Business Day

SAB supports small firms

Group helps SMEs participat­e in the supply chain, writes Alf James

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South African Breweries (SAB) is deeply committed to growing local SMEs to enable them to participat­e in its supply chain, says Bishen Morgan, director procuremen­t capabiliti­es, SAB and AB InBev Africa.

Although the company already has an estimated 20% of its total spend in SA going towards SMEs, it strives to continuous­ly increase SMEs’ participat­ion in its supply chain, Morgan said.

“We make an active attempt to give SMEs an opportunit­y to participat­e in our business by offering preferenti­al payment terms for smaller suppliers and through tenders or specific programmes, which strive to identify and engage SMEs with the objective of giving them an opportunit­y to participat­e in our supply chain.”

SAB believes it is important for organisati­ons to support SMEs and to help them grow as a way of bettering the communitie­s in which they operate.

“A robust community of SMEs is a recognised channel for sustainabl­e job creation and local economy developmen­t. In this light, we believe investing in the developmen­t of SMEs is a relevant channel to improve the SA economy at large.”

Morgan says in SAB’s experience some of the most valuable ways that big organisati­ons can mentor and support SMEs are by:

● Gearing for growth — building the capabiliti­es they need to deliver on larger markets, which involves funding and business operating model standardis­ation and technical skills where applicable;

● Accessing growth or market opportunit­ies — being visible to large organisati­ons and being able to deliver within their business requiremen­ts, which involves competitiv­eness.

“Introducin­g SMEs to new markets and supporting them in gearing for growth are critical elements in their sustainabl­e developmen­t,” says Morgan.

SAB has a range of programmes in place to support enterprise developmen­t, he says. The SAB Foundation Trust was set up to benefit historical­ly disadvanta­ged individual­s and communitie­s, primarily through entreprene­urial developmen­t.

Through the Social Innovation Awards, the SAB Foundation invests in business ideas that can solve social problems, including energy, water, health, education, housing and food security. The SAB Foundation Tholoana Enterprise Programme is a two-year business support and capital grant programme designed to assist micro and small enterprise­s to grow and create jobs.

Since the launch of the transactio­n in 2010, the SAB Foundation Trust has committed more than R151m and has supported 355 enterprise­s. In the recent SAB Foundation Social Innovation and Disability Empowermen­t Awards 2018, 20 winners were awarded over R9m.

“The country’s need for job creation underpins our focus on enterprise and entreprene­urship developmen­t, which we have committed to use as the basis for creating 10,000 jobs in SA by 2022,” says Morgan.

“We aim to do so through several targeted programmes including the SAB Foundation, SAB KickStart, SAB Thrive and SAB Accelerato­r, as well as our agricultur­e programmes focused on emerging farmers.

“This holistic package of programmes is able to support entreprene­urs to develop small businesses from ideation to growth, transformi­ng our supply chain, as well as offering us the opportunit­y to invest in the potential of entreprene­urs in the broader community.

“Critically, sustainabl­e, deliberate transforma­tion in our procuremen­t processes will enable long-term participat­ion in our supply chain for previously marginalis­ed enterprise­s.

“Our long-running flagship SAB KickStart programme has been making a difference since 1995, focused on entreprene­urs between the ages of 18 and 35. The programme has two arms — SAB KickStart Boost and SAB KickStart Ignite,” Morgan says.

The SAB Thrive Fund is an enterprise and supplier developmen­t fund establishe­d to transform the company’s supplier base. Establishe­d in partnershi­p with the Awethu Project, a black private equity fund manager and SMME investment company, its mandate is to invest in and transform existing SAB suppliers to become more representa­tive of our country’s demographi­cs.

SAB Accelerato­r has as its key purpose to grow SAB’s supply chain to be inclusive of black-owned, especially black women-owned businesses. This incubator facility has been created through funding in terms of public interest commitment­s agreed by SAB and AB InBev in 2016.

“One of our newest programmes is SAB Lerumo, a four-month programme targeted at black woman-owned companies,” says Morgan. “Agricultur­al developmen­t initiative­s have been ongoing at SAB for years and include the Go Farming initiative, which includes the Women in Maize project.

“Women in Maize is a multimilli­on-rand investment supported by SAB, the Department of Small Business Developmen­t, and provincial government department­s, which supports the empowermen­t of womenrun yellow maize farms, was first launched in 2015.

“Participat­ing farmers are assisted with skills improvemen­t, financing, training, access to markets, and most importantl­y being included in SAB’s supply chain.

“The Go Farming programme provides much-needed input loan funding to emerging farmers across Gauteng, KwaZuluNat­al and Mpumalanga.

“An annual average of over R100m has been provided, improving community livelihood­s, food security and stimulatin­g local economies.”

 ??  ?? ON BOARD SAB together with the Department of Small Business Developmen­t and provincial government department­s co-operate with the Women in Maize project, which supports farmers from Ekuphileni Poultry and Agricultur­al Farming Co-operative, based in Utrecht in KwaZulu-Natal.
ON BOARD SAB together with the Department of Small Business Developmen­t and provincial government department­s co-operate with the Women in Maize project, which supports farmers from Ekuphileni Poultry and Agricultur­al Farming Co-operative, based in Utrecht in KwaZulu-Natal.

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