New
Dawn Energy supplying the IDC with fuel for its generators. It has since morphed into the corporation assisting the company expand and with the creation of more jobs. To this end, the IDC bought New Dawn Energy a truck — a game-changer for the company as it is now able to control its logistics and gain additional clients. Zwane said the support from the IDC through its Supplier Development Programme came at an opportune time in the life of her company. “The IDC asked me to draft a list of what my business would need [to grow and expand],” she said. “The Supplier Development Programme came in at the right time as I was busy refurbishing the plant we work from. I knew I wanted a bigger site with bigger storage and logistics as well. “The company having its own truck makes things easier. The truck can move 24/7. We can also move from any country and deliver our products.” New Dawn Energy’s site manager Mohau Kometsi can attest to the impact the help from the IDC has had on the business, saying it enabled the company to create job opportunities and improved efSandile Makhathini ficiencies.
Phumi Zwane
“The support of the IDC brought a huge difference in the company. We had to employ more people, some of them on a permanent basis,” Kometsi said. “We’re also able to control the quality of the product by making sure the product is not contaminated. “We are even getting more routes, compared to the ones we had before [we got the truck].” It is this kind of impact that the IDC strives to attain, and is marshalling its resources to give small, medium and micro enterprises (SMMEs) who do business with the IDC an edge. “ESD [enterprise and supplier development] has brought us to a point where we have a better understanding of where businesses are in their development and what their challenges are. Before ESD, it would have
Business Day Enterprise Supplier Development IDC in partnership with Microsoft
Tshegofentse site
been easy to just say a supplier was failing to deliver without an appreciation of what the challenges are,” Makhathini said. “As the IDC, we are saying it is important that we grow and mature our Supplier Development Programme so that we really make the impact we want to make. For example, when a service provider has been appointed on a three-year contract, they should not after the contract has ended walk away with just having made revenue. “They should go out at the end of that three years having gained more than revenue. We want them to leave having established businesses that are sustainable through their association with the IDC.” The IDC’s supplier development initiative has given the corporation scope to impact a variety of companies working in the different industries, ranging from the petroleum sector to facilities services such as security and cleaning, and even transport and logistics. The IDC Supplier Development Programme has also assisted several black-owned suppliers on its database. One such beneficiary is waste management company Tshegofentse Facilities & Engineering. The company, based in Gauteng, provides several solutions including assisting waste generators with compliance through
training. The company’s main focus is hazardous and medical waste. Thuto Mosholi, a director at Tshegofentse, said the IDC’s assistance has been of great help to the company and its growth objectives. “IDC assisted us with a four-ton flatbed truck, a skip trailer and a lot of skip bins. The IDC’s help made a significant impact,” Mosholi said. “To organisations like the IDC who
support us, I would like to say to them, thank you very much because we can now provide low-entry jobs to people who don’t have an educational background.” Tshegofentse Facilities & Engineering has reported exponential growth, recently opening an office in Cape Town, with ambitions of taking the business nationally. “For us there are no boundaries. We definitely see the company growing and having a national footprint,” said Neo Mosholi, a laboratory manager at the waste management company. Tebatso Mokgoro, IDC’s marketing and communication manager, said: “During this Entrepreneurship Month [November], the IDC is on an awareness drive to educate entrepreneurs on the benefits of engaging and applying to be enlisted as vendors on Supplier Development Programmes, which many corporations run. “Our transformation mandate as the IDC is clear, and so is our focus on industrialisation in South Africa. “We do, however, acknowledge that not all SMMEs are ‘funding ready’, but their businesses could support big entities by providing valuable services and using the opportunity to scale, diversify their offerings and access new markets.”
Neo and Thuto Mosholi
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Empowering innovation: meet the tech innovators shaping tomorrow Microsoft South Africa’s Emerging Partner Programme empowers South African Small, Medium, and Micro Enterprises (SMMEs) to unlock their potential and shape the future of innovation. Business Applications, Data & AI, Digital & App Innovation, Infrastructure, Modern Work, and Security are the six key solutions areas where these partners are driving industry transformation and exceeding customer expectations. These businesses, many of which are female owned, highlight the diversity and creativity fuelling this success and embody the programme’s vision that today’s SMMEs can be tomorrow’s big inspirations. Microsoft South Africa is proud to stand behind them, celebrating their achievements as À
African Ideas Corporation African Ideas Corporation is a strategy and innovation consulting company and a Microsoft Solutions Partner for Azure Digital & App Innovation, focused on Africa and dedicated to developing technologydriven solutions that address real-world challenges. At the core of African Ideas is a leadership team passionate about delivering measurable results. Working with both private and public sector clients, the company offers tailored services that range from data analytics to cloud solutions and digital transformation strategies. A key focus is the development of a capable and capacitated state with the information at À end, African Ideas has developed a suite of public sector and municipal solutions À administration as well as the citizens of South Africa. Discover how African Ideas Corporation is reshaping Africa’s economic landscape at africanideas.co.za
Akili IT Services (Pty) Ltd Akili IT Services (Pty) Ltd, founded in 2004 by Chris Mabhele, is a technology consulting company dedicated to delivering
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business-driven IT solutions that empower organisations to enhance productivity and streamline operations. As a Microsoft Solutions Partner for Modern Work, with plans to expand to Business Applications and Digital & App Innovation, Akili has earned a reputation for excellence, offering end-to-end support that includes proactive IT infrastructure management, maintenance, and user training to ensure seamless adoption of new systems. The company works closely with public institutions, private businesses, À to provide tailored, scalable solutions that address unique business needs. Learn more about how Akili IT Services can support your organisation’s digital journey at akili.co.za
AmandaN Projects AmandaN Projects and PMO Services Pty (Ltd), founded in March 2020 by Amanda Nombongo Noholoza, is a female-owned company specialising in comprehensive project management and advanced IT À and digital transformation, AmandaN Projects brings expertise in ICT project management, software development, ! "! #$ À intelligence, machine learning, digital marketing and IT support. The company is À % % applications, including MS 365, MS Teams, SharePoint and OneDrive. With a commitment to customer satisfaction and impactful results, AmandaN Projects delivers high-value solutions that support operational goals and create meaningful, lasting change for their clients.
Leveraging deep industry knowledge and a proactive approach, AmandaN Projects has become a trusted partner for organisations seeking to unlock the full potential of technology. Discover more about how AmandaN Projects empowers South African businesses to achieve sustainable growth through technology at amandan. co.za
Azi Mt Technologies Azi Mt Technologies is a female-owned Professional Services and Technology company, dedicated to delivering highquality, smart solutions to businesses across the country. The company helps small to large-sized businesses achieve their goals by providing best-in-class technology infrastructures and solutions on Microsoft platforms. This commitment to quality and customer-centric solutions has enabled Azi Mt Technologies to grow steadily since its inception, supported by a strong work ethic and a robust business model. Azi Mt Technologies is staffed by a team of tech-savvy and experienced professionals who keep pace with changing technology trends, ensuring that solutions remain updated and relevant. The company has experience across a variety of sectors and works toward building long-term relationships with clients, rooted in trust and a comprehensive understanding of each client’s unique needs. Whether your business operates in the cloud or on premise, Azi Mt Technologies offers a range of services that bridge the gap between your business, customers, prospects, and employees. Discover how Azi Mt Technologies can help your business with Microsoft products by visiting azimt.co.za
ejoobi Bright Innovation Technical Solutions Bright Innovation Technical Solutions (BITS) is a technology company dedicated to delivering high-grade, custom software and business intelligence (BI) solutions for a diverse range of clients, from large state entities to mid-sized and small businesses. BITS specialises in custom software development, data analytics, and cloud services, helping organisations streamline their operations and achieve strategic objectives. Their team brings over 35 years of combined experience in IT, distilling deep expertise across various technology stacks and 26 industries to help clients solve complex challenges. Their service offerings include Microsoft planning services, BI and data insights, cloud service solutions, intelligent applications, and systems consultancy. For a transformative approach to your digital journey, partner with Bright Innovation Technical Solutions. Learn more at bitstech.co.za
DV8 Technology Group Founded in 2006, DV8 Technology Group (DV8) is an Information and Communications Technology (ICT) company with a mission to deliver agile, cutting-edge solutions across Africa. DV8’s services include consulting, systems integration, and managed services focused on critical ICT needs such as end-user support, server infrastructure, virtualisation, cloud and training. Serving both the public and private sectors, DV8 has extensive experience in essential industries, including À and transport. With a strong team and an unwavering commitment to Africa’s growth, DV8 Technology Group stands as a natural partner for multinationals and local businesses alike. Learn more at dv8techgroup.co.za
Founded in 2016, ejoobi is an HR technology company that leverages À recruitment process. With 38% women ownership, ejoobi is led by a team with expertise spanning industrial automation, IT, sales and marketing, data science, AI bots, software development, electronic engineering, people development and career coaching. ejoobi’s AI-powered recruitment software features auto-matching for job À manages the client’s application from job À and communication tools, all of which help employers source, screen, and engage À hiring process. ejoobi’s mission is to provide À inspires lives through innovation. For more information, visit ejoobi.com
Elethu Systems EconArch Consulting and IT Services (Pty) Ltd Brilliware Founded by a team of passionate technologists, Brilliware simply stands for “brilliant software and hardware solutions for your business”. Headquartered in Midrand, with plans to expand into the rest of the African continent and globally, Brilliware aims to leverage home-grown African talent to deliver world-class technology solutions. Brilliware, a Microsoft Solutions Partner for Azure Digital & App Innovation and Azure Infrastructure, is on a mission to hire and train top technology professionals to provide innovative, meticulously crafted solutions to both large enterprises and SMMEs across various industries. Brilliware is dedicated to driving Africa’s digital journey and delivering transformative technology solutions. To learn more about Brilliware and its vision for the future, visit brilliware.com
Founded in 2018, EconArch Consulting and IT Services (Pty) Ltd is a company specialising in information technology consulting services. EconArch’s services include business planning, aligning technology and processes with business objectives, and offering support and operations to ensure the successful implementation of business solutions. The company also assists organisations in planning for high availability and contingency, crucial for supporting business operations. By concentrating on the basics, EconArch endeavours to provide results that can be implemented effectively while minimising complexity. This approach enables organisations to establish an enterprise architecture that directly supports À improvements through versioned releases. For more information about EconArch Consulting and IT Services, visit econarch.com
Elethu Systems is an IT consulting and managed services business that combines deep expertise with innovative solutions to propel businesses forward. As a trusted Microsoft partner, Elethu Systems specialises in Modern Workplace, business applications and Cloud/ hybrid infrastructures, offering agile and scalable solutions for clients across diverse industries. With services ranging from initial strategy to execution, Elethu ! " À needs, providing tailored support through specialised IT consulting. Elethu Systems provides a comprehensive portfolio that includes SharePoint development, Microsoft Power Platform services, Azure solutions, cybersecurity, Microsoft Teams integration and ongoing technical support. From strategy development through to implementation, Elethu Systems’ services are designed to meet and exceed expectations, building a foundation of trust and lasting client relationships. Discover how Elethu Systems can support your business transformation journey by visiting elethusystems.co.za
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Intellitech Systems Founded in 2013 and based in Waterfall, Midrand, Intellitech Systems is a premier provider of customised Microsoft À to meet the distinct needs of South African businesses. With specialisations in Microsoft 365, Azure, and Security Stack, Intellitech goes beyond generic offerings, delivering tailored solutions that ensure each client’s technology infrastructure aligns precisely with their strategic goals. Led by CEO Kivan Maharaj, Intellitech À healthcare, and mining, bringing industry À commitment to security and operational À safeguarded and accessible, empowering À reliability. What sets Intellitech apart is its collaborative approach: the company acts not just as a service provider, but as a trusted partner, working hand-in-hand with clients to enhance productivity and minimise risks. For more information, visit intellitechsystems.co.za
Kakanyo Business Solutions Founded in 2004, Kakanyo Business Solutions is a leading Pan-African Johannesburg. Known for its innovative approach, Kakanyo provides solutions that À across Africa. Originally established as a specialist in Business Intelligence (BI), the À Business Process Management (BPM), project and programme management, With a mission to bridge the digital skills gap, Kakanyo invests in skills development
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thrive in a digital economy. computing, cybersecurity, connectivity, and À ! Proudly a Level 1 B-BBEE contributor, Kakanyo is ready to lead African businesses towards successful digital transformation and enduring success. For more information, visit kakanyo.co.za
ensuring they remain competitive in an increasingly digital world. As a female-led business, Nokulunga , with an innovative approach to solve clients’ 1 + brings a wealth of knowledge and vision to the company, offering clients tailored solutions that enable them to use the power of cloud technologies effectively. By focusing on data modernisation and AI infrastructure, the business helps organisations optimise their processes, make data-driven decisions and lay a solid foundation for future growth. For more information, please send an email to thootse@nokulunga.co.za or visit nokulunga.co.za
Nkgwete IT Solutions Nkgwete is a Northern Sotho word " # $% À services and the digital workplace. Nkgwete businesses to grow and transform, while focusing on their customers. & '()* $% delivered end-user computing services to public sector entities such as Eskom, $% + % )( ((( devices for an enterprise customer and migrated 8,000 devices to Windows 10. It manages 2,000 Installation, Move, Add, , - . / ,- 0 achieved a 100% SLA for these IMACDs for over 10 years. $% & majority black female-owned, Level 1 B-BBEE enterprise. For more information, visit nkgwete.co.za
Nokulunga Consulting Founded in July 2019 by tech entrepreneur 1 $ % , a strategic consulting company specialising in digital transformation. With a strong focus on cloud computing, data and AI infrastructure modernisation, Nokulunga Consulting guides businesses through the 2
Projectized Management (Pty) Ltd Projectized Management (Pty) Ltd is a female-owned consultancy transforming industries through tailored digital solutions 2 3 Johannesburg, with a presence in Durban, Projectized partners with clients across key sectors including banking, retail, and offering spans analytics, application integration, big data, DevOps, and more, demands with precision. With a solid foundation in enterprise architecture, Projectized collaborates with À % 4(( 2 end solutions that cover everything from in-depth analysis and design to seamless ensures that every solution aligns perfectly with clients’ strategic objectives, fostering sustainable impact. As a Level 1 B-BBEE contributor, Projectized is deeply committed to community upliftment and developing local talent. For more information, visit projectized.co.za
Rivoni Matimba (Pty) Ltd Rivoni Matimba (Pty) Ltd is a forwardthinking company dedicated to shaping Africa’s sustainable and digital future. Headquartered in Waterfall City, Midrand, and established in 2016, Rivoni Matimba offers comprehensive solutions in energy, ICT, and infrastructure, serving sectors like government, healthcare, and manufacturing. Their expertise spans a wide array of services, from cloud migration À digital transformation. Leading the way in renewable energy, Rivoni Matimba integrates solutions like solar and wind power into reliable grid systems, coupled with energy storage, to provide eco-friendly power that meets Africa’s growing energy needs. Their focus on sustainability ensures that every solution is designed to reduce environmental impact while delivering high performance. Additionally, Rivoni Matimba’s ICT services support clients in areas like data management, remote working, and regulatory compliance, keeping operations À For more information, visit rivonimatimba.com
Soma Solutions Founded in 2008 by Marilyn Radebe, Soma Solutions is a 100% womanowned IT consultancy that drives digital transformation for South African SMMEs and large enterprises. Based in Midrand, Gauteng, Soma Solutions specialises in a range of ICT services, including custom application development, SAP ERP implementation, e-health solutions, and cloud infrastructure. As a Level 1 B-BBEE contributor, Soma Solutions is committed to creating impactful, locally-driven solutions that empower businesses to thrive in a digital economy. Soma Solutions partners with clients to deliver tailor-made, end-to-end IT services, ensuring every solution is aligned with clients’ strategic goals. With expertise across the Microsoft Cloud stack, including Azure, Microsoft 365, and Power Platform,
Soma provides comprehensive support À productivity. The company’s customer-centric approach allows for rapid deployment of skilled teams, delivering timely solutions that address unique client needs. Visit soma-solutions.co.za for more information.
Sourceworx With over 16 years of experience in the ICT industry, Sourceworx is an IT partner renowned for providing customised solutions that address the unique challenges faced by organisations. Based in Hyde Park, Johannesburg, Sourceworx serves clients across both the public and private sectors, locally and internationally, with specialisations in cybersecurity, managed services, and custom software development. As a Level 1 B-BBEE company, Sourceworx is committed to promoting diversity, equality, and sustainability in all aspects of IT. Sourceworx’ extensive suite of services includes advanced security operations through its Cybersecurity Operations Centre (SOC) and Network Operations À intelligent threat detection, proactive data protection, and real-time analytics. Their proprietary tools, such as iManage for project management and EDVantage for learning management, streamline processes and foster organisational growth. Sourceworx ensures that clients achieve both immediate improvements and À valuable ally in today’s ever-evolving digital world. Visit sourceworx.co.za for more information
Talanta Consultancy Services Talanta Consultancy Services is an innovative female-owned management consultancy based in Johannesburg, specialising in Microsoft technology solutions, focusing on Data, AI, Cloud, and Modern Work environments. As the only graduating Emerging Partner to
deploy Copilot in Africa, Talanta leverages Microsoft’s cutting-edge technologies to solve complex business challenges in À healthcare. Their approach uniquely combines management consulting expertise with transformative technology, empowering clients to automate processes, make data-driven decisions, and mitigate operational risks effectively. Founded in 2020, Talanta’s team of seasoned consultants brings a wealth of diverse skills and insights, ensuring that every project is approached with innovation and sustainability in mind. A standout initiative, the Kukua School of Leadership, partners with leading South African business schools to deliver tailored educational programmes, fostering leadership and capability across the continent. Talanta is dedicated to empowering African organisations for long-term success. To fnd out more about Talanta, visit talanta.co
Zoe’ Projects & Consulting Zoe’ Projects & Consulting is a femaleowned Process Engineering Firm based in the heart of Sandton, Gauteng that was founded in 2018 and utilises “Zoe’Bot as a Service” technology. Specialising in AIdriven solutions to address complex data and process challenges and recognised for its innovative technology, Zoe’ Projects offers scalable, affordable data management and process standardisation solutions for organisations aiming to streamline operations and elevate data quality. Zoe’ Projects delivers a comprehensive suite of services, including data analytics, quality reporting, business process improvement, and project management. With expertise in process engineering, Zoe’ Projects crafts high-impact solutions tailored to clients across various sectors, Á and make informed, data-driven decisions that drive growth. Their combination of deep industry expertise and cutting-edge AI technology positions Zoe’ Projects as a transformative force in South Africa’s consulting arena, where they consistently deliver innovation and measurable value. Visit zoeprojects. co.za to fnd out more. Business Day November 2024 13
Business Day Enterprise Supplier Development Old Mutual SMEgo in partnership with Microsoft
Old Mutual’s SMEgo opens digital doorway to small business funding Kabelo Khumalo Running a small or medium-sized business can be tough — it is not anything close to a walk in the park. An entrepreneur is not just the owner; they are the backbone of their enterprise, juggling many roles to keep the wheels turning, while always having a finger on the pulse of what customers want. Lack of funding remains the biggest stumbling block for SA’s SMMEs. The inaugural SA SMME access to finance report, Finfind, sponsored by SA SME Fund, found the SMME sector in SA provides a compelling, largely untapped opportunity for innovative funders able to develop new lending models and risk assessment tools to address the challenges of this complex and burgeoning market. The report provides estimates of the SMME credit gap in SA of between R86bn and R346bn. Enterprise development funding is funding made available by the private sector in return for points on their BEE scorecard. Nobesuthu Ndlovu, an SME director at Old Mutual Corporate, says enterprise and supplier development (ESD) programmes by large corporates could go a long way in giving SMMEs the leg up, among other interventions. “ESD is very important to us because, first of all, we appreciate that it takes quite a lot for a business to grow from being a small business to Nobesuthu Ndlovu being a medium business to being a large business. “And through that journey of growth, it’s very helpful if
there is a corresponding partner who can walk the journey with you and that also enables you by way of giving you business or giving you funding or giving you access to more customers. “This is important overall because we understand that it is the small and medium businesses that are creating employment,” Ndlovu said. “If we can help these businesses to become sustainable, it means that they can retain employees and they can employ even more employees, which then makes for a much better macroeconomic situation solved for us as South Africans and as a large corporate operating in SA. “It is critical and imperative for us to participate in enabling and ensuring we have a functioning economy. And that relates to employment being one of the biggest factors. In a nutshell, SMEs enable employment. We want to be part of being an enabler for SMEs.” Finfind research found that appetite to fund smaller funding amounts is significantly less than the appetite for larger loan sizes, albeit that 44% of the total SMME funding requests are for amounts less than R250,000. While many funders claim to offer funding for requests under R1m, most SMMEs battle to raise funding in this range. Funding for between R250,000 and R1m represents the highest percentage of the loan sizes requested by SMMEs, as well as the highest offered by funders. To make it easier for their clients to access funding and run proper businesses, Old
Mutual in 2022 established SMEgo to solve the most basic problems confronting SMEs, such as lack of funding, access to markets and cash flow management. The evidence suggests this is having a dramatic effect on the business success of Old Mutual clients. SMEgo was created to ease pressure and help take businesses to even greater heights. It does that by providing a userfriendly, digital platform to do daily business tasks and tackle all main business challenges. When partnered with SMEgo, running, managing, financing and growing a business becomes an easy, integrated and seamless experience. “We really do want to make an impactful difference to businesses and we’re doing that through very deliberate initiatives such as SMEgo. And what’s really great about that platform is that it’s a holistic offering. It gives everything that a business owner needs,” Ndlovu said. Engineered to catalyse business growth and optimise client engagements, “The platform will launch the following features as at end November to make it a more comprehensive value proposition, that is Tap to Pay, Marketplace, Legal, HR and Payroll as well as Financial Management.” Ndlovu added that the above features will launch in response to customer feedback. “We’ve understood the market and we are providing solutions that really address the main pain points that businesses experience. Second, through our funding propositions we are really also putting our money where our mouths are by providing various SME specific funding solutions to enable these businesses,” Ndlovu said.
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Enterprise and Supplier Development (ESD) programmes are key to job creation and SMME growth in South Africa By Mpumi Sithole, Executive head of corporate affairs
Small, Medium, and Micro Enterprises (SMMEs) play a critical role in growing the South African economic landscape including driving job creation. South Africa's staggering unemployment rate of 33.5% highlights the critical necessity for economic regeneration. While SMMEs are key to job creation and building strong local economies, they cannot bear this immense responsibility alone. Their growth path bears various challenges. Small, Medium, and Micro Enterprises (SMMEs) play a critical role in growing the South African economic landscape including driving job creation. South Africa's staggering unemployment rate of 33.5% highlights the critical necessity for economic regeneration. While SMMEs are key to job creation and building strong local economies, they cannot bear this immense responsibility alone. Their growth path bears various challenges. SMME’s in South Africa face several challenges that hinder their progress, amongst others, they struggle with access to funding, securing markets, cash flow, as well as lack of business and technical skills. These limit the ability of SMMEs to grow and contribute meaningfully to the economy. A collaborated effort from both public and private sectors is key to creating an enabling environment for SMMEs to thrive through legislations, policies and programmes that support them. Thuthukani, Thungela’s enterprise and supplier development programme is intentional about supporting small businesses from host communities with the aim of stimulating economic growth. The programme provides small businesses with business development
Driving opportunity through partnership Frans Motau and Nkosimphile Mhlangu, directors of Ingy Industrial and Tech Solutions, are steering their business forward with 3 new trucks and trailers. This was made possible by R9.5 million in co-funding from Thuthukani and Absa, showcasing the power of collaboration for economic empowerment.
training, mentorship, technical enablement, and loan funding at preferential rates, to help them grow their businesses and create employment opportunities. Thuthukani supports suppliers currently within Thungela’s supply chain and other small businesses outside of Thungela’s value chain. While financial support and business training for SMMEs is key, it is ineffective without the relevant technical capability to help them deliver on their contractual obligations. The strength of Thuthukani is in providing the much-needed technical enablement in addition to financial support and business training. This sets them in good stead to deliver quality work and access more business opportunities. In addition, Thungela recently signed an MoU with Absa which aims to extend access to funding for small businesses doing business with Thungela. Through this collaboration, we will be able to amplify the economic impact of our Thuthukani programme, and this serves as a model for how banking institutions and corporate entities can collaborate to support the SMME sector.
Celebrating growth with Thuthukani Through Thungela’s Thuthukani Enterprise Development Programme, Sinegugu Jiyane of Theza Logistics & Projects has taken her business to the next level. With a funded tracking system, driver monitoring, and diesel bowser for her trucks, her journey of growth and success is just beginning.
Let’s join forces in strengthening the SMME sector as it continues to contribute to income generation for households, facilitate youth development and boost overall economic activity in local communities.
by
Fueling Economic Growth! Through Thuthukani, our enterprise and supplier development programme, we are energising entrepreneurs and powering the engine of economic progress in mining communities. That s Impact with Purpose. thungela.com
Business Day Enterprise Supplier Development Mining in partnership with Microsoft
Mining industry urged to do more on supplier development Kabelo Khumalo The National Black Business Caucus (NBBC) has urged SA’s mining industry to use its huge procurement spend to up the ante on enterprise and supplier development (ESD), arguing that the sector is not doing enough to empower its suppliers. The NBBC is a part of the Black Business Council (BBC) and aims to help black-owned businesses in SA participate in the country’s mainstream economy. NBBC CEO Volchere Kgekwane said the mining industry was failing its suppliers and services providers, particularly small black companies, but credits the financial sector for having come to the party on the ESD front. “The banking sector has been very proactive and they work with us and whatever they do, they try to do ESD with their current supplier database and so on. But the mining sector is a huge abuser of this system.” SA’s mining industry spends north of R20bn procuring goods and services on an annual basis. Kgekwane said while the companies in the sector have covered ground in procuring from black business, they have not shown the same zeal in empowering and training their suppliers. There are several case studies that show that when done correctly, ESD in the mining sector can lead to thriving companies and job creation. Exxaro Resources’ ESD programme promotes economic transformation through developing entrepreneurs and suppliers, and creating competitive markets for them to generate more jobs and establishing sustainable communities. Exxaro is committed to creating opportunities for black-owned suppli-
18 Business Day November 2024
ers and black entrepreneurs to encourage economic growth. Some of the success stories from the Exxaro ESD programme include an entity called Sokoma Transport and Logistics, which received an interestfree loan of R10m from Exxaro’s ESD programme. The loan enabled Sokoma to save R130,000 a month by settling leasing agreements in 2020. The company, owned by Themba Dabula, was able to purchase a grader and articulated dump truck. With a three-year road construction and maintenance contract at Mafube, Dabula must maintain a substantial asset base and a storage facility in Middelburg, Mpumalanga. Another example from the Exxaro stable is UMI Plant Hire, which also received a R10m interest-free loan to purchase two articulated dump trucks from Bell Equipment in 2020. The balance of the R12.6m purchase was funded by Bell Equipment, with after-sales support at a reduced rate.
Owned by Mshoza Malaza, UMI Plant Hire supplies equipment to a contract miner at the Belfast operation. The funding saved UMI Plant Hire R150,000 in monthly leasing costs and strengthened its asset base. Harmony has also scored some success in its ESD programme. One such case study is an outfit called Glorificar Trading, which received enterprise supplier development assistance for procurement readiness, gap analyses, vendor applications and mentorship. Harmony’s support has enabled Glorificar Trading to create 27 permanent job opportunities. Glorificar Trading is a 100% blackowned company specialising in logistics and transportation. Some of the milestones Glorificar has registered include a recent five-year contract to deliver workers at one of Harmony’s mines in the Free State. Another SMME to have benefited from Harmony’s ESD programme is Tailor Made Trading and Projects. The business, located in the Matjhabeng Municipality in the Free State, benefited from ESD assistance for procurement readiness, gap analyses, pre-technical assessment, vendor applications and mentorship, including growth support from the Harmony Leano Fund. Tailor Made is said to be the only black women and youth-owned company in SA specialising in demolition, rehabilitation and shaft filling. Harmony’s support enabled the company to create 22 job opportunities. The Minerals Council SA last year commissioned a report to establish the positive impact mining has on employment, training and development, socioeconomic development and enterprise development across various sectors. In total, 12 of the Minerals Council’s larger members were surveyed. The survey found platinum group metals spent R273m on enterprise development projects. Gold mining companies reported spending R98m on ESD, while the coal industry spent R305m.
Business Day Enterprise Supplier Development Other Foundation in partnership with Microsoft
Call to include LGBTI+ community in preferential procurement Kabelo Khumalo The Other Foundation, an African trust that advances equality and freedom in Southern Africa with a particular focus on sexual orientation and gender identity, says LGBTI+ people must be recognised as a significant economic segment in SA. Caio de Araújo said the organisation is calling for more support to LGBTIowned businesses and the integration of LGBTI+ ownership in procurement scorecards to enhance their representation in supply chains. “This is something that we propose right now. In SA, as in many other places in the world, many companies do have diversity and inclusion policies”. “For instance, they ensure that their workplace is inclusive of LGBTI+ people. That there is no discrimination based on sexual orientation and gender identity. So some of those policies are already in place,” said De Araújo. “Now, what we are proposing is, while what we have is very good, and reflects victories that have been achieved over the years, there’s still more that could be done”. “For instance, we could invest in preferential procurement and making sure that LGBTI+ people are adequately included in supply chains.” The Other Foundation recently released a study that shows the buying power of the LGBTI+ community. The 72-page report titled “Size Matters” quantifies the size of the LGBTI+ market for the first time since the 2017 estimate that pegged the value of the market at R53bn to R204bn. It polled 400 respondents, ensuring a margin of error of 4.9% and estimating the population size of the community at between 1.65% and 6%. De Araújo said since the publication of the research’s findings, the organisation has received positive feedback from businesses, academics and
from LGBTI+ civil society groups in the sense that the research really helps bridge a data gap. “It is the first research of its type in SA. It really focuses on the potential of inclusion in an economic sense. It shows that inclusion is not only the morally right thing to do, we should treat everyone equally, but it also shows that it’s smart business,” De Araújo said. “There is something to be gained not only by LGBTI+ people, but by SA as a whole. If LGBTI+ people are doing well economically, everyone gains, the entire society gains. So for us, it’s really important to highlight that. That connection between LGBTI+ professionals, LGBTI+ communities and society at large.” The survey found that 90% of the respondents were engaged in income-generating activities, with three quarters employed and the remainder as active entrepreneurs. About 44% hold managerial positions, and nearly one-third have savings exceeding R100,000. It also found that just more than 61% of
the LGBTI+ individuals were socially conscious consumers, preferring businesses that demonstrate LGBTI+ inclusion. The report has the potential to provide valuable insights for businesses to tap into the growing power of the “pink rand” and align with their broader social justice goals of equality and inclusion. “Our community contributes at least R250bn to the national economy every year. This is not just a number, it represents the power of our diversity in action,” said Neville Gabriel, CEO of The Other Foundation. “Despite the massive barriers that many still face, from subtle bias to overt discrimination, and the heavy burdens of social responsibility that many have to carry, LGBTI+ people are earning, and moving the economy in ways that deserve to be recognised.” The survey found that 25% of respondents believed that they did not benefit from equal career opportunities compared to their non-LGBTI+ co-workers as progressive laws that prohibit discrimination based on sexual orientation collide with social attitudes, with stigmas persisting, especially in rural and destitute areas. Gabriel, in a foreword to the report, called for inclusive policies and targeted support to unlock the full potential of the LGBTI+ community, saying inclusion isn’t only a moral imperative, but also smart business. “We hope that the findings shared in this report will initiate conversations across boardrooms, government halls and civil society platforms, and inspire bold action to support greater economic participation by the LGBTI+ people — because the LGBTI+ market matters for doing good business.” Business Day November 2024 19
Business Day Enterprise Supplier Development NPO/Ecosystem in partnership with Microsoft
What corporates think about ESD Kabelo Khumalo While the government has a role to play when it comes to creating a policy and economic environment that will nurture small and medium enterprises, the private sector has a critical role to play too as large enterprises have the means and the expertise to aid entrepreneurs through enterprise and supplier development (ESD). ESD programme impact can be maximised through providing support that is holistic in nature. This includes partnering with organisations that share the same values and objectives when it comes to developing small enterprises. The support needs to be based on a comprehensive assessment of small enterprise challenges as well as the opportunities they can exploit. However, a recent study conducted by the University of Pretoria’s Gordon Institute of Business Science (GIBS) shows that some corporates still have a “tick-box” attitude towards ESD. Below are some responses GIBS got from unidentified corporates: “There’s a sincerity missing. Whether it’s from us, the ESD practitioners or
from some of the corporates, I think we talk a lot about small businesses being the engine of the economy and all of that. And then you’d think that when a corporate has the opportunity to support just 10 businesses they would go all out, but ja, it’s hardly ever like that. It’s just that we are serious about helping small businesses, we want to see them have jobs, but it’s never really like that.” — Corporate respondent “At the moment it’s like public affairs ... it makes us look good ... it’s more of a social responsibility. You need to shift the narrative that there is an economic benefit to the corporate that’s doing this ... and on that basis you will have a lot more success.” — Corporate respondent Volchere Kgekwane, CEO of the National Black Business Caucus, highlighted significant inequalities in access to ESD funds in SA. He said although ESD had the potential to create jobs and foster small, medium and micro enterprises (SMMEs), it was often treated as a formality rather than a genuine effort
It’s in the national interest to fix SA’s ESD ecosystem Kabelo Khumalo SA depends on a thriving small, medium and micro enterprises (SMME) sector to drive economic growth and create muchneeded jobs. To this end, enterprise and supplier development (ESD) programmes run by large corporations are seen as vehicles that are well placed to drive job creation, particularly among the youth, which constitutes the vast majority of the unemployed, according to
20 Business Day November 2024
the most recent study by the B-BBEE Commission. However, cross-sectional qualitative research conducted between October 2023 and March 2024 by the Gordon Institute of Business Science (GIBS) and financed by SMME financier Edge Growth, found much ground still needed to be covered to make the programmes impactful. The study ended up with a release of a white paper in October 2024. The research found that despite being
Volchere Kgekwane
to uplift. “Big business needs to understand that the ship is sinking. If the ship goes down, we all go down. Entrenching ESD into the South African economy requires all stakeholders to work together.” The stench of corruption has also not escaped ESD, a few SMMEs told GIBS. “I’ve had an experience where I was told which supplier I needed to work with because that supplier had a relationship with the head of ESD. I’ve had experiences where an ESD specialist says to me, well we want to sponsor you but I want a cut out of it.” — SMME respondent
valued at between R20bn and R30bn a year, inadequate attention has been given to ascertaining whether ESD programmes lead to SMMEs’ longterm sustainability. Drawing from other research on the ESD sector in SA, the GIBS white paper notes that there are varying degrees of commitment to transformation resulting in inconsistent levels of compliance and engagement with the ESD programme. The GIBS study put forward agenda points to help corporates make their ESD programmes more effective and meaningful. GIBS suggests corporates’ philosophy and overall approach to transformation should be visible to stakeholders and in alignment with the design
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Business Day Enterprise Supplier Development Economy in partnership with Microsoft and execution of ESD programmes. The institution also says companies must ensure ESD is integrated into the day-to-day operation. Businesses must build an understanding of exactly how long it takes to develop a business which can be part of the company’s value chain. GIBS also says businesses must articulate what activities or actions in their ESD programme they expect will lead to particular outcomes and why they think these strategies and resources will achieve the goals they have set. GIBS also advises companies to give serious thought on how they can contribute to a functioning ESD ecosystem. “This research is a good start to crucial conversations and decisive action within the SME development sector. There has been a lot of impactful work done by corporates, SMEs and business development service providers,” says Nabeela Vally, head of business development at Edge
Growth. ernance structures, in“Ultimately, what this dicating the need for ESD research indicates is strategies to provide adthat we can both recogditional support so that nise the achievements smaller companies. “The study puts the spotmade within the ESD light on critical issues space to date as well as that require attention in address the ongoing the ongoing implementwork required to create ation of BBBEE, and a sustainable, long-term which should be on the impact for future genpolicy agenda of governerations.” Tshediso Matona GIBS professor Kerrin ment and on the comMyres said the research pliance agenda of private reasserts the need for and public sector entitmore impact measurement metrics ies,” said Tshediso Matona, the commissioner for BBBEE. and better benchmarks to assess “success”. “For example, the survey results The BBBEE study into ESD in SA last show that only 62% of participating year also showed there was a lot of entities confirmed to having ESD room to make ESD programmes imstrategies, most of which operate in pactful. the property, construction and finThe study found that sometimes beancial services sectors. “This suggests the prevalence of ad neficiaries are unready to scale up hoc approaches to implementing their businesses due to lack of strong ESD, which reduces the intended imfinancial management structures, pact of ESD as B-BBEE lever.” sound business plans and gov-
Enterprise and supplier development a foreign concept in townships Kabelo Khumalo The scramble for the township market by SA’s largest grocery and fashion retailers and other fast-moving consumer goods companies has not led to reinvestment in the township economy with corporates ignoring the plight of township enterprises. This is the view of Bheki Twala, president of the Township Economic Commission SA. He said township businesses were ignored by large corporates when they develop their enterprise and supplier development programmes (ESD). “To tell you the truth, businesses in the township don’t know what we are talking about when we mention ESD. It’s a foreign language to them, akin to talking Chinese. This is because there
22 Business Day November 2024
is nothing that corporates are doing to empower township enterprises. In essence, there is no relationship between big businesses and small businesses,” Twala said. “The only ESD programme that we had was Africanbank at Maponya Mall in Soweto. There is a big dis-
TECSA hosting Deputy Minister Jane Sithole from the Department of Small Business Development on the 10th Township Economy Summit
connect between the businesses in the township and the formalised businesses. Even government is not coming to the party. “You should remember that here in Gauteng we have the Township Economic Development Act. This act demands that 40% of government procurement must be in the township. This has not been realised, leading to further despair in the township enterprises.” The act seeks to open up new procurement and market opportunities for township businesses, and create financing facilities for townshipbased enterprises. One of the problems faced by small businesses in the township, for instance, is that individual small, medium and micro enterprises (SMMEs) in townships don’t have the means to
Business Day Enterprise Supplier Development Economy in partnership with Microsoft meet contractual obligations in terms industries. black distributors who have secured of procurement demands. The organisation lobbies the public procurement opportunities with TiSA’s largest retailer, Shoprite, worth and private sectors to increase their ger Brands. about R180bn on the JSE, is one of the levels of local procurement through The group’s ESD programme also has the market access accelerator, which dominant players in the township. their supply chain structures and enis an incubation support initiative that Financial services group Nedbank courages consumers to do so through drives the support of black-owned said Shoprite’s early inroads and changing their purchasing habits. heavy investment in the township and black women-owned enterDespite its challenges, SA’s informal “township economy” is booming, and economy, said to be worth more than prises to commercialise their busiaccording to data from Standard R700bn, has put the retail giant in a nesses and expose them to market Bank, contributes more than R300bn good position to keep growing its opportunities. to the national GDP. market share — with its competitors a The third leg of Tiger Brands’ ESD distant second. programme is the agriculture aggregDespite this contribution, players in In 2024, Shoprite’s ESD programme, ator model that increases the number the sector, including traders ranging brought a total of 301 products to of participating black small-scale from neighbourhood spaza shops to market. The group invites small local farmers participating in the Tiger food hawkers, hairdressing salons enterprises with an annual turnover Brands value chain. and larger businesses, are operating of R5m or less, and a one-of-a-kind The fourth leg of the ESD initiative is on a largely cash basis and are often product to sell, to join its supplier the channel development prounbanked. network. gramme, which aims to provide caFor years, the businesses that form SA’s largest food producer, Tiger pacity building support to emerging the backbone of commerce in townBrands, has also identified the townblack distributors to enable them to ships have operated from garages, ship economy as a key growth area. drive the distribution of Tiger Brands street-facing rooms in houses and In 2023, Tiger Brands aneven shipping containers nounced its targeted routeas they bring essential to-market strategy to ingroceries and commodcrease its brands’ presence ities to their neighbourin at least 130,000 stores in hoods, says Naledzani the general trade over the Mosomane, head of ennext five years, including terprise development at spaza and min- and midiStandard Bank SA. Deputy Preside of DSBD Jane Sithole and TECSA President Bheki wholesalers. Also lagging behind has Twala with Business leaders launching a book on Entrepreneurship Since then, the business been e-commerce, during the 10th Anniversary of the Township Economy Summit has increased its presence primarily because digitand visibility in more than ally based business-to71,000 stores, up from business suppliers have products in underserviced markets. 50,000 at the end of 2023. difficulty communicating with indeTwala said there is much more big The business expects to reach pendent traders and operating in enbusinesses can do for the township 90,000 stores by the end of 2024 and vironments where cash is used for economy, and said as long as the is well on track to cover a total of most transactions. government continues to exclude “While providing an essential service 130,000 stores over a period of five small businesses in policymaking, through outlets across townships, years. there would not be meaningful ecothese businesses face several opAs part of its expansion in the innomic growth. erational challenges. As they are formal sector, Tiger Brands offers “The government also has a duty to largely cash-based, they are vulnerbusiness solutions to mini- and midicome up with its own ESD proable from a security point of view. wholesalers and store owners, ingramme so that those SMMEs that do “Restocking shelves usually means cluding spaza stores and superettes, business with the government get closing the business and travelling to to help grow the Tiger Brands share of value. We don’t have a voice at Nedlac buy stock for cash. Operating margins the consumer basket in these outand other key structures.” are also low as these businesses do lets. Numerous measures have been taken not benefit from bulk-buying options Tiger Brands, worth about R43bn on over the years to encourage South available to formal, shopfront retailthe JSE, has ESD programmes that Africans to buy local produce to help ers.” support the development of direct SMMEs grow and enable them to Most seriously, says Mosomane, “as and indirect suppliers. create the much needed jobs. cash is still king, businesses are preThe support includes the Dipuno EnProudly South African is the country’s cluded from the benefits of the formal terprise and Supplier Development official buy local campaign which banking sector and having the finFund, a R100m fund that provides seeks to stimulate much-needed job ancial records and credit ratings that liquidity support for black-owned creation and retention in our country can make it possible to obtain loans direct and indirect suppliers, black through the lobbying for and proand expand their businesses”. smallholder farming enterprises, and motion of local goods, services and Business Day November 2024 23
We Are Building a Thriving Technology Ecosystem in South Africa
Microsoft is committed to accelerating growth and innovation for South Africa’s tech enterprises. Through our Emerging Partner Programme (EPP) and Equity Equivalent Investment Programme (EEIP), we empower local SMMEs with essential digital skills, funding opportunities, and industry-leading mentorship. The SMME development programme of the EEIP focuses on both technology and non-technology SMMEs, with the aim of supporting their scaling efforts to drive their operational and fnancial independence. The intent with the technology startups is to drive their growth as early stage businesses, while the focus for non-technology SMMEs is to use technology to drive growth through specifc projects and business processes. The technology-based SMMEs will also be encouraged to create a solution for township-based micro-businesses. Through our commitment to invest R1.3 billion, we’re enabling skills development, job creation, and economic resilience across industries. Together, we’re paving the way for an inclusive, digitally advanced South African economy.
To learn more about our various programmes, please send an email to eeipinfo@microsoft.com.