HELPING SMALL BUSINESSES TO POWER AND SCALE UP
Google’s Hustle Academy is a highly sought-after resource among small business leaders. It aims to help small businesses power up to the next level by increasing their revenue, positioning them for investment, optimising operations and building a sustainable business for the future.
The academy offers a fi ve-day virtual bootcamp for small businesses in Kenya, Nigeria and South Africa,focused on building future-proof business
success. Live training sessions, mentorship and masterclasses are presented by industry leaders and cover topics such as business strategy, business development, digital marketing, fi nancial planning and pitching your business.
Small businesses will learn about the digital landscape and how to take charge of their online presence, receive artifi cial intelligence training and be guided in adapting Google’s marketing
APPLY NOW g.co/hustleacademy
tools to their operational needs. In addition, the academy facilitates access to valuable networking by providing participants the opportunities to come together with their peers, share insights and explore examples of best practice.
Qualifying criteria include: businesses with a business plan that have defi ned their product/service offering and are looking to scale this. Businesses must have at least
two full-time employees and been operating for over 12 months.
More than 4 140 SMMEs across South Africa have graduated from the Hustle Academy’s boot camps since 2022, and they are seeing results. Around three in four participating businesses report back that they have seen signifi cant business growth within a year of taking part in Google’s programmes.
SMALL … BUT MIGHTY
South Africa’s small business sector is a force to be reckoned with. According to the Small Enterprise Development Agency, there are around 2.7 million small, medium and micro enterprises (SMMEs) currently operating, and their contribution to the country’s gross domestic product stands at around 40 per cent.
Even so, it’s not easy to be an SMME owner in South Africa. Apart from the usual challenges facing entrepreneurs, small companies are burdened by issues such as electricity cuts, a dif cult economic environment and insuf cient support from funders.
Happily, the SMME sector is holding its own in the face of these dif culties, with the Bureau of Economic Research predicting growth of 2.2 per cent this year – a twofold increase on 2024.
Several factors are driving this growth, from the effects of arti cial intelligence on ef ciency to the proliferation of new funding sources.
In this issue, we look at how SMMEs can take advantage of these innovations. We’ve also secured insight from industry experts across various elds. Their contribution creates a roadmap for the sector, helping small business owners navigate areas such as marketing, cybersecurity and environmental, social and governance.
The message is clear: it cannot be denied that SMMEs operate in a unique context, but many of the resources that have created a competitive advantage for their larger counterparts could prove just as impactful for small businesses. It’s simply a matter of application.
We hope the information in this magazine proves valuable to small business owners, facilitates their growth and nurtures resilience so that this powerhouse of a sector can ourish, creating more opportunities for sustainable employment and poverty alleviation.
Lisa Witepski
5 SMME SECTOR SNAPSHOT
Challenges, threats and opportunities facing the sector in the coming year.
6 DIGITAL MARKETING
Digital transformation solutions can drive business growth and sustainability across various sectors.
14 MARKETING
When it comes to marketing, millennial and Gen Z consumers require a different approach.
18 TOWNSHIP ECONOMY
Finding solutions for South Africa’s embattled township entrepreneurs.
19 FUNDING
With the innovations in alternative funding, banks need no longer be the rst port of call for SMME owners.
24 TECHNOLOGY
Digital micropayments are ushering in a new era for SMMEs.
25 CYBERSECURITY
Cybersecurity is one of the biggest issues facing today’s organisations –small businesses included.
26 ARTIFICIAL INTELLIGENCE
Small businesses cannot afford to overlook the opportunities presented by arti cial intelligence.
SMMES
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THE STATE OF THE
SOUTH AFRICAN SMME SECTOR
Considering the significant contribution of small, medium and micro enterprises to employment and gross domestic product in South Africa, it is vital to keep our finger on the pulse of this sector, writes BUSANI MOYO
If there is any hope that South Africa will solve its perennial unemployment challenge, the experts say that hope rests with the small, medium and micro enterprises (SMMEs) sector.
Yet, despite the general acknowledgement of this reality and the opportunities the SMME sector presents, it continues to face complex challenges. For example, SMMEs struggle with limited access to nance, regulatory red tape and an unpredictable economic climate.
York Zucchi is a Swiss-born investor and entrepreneur who chairs The StartUp Tribe, an initiative to help 100 million individuals start and grow their businesses. According to Zucchi: “Interest in entrepreneurship is growing exponentially, in terms of both the desire to start a business and entrepreneurial thinking, as the world is moving more and more towards requiring employees that need entrepreneurial attitude.” In South Africa, Zucchi’s initiative is working with the City of Cape Town, which has launched the Cape Town Entrepreneurship Academy to its 4.9 million residents. It offers world-class free practical courses to help people start and grow local businesses.
social and economic development initiatives –notes: “The SMME sector’s wellbeing is closely linked to the general health of the economy.” She adds: “A rising gross domestic product (GDP) rate and growing levels of economic activity provide a healthy environment when money is circulating freely in the economy for SMMEs to thrive, through the supply chains and in the secondary B2B market. Without healthy economic growth, as we have seen in recent years with GDP rates below 1 per cent in 2024 and a projected growth rate for 2025 of between 0.5 and 1.3 per cent, it is challenging for SMMEs to grow or create the anticipated jobs.”
While there is indeed an appetite for entrepreneurship in South Africa and worldwide, as Zucchi observes, Catherine Wijnberg, founder of Fetola – a South African nonpro t organisation that promotes job creation through sustainable,
Matt Putman, CEO of iKhokha, has some positive news regarding the state of SMMEs in South Africa. iKhokha provides a range of card machines that help business owners accept card transactions. Putman agrees with Wijnberg’s view that SMMEs today operate within a tough economy. However, he notes: “Despite the tough trading environment, average business turnover has risen in line with in ation in 2024 versus 2023.” He adds: “SMMEs have, however, felt cash ow pressure due to rising input costs.” Putman has good news though. “Despite this trend, a few sectors have seen above-in ationary growth. Three
THE STATE OF SOUTH AFRICAN
SMMES IN NUMBERS
• There are between 2.4 and 3.5 million SMMEs in South Africa. Source: www.stateofthenation.gov.za
• South African SMMEs constitute 91 per cent of formal businesses, employ 60 per cent of the labour force and account for 34 per cent of gross domestic product. Source: Banking Association South Africa
• Almost one-quarter (23 per cent) of small business owners in South Africa are foreign nationals.
Source: Finmark Trust
business segments that have fared well are home and repair, food and drink, and retail.”
THE FUTURE OF SMMEs?
Putman believes: “With in ation sitting at the low end of the South African Reserve Bank target and another 25 basis points rate cut taking effect from the beginning of February, we may be on track for a better year for SMMEs in 2025.”
Wijnberg believes the current bad blood between South Africa and the United States may hurt the future of South African SMMEs. However, she also sees an opportunity. “These changes would bring in an era of possible new growth opportunities for local companies producing replacements, the search for new export markets and a need for SMMEs to pivot into new markets and sectors.”
Zucchi argues: “If we want to tackle unemployment and embrace innovation, we must enable SMMEs much more. For example, start creating dedicated spaces for informal traders and micro businesses to set shop and thrive.”
Follow: York Zucchi @ www.linkedin.com/in/york-zucchi
Catherine Wijnberg @ www.linkedin.com/in/catherine-wijnberg-5142049
Matt Putman @ www.linkedin.com/in/matt-putman-7a982b24
York Zucchi
Matt Putman
Catherine Wijnberg
Over 75 per cent of small and medium businesses fail within their rst ve years, according to a 2024 article on sabcnews.com. Moreover, tgssouthafrica.co.za tells us that in previously disadvantaged communities, only 1 per cent of businesses grow from employing less than 5 people to having 10 or more staff members –presenting a deeper challenge in the communities where the need for new, stable small businesses is greatest.
Not only should this jolt anyone invested in our economy into action, but it should also be seen as an opportunity. By sourcing funding, broadening technological access, closing skills de cits and expanding market reach, we can address these challenges and unleash the full potential of South African small, medium and micro enterprises (SMMEs) and set them on a path to unprecedented growth and a broader online presence.
HARNESSING DIGITAL TRANSFORMATION
SMMEs are the backbone of South Africa’s economy. Not only are they mass employment drivers, but they are also innovators and engines of broader economic growth, writes KRISTY GRANT, head of B2B marketing at Google
Rising to this challenge means ensuring boardroom conversations go deeper than empty platitudes. To drive tangible change, an enabling environment where owners can thrive using technology must be built.
WHAT DO WE MEAN BY DIGITAL TRANSFORMATION?
A good example of the power of digital transformation can be found in tourism. The travel sector readily adopts new technologies to adapt to shifting consumer behaviours and economic conditions. According to Statista.com, Africa’s travel and tourism market is projected to reach R624-billion ($33-billion) by 2029, with over 70 per cent of revenue coming from online sales alone. Digital services are therefore essential for tourism growth.
President Ramaphosa’s acknowledgement during his recent State of the Nation Address that the services sector is South Africa’s largest economic contributor underscores the urgency for SMMEs to upskill and digitise. Digital marketing solutions can drive business growth and sustainability across various sectors, including travel, nance, retail, hospitality, tourism and the creative industries.
Travelstart, a South African online booking platform, faced increasing pressure as the industry evolved. It shifted its marketing from focusing on booking volume to value-based bidding. This means the company prioritised the revenue generated by each booking. Travelstart used Google’s arti cial intelligence-powered tools and templates to analyse new, historical and of ine data within the campaign console, including ight availability, Google searches and route popularity. This strategic change supported its dynamic marketing tactics
Kristy Grant
and led to a 27 per cent year-over-year revenue increase.
It’s abundantly clear, then, that digital transformation can lead directly to economic innovation, transforming not only organisations, but also entire industries so they become more ef cient, agile, cost-effective and competitive. For SMMEs, adopting digital solutions is no longer optional — it’s a necessity for long-term success in an increasingly digital economy. The simple fact is that the ability to adapt and innovate through digital transformation will determine which businesses thrive in an evolving global marketplace.
FROM CONVERSATION TO CONVERSION
Understanding that digital skills and resources can often be a barrier to digitisation, Google consistently made an effort to gather industry leaders for constructive dialogue that unlocks solutions.
Google has hosted a series of SMME workshops and bootcamps to bring business leaders up to speed with the latest tools it has made available. Because peer learning, mentoring and guest speakers drive how information is shared in these sessions, placements in initiatives such as Google’s Hustle Academy have become highly sought-after among small business leaders.
More than 4 140 SMMEs across South Africa have graduated from the Hustle Academy’s ve-day virtual bootcamps since 2022, and they are seeing results. Around three in four participating businesses report back that they have seen signi cant business growth within a year of taking part in Google’s programmes. For example, local designers, such as Inga Sebata, founder of Stitched by Inga, picked up a range of skills through the academy, and now the company is shipping to customers across borders. Sebata was also able to land her rst investor thanks to free Google tools that boosted her scaling, pitching and visibility.
Sebata’s business journey touched other founders attending the Hustle Academy workshop. This collaborative learning approach
AS THESE BUSINESSES SCALE, THEY DON’T JUST TRANSFORM THEIR OWN FUTURES; THEY UPLIFT COMMUNITIES AND CONTRIBUTE TO A THRIVING ECOSYSTEM.
demysti es the digital landscape and allows local businesses to take charge of their online presence and adapt Google’s marketing tools to their operational needs. Others, such as Colleen Flowers, founder of Colleen’s Homemade Sauces, were able to increase their sales, hiring and new clients through Google’s programmes. Just imagine the scale of growth South African SMMEs can achieve with the right partnerships and support.
Recognising that enabling black entrepreneurs and providing them with foundational support is critical to job creation and wealth generation for the future of the country, Google established the Black Founders Fund Programme.
Since its inception in 2020, the programme has awarded more than $4-million to help black-led start-ups build and grow their businesses, without the expectation of giving up equity in return. This has helped bridge funding gaps, foster economic equity and empower long-term business growth. Businesses, such as Aveade, an online marketplace with a focus on accessibility and diverse product offerings connecting buyers and sellers, have bene tted not only from the cash awarded by the fund, but also from ongoing Google mentorship, Google Cloud credits and product support to help them navigate every step of their journey to success.
Through the support and resources of the Black Founders Fund, enterprises, such as Mapha Logistics, a tech company enabling people in townships, peri-urban and rural areas with easier access to food, medicine, and other items from local sellers, have been able to continue to empower their communities and drive access to goods and services for the historically disenfranchised, all while powering their own transformation and growth.
This work is not just about supporting individual businesses; it’s about shaping a more inclusive and resilient economy. As these businesses scale, they don’t just transform their own futures; they uplift communities and contribute to a thriving ecosystem where more South Africans can participate and bene t from economic progress.
SERVICES THAT PUT OWNERS IN CONTROL
SMB workshops are just the start. For small businesses to really thrive, they need easy-to-use digital tools – simpli ed platforms for website building, social media, video and email marketing – tools that even the least tech-savvy founder can master. And for those ready to take it a step further, Google provides Google Ads, backed by Google Analytics, Digital Garage and Market Finder, to supercharge their campaigns.
Why is this so important? Because every cent counts for these businesses. Google’s tools provide the data they need to see what’s working and adjust in real-time, maximising their return on investment. The result? South African small businesses are not just surviving; they’re creating jobs, innovating and driving economic growth. Google’s tools, including Search, Maps and YouTube, helped generate a staggering R288-billion ($16-billion) in economic activity across sub-Saharan Africa in just one year. Google is committed to fuelling this growth, connecting businesses to new opportunities and building a thriving digital future for South Africa. Google is excited to continue engaging and forging partnerships that drive growth, enhance connectivity and unlock new opportunities for local businesses and workers. By fostering collaboration and innovation, it is possible to create a more inclusive, dynamic and resilient economy — one where businesses thrive, communities prosper and individuals have greater access to the tools and resources they need to succeed.
Follow: Kristy Grant @ www.linkedin.com/in/kristy-grant-01019a7a
Google’s Hustle Academy: www.blog.google/intl/en-africa/company-news/2024-hustle-academy
150+ Pathways to Success
In 2021 Amazon Web Services (AWS) South Africa launched its first YES4Youth cohort in line with AWS’ commitment to provide free cloud computing skills training to 29 million people globally by 2025.
AWS collaborates with AWS’ EEIP partners to employ youth.
Working with 16 AWS’ EEIP partners, we achieved our target of 80% absoption of the youth into permanent technical roles (Solutions Architect, Developers, Data Engineers) between 2021 and 2024.
The AWS YES Youth have achieved over 50 Foundational, over 25 Associate and more than 10 have achieved the AWS Professional Certification.
“One of the difficulties is if you don’t have a degree in [Computer Science] or any IT degree specifically, it’s difficult to get a job in a company because people are still looking for degrees.”
Jino Rigney, Cloud Engineer, Disraptor
“When I joined Disraptor, I noticed that there is a willingness on their part to have me... There’s almost like a mentorship, and I think an interest in me as a person and my growth.”
Jino Rigney, Cloud Engineer, Disraptor
“It gave me a sense of direction in my career - the whole AWS experience and the cloud. It gave me a sense of how far I can take this.”
Dylan Felkers, Cloud Engineer, Batsamayi
TRANSFORMING SOUTH AFRICA’S DIGITAL FUTURE
In the rapidly evolving landscape of South Africa’s digital economy, transformation isn’t just about technological advancement – it’s about ensuring that growth benefits all South Africans.
AMAZON WEB SERVICES is helping create pathways to opportunity in the digital economy
Amazon Web Services (AWS ZA) developed its economic transformation programme with a clear understanding: sustainable growth in South Africa requires bringing all South Africans along on the digital journey. Through strategic investments in education, small and medium enterprise development, and community initiatives, AWS is helping create pathways to opportunity in the digital economy while addressing historical inequalities.
The programme targets the entire educational and economic spectrum, from secondary school students exploring science, technology, engineering and maths (STEM) subjects for the rst time and young people pursuing tertiary education to black-owned small and medium enterprises (SMEs) and the professionals employed within those companies.
At its core, the programme aims to realise the transformative value of cloud technology for all South Africans, aligning with the country’s Broad-based Black Economic Empowerment (B-BBEE) framework to expand access to quality education and economic opportunities.
DRIVING ECONOMIC INCLUSION THROUGH TECHNOLOGY LEADERSHIP
In the heart of Cape Town’s tech hub, a digital revolution is taking shape. AWS ZA Services is not just building data centres;
it’s building futures. Through a R365-million investment commitment to South Africa’s digital transformation, AWS has created over over 200 (as at 2023) jobs, supported 36 black-owned businesses and achieved remarkable progress in developing the country’s tech ecosystem.
“We understood that if we wanted to grow in South Africa, we needed to help bring all South Africans along on the journey with us,” says Chris Erasmus, AWS ZA country manager. “Our commitment goes beyond infrastructure – we’re investing in people, businesses and communities.”
“WE UNDERSTOOD THAT IF WE WANTED TO GROW IN SOUTH AFRICA, WE NEEDED TO HELP BRING ALL SOUTH AFRICANS ALONG
The AWS Equity Equivalent Investment Programme Awards 2024
TRANSFORMING BUSINESS THROUGH PARTNERSHIP
At the core of AWS’ transformation strategy lies its groundbreaking Equity Equivalent Investment Programme (EEIP). This innovative initiative isn’t just about investment; it’s about creating sustainable business growth in South Africa’s tech sector. Through comprehensive support, including technical training, business development resources and access to AWS’ global infrastructure, the programme empowers 100 per cent black-owned SMEs to become part of the global AWS Partner Network, a community of over 130 000 partners worldwide.
The impact is remarkable. EEIP partners have achieved 1 223 AWS accreditations and 537 AWS certi cations, demonstrating the programme’s success in building technical expertise within South Africa’s digital economy. More impressively, 64 per cent of the 444 new jobs created are technical roles, such as software developers, solution architects and data engineers, with 39 per cent of all positions lled by black females.
EEIP impact highlights
• 36 black-owned businesses supported.
• 444 new jobs created.
• 282 technical roles developed.
• 39 per cent of positions filled by black females.
• 1 223 AWS accreditations.
• 537 AWS certifications.
“Our EEIP Programme identi es and builds SMEs trying to nd their space in the market,” explains Nondumiso Zibi, director of AWS support engineering EMEA. “We work with them to develop skills and create jobs that impact their communities. Our goal is to create a partner network and to scale with them.”
Success stories such as CloudZA demonstrate the programme’s transformative power. Starting with just two employees in 2021, this South African consultancy has grown to employ 21 people and expanded operations into Nigeria and Ghana. “The most valuable bene ts have been accessing AWS technical resources, support with certi cations and co-selling opportunities,” says Jonathan Oaker, CEO and founder of CloudZA. “Our ability to provide advanced AWS services has opened doors and proved we can deliver solutions
to customers.” The company has seen over 300 per cent year-on-year growth since joining the EEIP in 2021, exemplifying how AWS’ support can catalyse business expansion across Africa.
Looking ahead, AWS’ ownership initiatives continue to expand, creating new opportunities for black-owned businesses to participate in South Africa’s growing digital economy.
The programme’s success demonstrates how strategic investment in local talent and
“OUR EEIP PROGRAMME IDENTIFIES AND BUILDS SMES TRYING TO FIND THEIR SPACE IN THE MARKET.”
– NONDUMISO ZIBI
businesses can drive meaningful economic transformation while building a more inclusive digital future for all South Africans.
FROM YOUTH POTENTIAL TO TECHNOLOGY PROFESSIONALS
The Youth Employment Service (YES) Programme is a vital component of AWS’ commitment to economic transformation, addressing one of South Africa’s most pressing challenges – youth unemployment. According to Statistics South Africa’s Quarterly Labour Force Survey (Q4:2024), 44.6 per cent of young people aged 15–34 are unemployed, highlighting the urgent need for intervention.
“The YES Programme isn’t just about providing jobs – it’s about creating sustainable careers in technology. We’re building a pipeline of talent that will drive South Africa’s digital economy forward,” says Nomzamo Xaba, AWS’ B-BBEE programme leader.
The AWS YES Programme strategically matches unemployed black youth with enterprises in AWS’ EEIP network, creating a symbiotic relationship that bene ts both emerging businesses and young talent. This innovative approach has provided 128 participants with 12–24 months of workplace experience, combining practical
AWS Partner Summit Johannesburg
The Youth Employment Service Programme
training with real-world project exposure. Through strategic partnerships with EEIP companies, YES participants gain invaluable experience in cloud computing while contributing to the growth of black-owned technology businesses. The programme provides holistic development through hands-on experience with AWS technologies, professional mentorship and exposure to real client projects. This investment in young talent strengthens not only individual careers, but also contributes to building a more inclusive and technically skilled workforce for South Africa’s digital economy.
CULTIVATING SOUTH AFRICA’S NEXT GENERATION OF TECH LEADERS
AWS’ commitment to transformation extends beyond immediate employment to building a sustainable pipeline of tech talent in South Africa. Through strategic investments in education and skills development, AWS is helping shape the future of South Africa’s digital workforce.
The AWS Skills Development Bursary Programme has become a key contributor to educational transformation in South Africa. Since 2018, AWS has awarded 946 STEM bursaries to promising students across the country’s leading universities with 46 per cent of recipients being female scholars. This gender balance is particularly signi cant in a eld traditionally dominated by male students.
“Other than the nancial support, I appreciate the programme’s prioritisation of my emotional and mental wellbeing. AWS has provided me with a supportive structure to study and grow,” says Andiswa Dlongolo, AWS Skills Development Bursary recipient.
The programme’s impact extends beyond nancial support. Each bursary recipient bene ts from a comprehensive support system, including mentorship and study skills development, ensuring students not only enrol, but also complete their studies. This holistic approach has proven particularly effective in supporting students from historically disadvantaged backgrounds.
This supportive approach continues as students transition from their studies into the workplace through AWS’ carefully designed internship programme. To date, 72 graduates have completed internships lasting 6–12 months with an impressive 80 per cent retention rate into full-time employment. These internships provide the crucial link between academic knowledge and practical workplace experience,
Skills Development Impact:
• 1 120 STEM bursaries awarded since 2018.
• 46 per cent female bursary recipients (49 per cent in 2024).
• 72 internships completed
• 78 per cent internship-to-employment conversion rate.
• 25 per cent of annual skills budget allocated to STEM teacher training.
enabling graduates to apply their skills in real-world technology environments.
SECURING THE FUTURE OF STEM EDUCATION
Understanding that sustainable transformation requires intervention at all levels of education, AWS has expanded its focus to include educator development. In 2023, AWS allocated 25 per cent of its annual skills development budget towards funding STEM teacher training. This strategic investment ensures the next generation of students receives quality STEM education from well-equipped educators, creating a continuous pipeline of tech talent for South Africa’s digital economy.
This comprehensive approach, from supporting STEM teachers to providing university bursaries and creating internship opportunities, demonstrates AWS’ commitment to building a sustainable framework for technology skills development in South Africa.
BUILDING A SUSTAINABLE TECH BUSINESS ECOSYSTEM
While AWS’ Equity Equivalent Investment Programme focuses on developing black-owned AWS Partner Network members, the Enterprise and Supplier Development (ESD) Programme takes a
different approach. The ESD Programme speci cally targets black-owned SMEs to become competitive suppliers to AWS and other businesses in South Africa’s growing technology sector.
The ESD Programme provides black-owned SMEs with comprehensive business development support, technical training and opportunities to participate in AWS’ supply chain. This holistic approach ensures that participating businesses develop the technical capabilities and operational resilience needed for long-term success.
“The ESD Programme helped with basic nancial support to navigate through the pandemic, supporting us operationally (for example, retaining staff), and to remain invested in continuing the business,” says Jacques Groenewald, founder of ONE39 Central.
ONE39 Central exempli es the transformative impact of the ESD Programme. The company successfully navigated the challenges of the COVID-19 pandemic and emerged stronger, launching a new in-house printing division. Today, ONE39 Central is a key supplier to the AWS South Africa marketing team and is rmly part of the AWS ecosystem.
Another success story is Synergy Transformation Solutions, a B-BBEE Level 1, 100 per cent black-owned, 31 per cent black-female-owned skills development company. “Participating in the ESD Programme has had a transformative impact on our business. Our ability to implement initiatives such as the AWS re/Start Programme has positioned us as a leader in the ICT sector, further solidifying our reputation as a partner of choice. The programme fuelled our growth, allowing us to serve our community better, create employment opportunities and continue a path of sustainable success,” shares Jerann Naidu, Synergy Transformation Solutions’ managing director.
Through the ESD Programme, AWS is helping create a more inclusive and diverse supplier network in South Africa’s technology sector.
AWS’ Equity Equivalent Investment Program
AWS Skills Centre Cape Town
By supporting black-owned SMEs with focused business development resources and market access opportunities, AWS is contributing to the development of a robust and sustainable business ecosystem.
NURTURING FUTURE TECH TALENT THROUGH EARLY EDUCATION
AWS’ commitment to transformation begins at the grassroots level through its agship socioeconomic development initiative – the AWS Amafu Programme. Working in partnership with LEAP Science and Maths Schools, AWS is helping bridge the digital divide by bringing cloud computing education to learners in under-resourced communities.
The word “Amafu” means “clouds” in isiZulu, symbolising the programme’s mission to make cloud technology accessible to all South African youth. Since 2021, AWS has equipped LEAP schools with fully functional computer labs, bene tting approximately 2 000 learners with access to essential STEM resources and facilities.
“Through our partnership with AWS South Africa, LEAP provides not only cloud and arti cial intelligence training to learners, but also offers an academic and career trajectory through bursaries and jobs. During my nine years with the LEAP Science and Math Schools, I’ve seen how it empowers not just students, but also entire communities. We run programmes to help students unlearn harmful behaviours they encounter in their communities. Many of the areas we serve are affected by high levels of crime, drug addiction and gang violence. Some students come to us already involved in such activities, but with the support they receive at LEAP, many turn their lives around,” says Jeremiah Mubaiwa, IT manager at LEAP School.
The impact of the AWS Amafu Programme extends beyond providing hardware. The programme introduces Grade 10–11 learners to foundational cloud and machine learning
AWS Amafu Programme impact:
• Approximately 2 000 learners benefitted.
• Eight LEAP schools supported.
• Fully functional computer labs established.
• 37 learners awarded AWS bursaries.
• Access to AWS Academy learning platforms.
THE AWS AMAFU PROGRAMME REPRESENTS MORE THAN JUST AN INVESTMENT IN INFRASTRUCTURE; IT’S AN INVESTMENT IN SOUTH AFRICA’S FUTURE TECHNOLOGY LEADERS.
concepts, opening their minds to future careers in technology. This early exposure to cloud computing has already shown promising results: since the programme’s inception, 37 LEAP learners have received AWS South Africa bursaries for tertiary education – 3 in 2022, 10 in 2023 and 24 in 2024.
AWS’ annual Career Days complement the Amafu Programme, bringing together AWS employees, partners and university representatives to showcase career opportunities in the ICT sector. These events create a bridge between secondary education and higher learning, helping learners envision and plan their futures in technology.
The AWS Amafu Programme represents more than just an investment in infrastructure; it’s an investment in South Africa’s future technology leaders. By providing resources, education and inspiration at the secondary school level, AWS is helping create a sustainable pipeline of tech talent from previously underserved communities.
MEASURING IMPACT, PLANNING FUTURE GROWTH
As AWS prepares to release its comprehensive Transformation Economic Impact Report in 2025, the numbers tell only part of the story. Behind every statistic – whether the 444 jobs created through the EEIP Programme, the 946 STEM bursaries awarded or the 2 000 learners bene tting from the Amafu Programme – are real South Africans whose lives and communities are being transformed.
Looking ahead, AWS remains committed to deepening its investment in South Africa’s digital transformation. The recently opened AWS Skills Centre in Cape Town, the rst
outside the United States, demonstrates this ongoing commitment. By offering free cloud computing training to the public, the centre represents AWS’ vision for the future: a South Africa where technical skills and digital opportunities are accessible to all. Through continued partnerships with government, educational institutions and the private sector, AWS is working to create a more inclusive digital economy – one where South African talent and innovation can thrive in the global technology landscape.
https://aws.amazon.com https://aws.amazon.com/partners/eeip
Amafu Career Days with LEAP School
Career Day
With millennial and Gen Z markets increasing their spending power, it makes sense for small, medium and micro enterprises (SMMEs) to target these potentially lucrative consumers.
However, tactics and techniques that worked for older cohorts may not prove quite as effective among these younger purchasers, who have grown up in a vastly different world to Gen Xers and Boomers. Millennials (born between 1981 and 1996) were born into a nondigital environment and saw online activities increasingly gaining prominence from 2000. Gen Zers only know a digital world, which has shaped everything from their purchasing decisions to their values.
CHANGING WORLD
For many years, Peter Drucker’s 4Ps of marketing theory has been considered the gold standard for anyone considering how to reach their desired market. But now, the original product, price, place and promotion have been supplemented by a fth ‘P’ – purpose.
HITTING THE TARGET
A guide for small, medium and micro enterprises marketing to millennial and Gen Z consumers. By JOSEPH KAPALA , head of e-commerce and digital transformation at Enterprises University of Pretoria
This means older marketing models are all but obsolete. In our business, how we reach people has changed. As a training institute, we target predominantly 18–35 year olds, who account for 57 per cent of our market. This group does not browse newspapers or listen to the radio for information, but spends most of their time online – where we need to meet them.
This is great news for SMMEs unlikely to have the large marketing spend to establish a presence across traditional media. Instead, they can set up a website, preferably optimised for mobile use so that it is easy to use and downloads quickly, as this is how younger consumers access the internet.
Social media also provides an effective means of capturing this market’s attention –ampli ed when hashtags are used.
INFLUENCERS AND COMMUNITIES
In uencer marketing is another useful tool for small businesses. Large companies use celebrity endorsements to gain prominence or enhance their image; a successful approach for brands, from retailers to luxury jewellers. Costs make this off-limits for small businesses; however, they can still harness the principles of this approach. Joining forces with social media in uencers – even micro- or nano-in uencers – can be enormously impactful, helping create awareness directly among the target market. Imagine a kitchenware brand, for example, that collaborates with a chef whose reels appear on TikTok – a following of just 1 000 people gets the brand known, especially if these people have an active interest in the sphere. Plus, a signi cant payment to get the in uencer on board is seldom required.
Social media can also be leveraged to create communities. Facebook groups, WhatsApp groups and the like create a platform for immediate communication. For example, a consumer enquiring about your product or service can get in touch and receive a reply within minutes, thereby forging an emotional connection.
Cause marketing should also be in the SMME marketing arsenal. Supporting a cause, such as
Joseph Kapala
SUPPORTING A CAUSE, SUCH AS EDUCATION OR MENTAL HEALTH, CAN HELP SMMES GAIN A COMPETITIVE EDGE OVER LARGE COMPANIES WITH BIGGER MARKETING BUDGETS.
Understanding Gen Z and Millennials
As digital natives, Gen Z is reshaping the socioeconomic landscape in South Africa. With their strong presence in the population and unique social media habits, brands need to adapt to meet their expectations for connectivity and inclusivity.
There is a large difference in how and where these markets make their purchases, too. Gen Zers are easily in uenced by peer recommendations, aesthetics and TikTok trends, taking these into account when purchasing. This means they are less likely to be brand loyal; instead, they want to try anything new and exciting. This contrasts with the established brand loyalty of millennials, who tend to stick to a speci c brand once it has won their trust.
Meanwhile, Gen Z enjoys social commerce – they won’t hesitate to buy a product they see and like on TikTok. They often use their phones to purchase, scan QR codes, interact with chatbots or send Direct Messages. Millennials are more inclined towards traditional e-commerce, using platforms such as Amazon or Takealot. While they may invest time in desktop research, they usually reach for their mobiles to make a purchase, often on an app. Finally, while Gen Zers are responsive to companies displaying social responsibility, boycotting businesses not aligned with their values, this is lower on the list for millennials, who usually care more about work/life balance and wellness.
of Millennials reside in Gauteng, with 35.8% in Mpumalanga, 35.5% in Western Cape and 35.5% in KZN.
of South Africans prefer WhatsApp for their social media interactions, followed closely by Facebook at 88.4%, TikTok at 73.6%, Instagram at 71.8% and Facebook at 67.4%.
is the average daily time South African users spend on social media, exceeding the global average of 2 hours and 23 minutes.
LEVERAGE FLEXIBILITY
of Gen Z in South Africa want brands to help improve lives and 77% are wiling to spend more on inclusive brands.
Source: researchgate.net; statssa.gov.za; meltwater.com; wearehuman8.com
education or mental health, can help SMMEs gain a competitive edge over large companies with bigger marketing budgets. Consumers often rally behind brands that show concern and care for them, too.
READING MINDSETS
Millennials tend to think very differently than Gen Zers. For instance, since many Gen Zers were born around the time of the 2008 nancial market crash, frugality was part of their upbringing, an entrenched habit that manifests as budget consciousness. SMMEs can appeal to this by offering Buy Now, Pay Later
schemes. For example, Enterprises UP makes it possible for potential students unable to pay for a course upfront to apply for funding from a variety of sources.
Millennials are more focused on quality, which for them trumps quantity. This cohort – now in their 40s – has reached a life stage characterised by more stability. Their interests, re ected in their purchasing choices, are generally related to family, tness, home ownership, premium fashion and experiences. This differs from Gen X audiences, whose purchases are strongly biased towards technology, gadgets and gaming.
SMMEs must leverage their greatest attribute – exibility and nimbleness – in all marketing activities. Take Google compared to OpenAI, for example. If Google issues a press release, it passes through several gatekeepers before publication to ensure it is in keeping with the brand’s positioning. With OpenAI, which has far fewer structures, it’s not uncommon for communication to come directly from CEO Sam Altman. Altman has been known to apologise for errors as soon as they come to his attention, posting his statement on social media. Again, this differs vastly from the moribund system of approvals followed by large organisations, which has nancial implications and the potential for reputational damage. While SMMEs may not be able to compete with large, established businesses in terms of budget, they can gain a competitive edge by using their resources wisely and playing to their advantage in terms of size and exibility.
Gen Z constitute 46% of South Africa’s total population, showcasing their significant impact on society.
BUILDINGA THRIVING TOWNSHIP ECONOMY
South Africa’s townships boast vibrant economies, supported by businesses as varied as sneaker washes, restaurants and spaza shops. How can these businesses overcome their challenges to thrive, asks LISA WITEPSKI
Entrepreneurship is alive and well in South Africa’s townships. However, while worldwide, business owners are charmed by the notion of creating a start-up in the mould of Uber or Airbnb, which grants them both renown and wealth, entrepreneurship here is about survival. “South Africa’s high unemployment rate means people are driven to nd a way to feed their families,” says Nkosinathi Mahlangu, youth employment portfolio head at Momentum Group.
This compelling incentive has resulted in an informal economy valued at R900-billion, which Bulelani Balabala of the Township Entrepreneurs Alliance maintains is even larger – and has room to grow as the townships’ increasing population seeks new trade opportunities.
The ability to nd potential for earning income has resulted in a highly diverse business landscape, ranging from nail bars created as “side hustles” to hairdressers,
affordable energy solutions, is one such example. This is important because, as Nonjabulo Sokhela of Nepoworx (one of the fund’s implementation partners) says: “More businesses are turning to alternative energy, but affordability remains a challenge.”
A further example of capacitating township entrepreneurs is the Delicious Festival Trader Academy, powered by the FoodBev SETA. This intervention provides training for owners of businesses focused on areas such as digital marketing, compliance and emotional intelligence.
Such initiatives are invaluable, as Mahlangu notes that a lack of acumen – which translates into a failure to, for example, compile a business plan or implement systems – is one of the key reasons township businesses are short-lived. However, they are increasingly facing another threat from large retail brands moving into their space. “Entities, such as spaza shops, cannot compete against established retailers,” he points out.
partnerships tackling the challenges entrepreneurs face.
Balabala says entrepreneurs also have to work to make their businesses sustainable. “They should start by getting to know the customer. We work with an entrepreneur who had a turnover of R550 000 from making kota. He established other product lines and even worked with corporates wanting to stage events with a township feel. The message is clear: don’t limit yourself. Many people have moved out of the townships, but remain nostalgic for its products and services. They may not be able to access these products easily, so nd a way to bring the product to them.” Tourists represent another market. “Focus on looking beyond your obvious audience,” he advises.
He believes government has a role to play. “There’s a demand for the services provided by these businesses, so government should be asking how it can ignite the sector –perhaps by introducing regulation. We must nd ways to support the township economy because it could become a major contributor to the overall economy and the tax base.”
He’d also like to see more private-public
He is less concerned about the entry of large brands into townships. “Many corporates don’t understand the nuances of this market, which is often rooted in loyalty and community. You can’t expect to do well if you offer a second-rate service, it must be on par with what customers would experience in Sandton.”
Follow: Bulelani Balabala @ www.linkedin.com/in/bulelani-balabala-74a04b1b Nkosinathi Mahlungu @ www.linkedin.com/in/nkosinathi-mahlangu-44aa3b62
Bulelanu Balabala
Nkosinathi Mahlangu
INNOVATIONS IN ALTERNATIVE FUNDING
Open-minded, tech-driven solutions will have a real impact on small, medium and micro enterprises and our economy. By JOSHUA KADISH , co-founder, director and CEO at Sourcefin
Traditional lending solutions for small, medium and micro enterprises (SMMEs) tend to be largely retrospective. Some of the most impactful innovations in nancing are those that are future-focused and prioritise digital automation to drive ef ciencies, nancial inclusion, risk management and support across the value chain.
EXPLORING ALTERNATIVE OPTIONS
Various alternative lending solutions exist for SMMEs, but many business owners struggle to navigate their options. The key is to choose future-focused, digitised funding models that consider growth potential rather than just nancial history.
One such model is revenue-based nancing, where SMMEs receive capital in exchange for a percentage of their future earnings. This option is becoming increasingly popular because it aligns the lender’s success with the business’s performance. Similarly, merchant cash advances provide funding through point-of-sale transactions, allowing businesses to access capital upfront and repay it gradually through a percentage of each transaction.
For businesses requiring large amounts of capital to ful l tenders or contracts, purchase order funding is a valuable solution. This model ensures suppliers are paid upfront, alleviating nancial constraints caused by cash ow shortages or insuf cient inventory. Ideally, this funding should be structured so repayment occurs only once the client has settled the order, allowing the SMME to reinvest pro ts into business expansion.
ntech space is embedded nance, which integrates nancial services, such as lending, payments and insurance, into non nancial platforms. In the retail sector, Buy Now, Pay Later models are gaining traction, allowing consumers and businesses to access goods and services without immediate nancial strain.
Another forward-focused option is invoice discounting, which unlocks funding based on outstanding invoices. Businesses often face payment cycles of 30, 60 or 90 days, which can put pressure on cash ow. Invoice discounting allows SMMEs to access a percentage of the invoice value upfront with repayment structured around incoming payments. Interest is typically charged on the capital outlay, but terms vary depending on the lender and the business’s nancial needs.
OPPORTUNITIES IN TECH
Technology is transforming the nancing landscape, allowing lenders to make smarter, data-driven decisions. While arti cial intelligence, big data, machine learning, blockchain and decentralised nance are being used globally to improve lending processes, South Africa faces regulatory and digital access challenges that limit the full adoption of these innovations. However, ntech solutions are unlocking new opportunities for SMME nancing by improving credit assessment, risk mitigation and fund distribution. Automated decision-making speeds up approval times, reducing the reliance on traditional collateral-based lending models. In some cases, technology enables collateral-free loans, providing greater accessibility for businesses without substantial assets. An exciting innovation in the
Follow: Joshua Kadish @ www.linkedin.com/in/joshua-kadish-3a44aab5
Beyond retail, embedded nance offers sector-speci c funding solutions tailored to industries such as agriculture, manufacturing, and logistics. These solutions could transform access by providing funding at the exact point of need, reducing delays and improving cash ow management.
LEVERAGING EMBEDDED FINANCE FOR PUBLIC-PRIVATE COLLABORATION
Despite an estimated R300-billion funding gap, SMMEs contribute approximately 40 per cent of the country’s gross domestic product and employ about half the workforce. However, they face huge hurdles in accessing nance. Innovations in lending, like those mentioned above, are only innovative if they enable small business owners by providing for future opportunities and support capital injection through ongoing engagement and a commitment to business growth beyond service delivery.
SMMEs are turned away from traditional nancial institutions because they do not have the nancial history, security or track record required to take out a formal loan and therefore carry heightened risk. Innovative alternative lenders, such as Source n, are willing to look at the future of that small business, taking on the risk with the optimistic mindset that if the SMME is supported across the full value chain, it will not only deliver on its service, but also ourish as a business and grow the economy in return.
As nontraditional lenders seek more innovative ways to address the needs of SMMEs, innovation in ntech must work alongside traditional nancial and government institutions. The aim should be to provide solutions that support SMMEs in their growth with open-minded, tech- rst products that ef ciently address current and future needs.
Joshua Kadish
South Africa’s informal and micro retail sector, conservatively estimated to be worth around R900-billion, has traditionally been underserved by mainstream nancial services. That picture is changing fast, however, as innovative ntech companies reach this market with exible digital payment solutions that empower traders to thrive in a digitised world.
Informal merchants are bene tting from digital tools that not only allow them to accept card payments, but also manage stock, pay suppliers instantly and drive higher levels of customer engagement.
This ability to accept card payments is a boon for smaller merchants, helping them increase sales and decrease their reliance on cash. Not only does it reduce the costs and risks associated with managing cash, but it also serves as a stepping stone to formalising their businesses and offers them the ability to increase customer value.
Card acceptance in the informal market is a powerful way to drive nancial inclusion for informal merchants and their customers alike. This creates a pathway for growth for smaller merchants, which, in turn, is essential for the country’s economic growth long term.
BOOSTING SALES AND FINANCIAL INCLUSION FOR INFORMAL BUSINESSES
Today’s digital tools for micro merchants enable them to access features and functionality that were once too expensive. These solutions are designed to be simple, convenient and inexpensive yet powerful enough to support businesses as they grow.
Kazang, for example, offers an integrated solution, including card payment acceptance, value-added services and supplier payments. The terminal turns traders into one-stop shops where customers can purchase prepaid electricity, airtime, data and gaming vouchers, do daily shopping, pay bills and withdraw cash. By enabling merchants to
FROM CASH TO CARD
Digital
micropayments are changing the landscape for South African small, medium and micro enterprises, shares JONATHAN THOMSON , head of merchant products at Kazang
sell digital products, such as airtime and prepaid electricity, Kazang helps them increase sales and customer loyalty. This offers an incredible opportunity for micro merchants to generate footfall and diversify their revenue streams by selling virtual products.
Kazang has integrated its platform with FMCG suppliers’ business systems to facilitate smooth digital payment ows. One of the key bene ts of moving towards card and digital payments is that micro merchants can reduce some of the expenses and security issues associated with cash. Not only will they see the cash paid into their businesses decrease with the increase of card and digital payments, but they can also pay suppliers instantly from their digital wallet.
Another advantage of integrated point-of-sale solutions is that they provide accurate digital records of sales, inventory and cash ow – all from a single device. This is an essential step towards formalising the informal sector and improving smaller merchants’ access to critical nancial services such as loans and insurance.
THE FUTURE OF DIGITAL PAYMENTS IN THE MICRO-MERCHANT MARKET
The impact of digital payments in South Africa’s informal retail sector is just beginning to be fully realised. In future, ntechs will expand the range of digital solutions for merchants, enabling them to offer richer services and accept more diverse payment options.
In future, every micro-merchant shop will likely be equipped with a digital payment terminal, just like a formal retailer. This widespread adoption will drive the digitalisation of the economy and create opportunities for nancial inclusion at every level.
Other developments are likely to include the acceptance of new payment options such as mobile money and instant account-to-account payments with PayShap. Small, medium and micro enterprises can expect terminals to evolve to include functionality, such as stock management and rewards, which will help them grow their businesses.
The digital payments revolution is just starting in the informal sector. However, digitalisation of payments can be expected to reshape the informal sector over the next few years rapidly. There is an enormous opportunity for ntech companies to drive ef ciencies and growth for micro merchants in this sector.
Kazang is a subsidiary of JSE-listed fintech company Lesaka Technologies.
Follow: Jonathan Thomson @ www.linkedin.com/in/ jonathan-thomson-7b5757134
Jonathan Thomson
Cyberthreats are evolving at an unprecedented pace. However, many small and medium enterprises (SMEs) often overlook cybersecurity under the misconception that their size makes them insigni cant to attackers or that robust cybersecurity measures are too costly. This can make SMEs more vulnerable, as cybercriminals increasingly exploit businesses with weaker defences. According to IBM’s 2023 Cost of Data Breach Report, the average cost of a data breach amounted to over $3-million for businesses with fewer than 500 employees.
As the global technology landscape evolves, the tools and techniques malicious actors use to steal sensitive data and disrupt business operations are becoming more sophisticated. As such, businesses of all sizes and across all industries cannot afford to ignore cyber threats. SMEs face the same cyber risks as larger enterprises, but often lack the resources to effectively defend themselves, making them more attractive to cybercriminals because they’re seen as “softer targets”.
MITIGATING CYBER RISK
LUKHANYO ZAHELA , acting managing executive of cloud hosting and security at Vodacom Business, shares why safeguarding your business against cyberthreats is a critical cog in your business’s survival
THE BENEFITS OF INVESTING IN CYBERSECURITY INCLUDE
CUSTOMER
AND MINIMISING POTENTIAL DOWNTIME AFTER AN ATTACK.
Interpol’s African Cyberthreat Assessment Report for 2024 cited cat shing, business email compromise, botnets, phishing, ransomware and online and sextortion scams as some of the most signi cant threats affecting businesses and individuals across Africa. But attacks aren’t only coming from the outside. Often, cyber incidents are caused by employee negligence and error. Cybercriminals are also known to exploit weaker links across a business’s supply chain.
BARRIERS, THREATS AND COST IMPLICATIONS
Small businesses often lack the budget for sophisticated cybersecurity solutions, hiring dedicated cybersecurity teams or providing regular training for employees. Additionally, small business owners and entrepreneurs typically juggle multiple roles, leaving them with little time to update security protocols or stay current with industry regulations and compliance standards such as PoPIA.
If SMEs weigh up the cost of an attack versus the cost of prevention, they’ll typically nd that being proactive about cybersecurity is a good nancial decision. The bene ts of investing in cybersecurity include improving customer loyalty and minimising potential downtime after an attack. A cybersecurity strategy also protects businesses from the legal penalties and nes that come with noncompliance.
SOLUTIONS
Vodacom Business has a range of cybersecurity solutions that effectively meet the needs of
Follow: Lukhanyo Zahela @ www.linkedin.com/in/lukhanyo-zahela-85aa91114
SMEs. These include managed security services to provide SMEs with end-to-end security solutions, from risk assessments and threat detection to rapid response to mitigate potential breaches before they cause damage.
As email remains one of the most common attack vectors for cybercriminals, Vodacom Business provides a fully outsourced email content ltering service that protects both inbound and outbound mail.
Human error is another cybersecurity vulnerability, with employees often unknowingly clicking on malicious links or downloading harmful attachments. To combat this, Vodacom Business offers cyber-awareness training, equipping business owners and employees with the knowledge and skills to identify and respond to cyber threats effectively.
A strong cybersecurity strategy isn’t complete without secure network access. Vodacom Business provides secure connectivity solutions, including VPN and SD-WAN services, ensuring businesses can securely connect to their networks from anywhere. The mobile and endpoint security solutions detect and prevent malware, ransomware and phishing attempts, ensuring that businesses can operate securely across all their devices. All solutions are as user-friendly as possible, with simple setup and management processes as well as expert
Lukhanyo Zahela
HOW AI CAN SHAPE SMALL BUSINESSES
With the fourth industrial revolution in full swing, many small business owners are asking: what can AI do for me? THANDO PATO speaks with the experts
Arti cial intelligence (AI) is no longer a prediction for the future; it exists right now. The introduction of Silicon Valley start-up OpenAI’s ChatGPT in 2022 brought AI to the world’s attention through open-source large language models (LLMs), garnering millions of global users across markets in their personal and professional capacities.
ChatGPT has been credited for fast-tracking the AI revolution and driving a development race among tech giants Google, Amazon, Microsoft, Meta, Apple and xAI.
The recent launch of the Chinese-owned AI app DeepSeek, also an open-source LLM, crashed United States’ tech stock prices and intensi ed the development race. With the rapid development of AI technology and its increased adoption by large corporates, what are the opportunities for small, medium and micro enterprises (SMMEs)?
GENERATIVE AI VERSUS BUSINESS AI
LLMs, such as ChatGPT and DeepSeek, are known as generative AI models and are designed to help with content creation, research and more by generating human-like text responses based on patterns learned from large datasets.
Business AI, which is targeted towards commercial enterprises, works differently, explains Dumisani Moyo, marketing director of SAP Africa. “Business AI uses both internal business and operational data, as well as public data. However, it is purpose-built to address speci c business challenges while enhancing operational ef ciency. It mostly relies on structured data from internal and external business systems.”
Moyo says internal business and operational data includes nancial records, sales transactions, HR data, supply chain data and customer interactions, usually found in internal systems. External public data, meanwhile, include market trends, industry reports, social media analytics and economic indicators – generally, data that is available on the internet.
AI MISCONCEPTIONS
“In South Africa and across Africa, AI adoption among many SMME owners is hindered by misconceptions, which extends beyond AI to technology in general,” says Moyo. “These misconceptions are often a result of a lack of understanding of the practical bene ts of technology and the fear of the complexity of programmes and products and the perceived high costs. This further discourages business owners from fully embracing digital transformation and unlocking potential innovation and growth.”
He adds that the most common misconceptions surrounding AI include the belief that it is only for corporations, requires deep technical expertise and is a once-off investment.
These assumptions are all incorrect, Moyo informs. “AI adoption is transforming industries across the board. SMMEs can secure competitive advantages as their larger counterparts have done. As AI continues to evolve, it’s evident that it’s no longer a ‘nice-to-have’ – it is a vital tool for sustainable growth and a powerful driver of competitive advantage in South Africa’s fast-evolving digital marketplace,” he explains.
The benefits: AI across industries
“The bene ts of AI for SMMEs are unlimited, whether they are B2B or B2C. As the technology advances, business owners cannot afford not to adopt AI into their businesses,” says Professor Manoj Chiba, associate professor at the Gordon Institute for Business (GIBS) and partner at The Strategists.
The biggest technological trend of 2025 is cloud services – a game-changer for SMMEs, says Chiba. ”Cloud services now offer AI microservices used by tech giants, such as Microsoft and Amazon, at a fraction of the cost.”
Chiba says AI can provide SMMEs across various industries with signi cant value in key operational areas. These include client and customer engagement, marketing (where AI offers data-driven insights to tailor communications and monitor sentiment), automated and streamlined business processes and advanced data analytics. AI can also generate insights on shifting trends, demographics and industry reports, helping businesses improve ef ciency, enhance risk management and accelerate growth.
“THE MOST COMMON MISCONCEPTIONS SURROUNDING AI INCLUDE THE BELIEF THAT IT IS ONLY FOR CORPORATIONS, REQUIRES DEEP TECHNICAL EXPERTISE AND IS A ONCE-OFF INVESTMENT.” – DUMISANI MOYO
Dumisani Moyo
Professor Manoj Chiba
“AI HAS THE POWER TO LEVEL THE PLAYING FIELD FOR SMMES, GIVING THEM ACCESS TO THE KIND OF FINANCIAL TOOLS PREVIOUSLY ONLY AVAILABLE TO LARGER CORPORATIONS.” – ANDREW MAREN
“As an SMME owner, you often wear many hats. Now, you can reduce your load by assigning tasks, such as answering your emails or running reports, to AI so you can focus on more strategic endeavours,” he explains.
For consumer-facing SMMEs, introducing AI-empowered tools like chatbots to manage a business’s WhatsApp line can transform customer engagement. Chiba elaborates: “By using AI tools, you can service your customer twenty-four hours a day, seven days a week, at a very low cost. This kind of tool allows you to maintain constant communication with your customers. If you have a salesperson or customer representative working from nine to ve, the AI bot will assist them after hours and also help narrow down customer queries so when they come back online, they can address outstanding queries quickly and ef ciently.”
In the manufacturing sector, which relies heavily on machinery, AI-empowered software is often used to predict and monitor machine maintenance. Moyo says, in the agricultural industry, emerging farmers can leverage AI-powered tools to analyse soil conditions, weather patterns and pest control, leading to higher crop yields.
“In supply chain management, AI can help optimise operations by predicting demand, ef ciently managing logistics and reducing costs. In retail, particularly in South Africa’s expanding e-commerce marketplace, AI applications like dynamic pricing and customer behaviour analysis can enable SMMEs to respond effectively to rapidly changing market conditions,” he explains.
He adds that SMMEs in the healthcare, logistics, manufacturing, education, agriculture, nance and ntech, retail and e-commerce
sectors will be hard-pressed should they not integrate AI into their businesses in the next six months.
AI AND FINANCING
Andrew Maren, CEO at Pro tShare Partners (PSP), a ntech focused on providing SMME nancing, says AI tools can also help business owners compile business plans to help them secure funding and nancing. “AI has the power to level the playing eld for SMMEs, giving them access to the kind of nancial tools previously only available to larger corporations. Our commitment to developing AI-driven solutions ensures small businesses remain competitive in an increasingly digital world,” he says.
PSP is currently developing AI-driven software that aims to reduce turnaround times for SMME funding by providing tailored funding solutions, based on real-time nancial data.
ASSESSING A BUSINESS’S AI NEEDS
While introducing AI into a business has numerous advantages, it can also present challenges if a business case for adoption is not carefully thought through before implementation. To mitigate some of the risks and challenges, Moyo advises the following: “Firstly, the business must adopt a balanced and well-planned approach, align the implementation of AI tools with its strategic goals, upskill employees to use the tools and have a plan in place to address any operational challenges that may arise.”
Moyo further explains that adopting AI and technology doesn’t have to be an all-or-nothing approach. “It should be a gradual process focused on maximising business value while minimising complexity. A great starting point is ensuring the business has a solid foundation for capturing, collecting and storing operational data. This can be achieved by implementing a cloud-based ERP system, which ensures that future AI tools can access accurate, real-time data and therefore create a single source of truth across the business.”
Follow: Dumisani Moyo @ www.linkedin.com/in/dumisani-moyo Professor Manoj Chiba @ www.linkedin.com/in/manojchiba Andrew Maren @ www.linkedin.com/in/andrewmaren
AI’S GLOBAL IMPACT
PwC’s global artificial intelligence (AI) study, Sizing the Prize: Exploiting the AI Revolution, predicts that AI will have the following impact on the global economy by 2030:
• AI will contribute $15.7-trillion to the global economy.
• $6.6-trillion will come from increased productivity resulting from the introduction of AI into systems and processes and $9.1-trillion from consumption-side effects.
• AI will boost the global market gross domestic product (GDP) by an average of 26 per cent.
• Markets whose GDP will experience the biggest gains from AI include China and North America. In China, AI’s impact is valued at 26 per cent (equal to $7-trillion), and in North America, 14.5 per cent, which translates to $3.7-trillion.
• In South America, the total impact of AI on GDP is predicted at 5.4 per cent (valued at $0.5-trillion); in Europe, 21.4 per cent (valued at $2.5-trillion); in developed Asia (excluding China), 10.4 per cent (valued at $0.7-trillion). Total impact for the rest of the world is predicted
Andrew Maren
EMPOWERING SMALL BUSINESS
From funding support to digital empowerment, here’s how Vodacom Business supports growth and resilience. By SANNESH BEHARIE , managing executive for mobile and small medium enterprises
From the smallest informal traders to larger operations with 250 employees, small and medium enterprises (SMEs) are the lifeblood of our country, driving economic growth and innovation. Vodacom is committed to empowering these businesses and helping them overcome unique challenges to thrive in today’s world.
UNDERSTANDING THE CHALLENGES SMES FACE
For SMEs, survival and growth isn’t easy. South African businesses grapple daily with a host of challenges, from power outages
impacting operations to limited access to funding and nancial support.
Managing cash ow, expanding business operations and accessing the latest technology to drive ef ciency are all pressing needs in the SME space. Many SMEs also struggle to adopt and leverage digital tools that can propel them into Industry 4.0 where technology, connectivity and data are crucial for staying competitive and relevant.
Sannesh Beharie
VODACOM’S ROLE IN THE SME SECTOR
Over the years, Vodacom Business has actively engaged with SMEs to provide the tools, skills and support they need to navigate and grow in today’s digital landscape. The company has enabled over 114 000 SMEs with digital technologies that help streamline their processes, increase ef ciency and unlock new growth opportunities. Vodacom’s extensive product and service offerings ensure that businesses, no matter their size or stage, can harness the power of technology.
Its V-Hub platform, which supports over 100 000 SMEs, is just one example of how Vodacom helps South African businesses upskill and access critical digital tools. V-Hub provides invaluable resources, training and guidance tailored speci cally to SMEs, helping them build the digital skills needed to keep pace with a rapidly evolving marketplace.
BREAKING DOWN BARRIERS FOR SME SUCCESS
One of the biggest obstacles for many SMEs is access to nance. Vodacom has responded by introducing microlending options, point-of-sale solutions, insurance and other nancial products designed to support SMEs. These offerings help bridge the funding gap, enabling businesses to manage cash ow and invest in growth when it matters most.
Additionally, Vodacom has opened doors to new markets by integrating over 1 000 SMEs into its value chain as suppliers. By doing so, it helps South African businesses expand their reach and tap into new customer bases, empowering them to grow beyond traditional limits.
A LEGACY OF SUPPORT AND INNOVATION
For 30 years, Vodacom has been a trusted name in South Africa. With 14 years of experience speci cally focused on business solutions, it has an in-depth understanding of the local business landscape. Whether a business is a microtrader, a small operation, a medium enterprise or a large corporation, Vodacom’s resilient technology and market expertise offer tailored solutions to plug gaps, resolve challenges, and support growth.
MOVING FORWARD TOGETHER
Vodacom is committed to meeting its customers’ needs with solutions that empower their journey toward success. As Vodacom continues to develop partnerships with its clients, it aims to grow alongside them, helping them reach new heights in their digital journey. The goal is to ensure SMEs have the tools and support they need to overcome challenges, adapt to change and thrive in South Africa’s evolving economic landscape.
In partnership, Vodacom looks forward to advancing SMEs, helping them not just to survive, but also ourish, drive innovation and contribute to the vibrant economy of South Africa. Together, let’s continue moving forward.
