Strategic partners can revitalise industry
Like many industries across the world, Covid-19 had a detrimental effect on the glass industry, but it also gave rise to new opportunities for collaboration and successful partnerships.
One such transformational partnership was that of SA Breweries (SAB) and Isanti Glass.
At the Black Business Council we are always encouraged to see companies such as SAB make a move to transform industry. The brewery’s partnership with the local glass producer meant Isanti Glass was saved from closing its doors due to the pandemic. This is a clear demonstration of enterprise development and implementation of the spirit of economic transformation.
Now, nearly three years on, Isanti Glass is poised to emerge even stronger. The glass bottle manufacturer plans to build a R3bn furnace in the next two years to deal with rising demand, creating 120 muchneeded jobs and contributing taxes to the fiscus. Isanti employs 470 people and is owned by Kwande Capital, 60%, while SAB holds 35% and Isanti Glass’ employees 5%.
The question is not why other companies should emulate this strategic partnership but rather why they are not taking the opportunity to do so. Everything points to this being the right move when it comes to transforming industries.
Economic transformation hinges on a fundamental requirement for market access for the companies being transformed. It is critical that these businesses can reach a broader market, as this will not only facilitate their growth but promote healthy industry competition. Innovation and product development is yet another advantage for budding businesses who have access to the market.
Looking at the case study of SAB and Isanti Glass, the brewery did the right thing by ensuring that it not only creates a black industrialist glass company but that there is market access by using the glass that comes from the company.
Market access allows the business to tap into new customer segments and establish its presence on a larger scale, thus providing the building blocks for success and sustainability.
Access to finance is another key element, and corporates should provide funding to upskill their transformative partner. The positive spin-off is new employment opportunities.
The effect of job creation cannot be overstated as it directly addresses a critical challenge that poses a substantial threat to the stability of our hard-won democracy and our country. This threat is pronounced when it comes to the younger generation as youth unemployment compounds the overall issue, posing unique socioeconomic concerns.
The Black Business Council would like to encourage other big businesses to look at similar ways to open their supply chains to localise, and also to support black- and womenowned business in the process. This lies at the heart of SA’s transformation.
A truly transformative journey should be lauded for its far-reaching benefits for individuals, communities, the businesses themselves, and the industry as a whole. It opens the doors for new and innovative ideas, the latest technologies, and alternative approaches that can collectively shape the industry’s evolution.
And what positively shapes an industry will positively shape our country.
As demonstrated by the recent historic victory by the Springboks, led ably by captain Siya Kolisi, where the entire country was behind the team, if we all work together we can and will achieve more than we could ever imagine.
The Black Business Council encourages other big companies to take a leaf out of SAB’s book.
IT IS CRITICAL THAT THESE BUSINESSES CAN REACH A BROADER MARKET
WHAT POSITIVELY SHAPES AN INDUSTRY WILL POSITIVELY SHAPE OUR COUNTRY