Enterprise and Supplier Development Programmes
Enterprise Supplier Development (ESD) is a process of working with certain suppliers to improve their performance for the benefit of the buying organisation. It is also to boost their performance and drive continued business growth through education, mentoring, and access to resources. In the context of South Africa, ESD refers to a set of affirmative action and local content development measures aimed at promoting economic transformation. Under the revised B-BBEE Codes, ESD refers to the combination of Preferential Procurement, Supplier Diversity, Supplier Development and Enterprise Development programs.
Tiger Brands Enterprise & Supplier Development Programme
Tiger Brands aims to increase its procurement spend with black agriculture and non-agricultural enterprises, secure agricultural food supply within South Africa through localised sourcing, and develop production and financial capacity of black-owned enterprises through the provision of procurement access, financial and technical support.
The Enterprise and Supplier Development (ESD) programmes that support the development of direct and indirect suppliers include:
- The Dipuno Enterprise and Supplier Development Fund is a R100 million fund that provides liquidity support for black-owned direct and indirect suppliers, black smallholder farming enterprises, and black distributors who have secured procurement opportunities with Tiger Brands.
- The Market Access Accelerator is an incubation support initiative that drives the support of black-owned and black women-owned enterprises to commercialise their businesses and expose them to market opportunities. The support includes business training, compliance support, business governance, and technical support, tendering, and bid support to enable them to access procurement opportunities within Tiger Brands supply chain, value chain, and distribution chain.
- The Agriculture Aggregator model increases the number of participating black small-scale farmers participating in the Tiger Brands value chain, by having these farmers work directly with an aggregator, that provides technical and management skills. Experienced farmers that have access to more than 100ha of arable land, have the opportunity to get direct offtake contracts through the Smallholder Development Support Programme.
- The Channel Development Programme aims to provide capacity building support to emerging black distributors to enable them to drive the distribution of Tiger Brands products in underserviced markets. These markets include informal/spaza markets, sector-focused distribution, township food services, and private sector food services suppliers.
Sanlam Enterprise Supplier Development Programme
The Sanlam Enterprise Supplier Development (ESD) Programme has partnered with the Association for Savings and Investment South Africa (ASISA) to provide investment funding and business development (BDS) support to SMEs. Through this, we hope to create meaningful success stories that benefit our industry as a whole. Sanlam provides investment funding and business development support to SMEs that show potential for future growth.
Accenture Enterprise And Supplier Development Programme
In response to both global and local calls for more inclusion and diversity in the market, Accenture’s Enterprise and Supplier Development Programme applies global best-practice principles to scale and sustain the entrepreneurs and small business suppliers with whom we partner. The aim is to increase the participation of black-owned SMEs within both Accenture’s own supply chain and in the wider economy.
Exxaro Enterprise And Supplier Development Programme
Through its vision of powering better lives in Africa and beyond, Exxaro aspires to implement leading practices in ESD across the core functional areas. This initiative intends to promote 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 suppliers and black entrepreneurs to encourage economic growth in the country through their operations and other ventures. Exxaro will leverage the purchasing power, internal and external capabilities to deliver sustained stakeholder value, which entails:
- Protecting and growing shareholder value by securing the licence to operate while being financially self-sustaining.
- Meeting and exceeding minimum standards placed by local, provincial and national government.
- Reducing enterprise wide supply chain risk by lowering internal user transaction cost and supply side risk associated with security of supply and delivery lead times. This is achieved by actively investing in diversifying the quantum and quality of vendors located close to their business operations. Supporting economic transformation by growing the number and size of black owned business. This is achieved by directly and indirectly providing market access opportunities for black owned business and by investing in non- financial and financial business support programs.
Telkom
Telkom FutureMakers was launched in 2015 as the Enterprise and Supplier development unit of Telkom. To date, the programs have supported just over 2500 small, medium, and micro-sized enterprises through incubation, investment, connectivity, and business development support services.
FutureMakers priority pillars include:
- Diverse value chain programs
- Township Economy
- Innovation
- Venture Capital Fund
Telkom has a committed capital of R250 million which is managed by IDF Capital on Telkom’s behalf to invest in innovative technology businesses at seed capital stage to growth stage. Investments are made by way of equity, quasi-equity, and debt
For more information on the Venture Capital fund, visit: https://www.idf.co.za/Solutions/Entrepreneurs/Telkom-FutureMakers
Unilever Enterprise and Supplier Development Fund
Unilever’s Enterprise and Supplier Development Fund exists to provide black owned businesses an avenue to channel their vision, transform the business landscape and in so doing create much-needed jobs in our country.
Through the opportunities and support provided, entrepreneurs are able to gain business and technical support, access to funding and access to our procurement channels, thereby assisting us to transform our supply chain.
Developing small, medium and micro-sized enterprises enables Unilever to diversify its supplier base, broaden economic participation and deliver on the country’s economic development objectives.
Uniliver provides interest free loans and business support, with the aim to
- enable and develop black owned businesses
- improve local procurement
- create jobs
- empower communities
- create access to markets
Sasol Enterprise and Supplier Development
Sasol’s mandate is to identify, develop and sustain a pipeline of future-fit qualifying small and medium enterprises by enabling them to scale up into sustainable businesses through investment in innovative, sustainable, and socially relevant development solutions and funding.
They enable economic inclusion and access for small businesses and historically disadvantaged persons (HDPs), and contribute to economic growth, through our economic transformation programmes and interventions.
Read more: Business Incubators South Africa