Building a Sustainable Future How African Bank empowers MSMEs

Despite their significant contribution to the South African economy, and their ability to create much-needed employment opportunities, micro, small, and medium enterprises (MSMEs) often find themselves on the sidelines of the economic playing field. Their access to funding is often stymied by funding models that do not take the realities of running a small business into account.

It’s a dilemma that the founders of African Bank grappled with at the inaugural NAFCOC meeting in Soweto in 1964. Their solution was to create a financial partner that would empower ordinary South Africans at a time when they were excluded from the mainstream economy. Many of them were entrepreneurs who understood that the success of small businesses and the prosperity of their communities were intertwined.

The Roots of the African Bank ESD Programme

Inspired by this rich heritage, and the potential of MSMEs to transform our economy, African Bank developed its Enterprise and Supplier Development (ESD) Programme in collaboration with 22 On Sloane. 22 On Sloane is the largest startup campus and entrepreneurship hub in Africa. The campus offers startups and innovative SMMEs a complete turnkey solution to scale, from the initial idea to commercialisation, funding opportunities and access to markets. Its aim is to nurture the entrepreneurial mindset, ensure their sustainability, and explore development of new industries while contributing towards job creation in Africa.

This 12- month intensive capacity building programme, designed to address the unique challenges faced by MSMEs, looks at various business elements, including compliance requirements for different sectors, alignment of business goals, and financial targets with market-proof business models and capabilities. The programme is part of the African Bank’s broader strategy to nurture entrepreneurship and drive economic inclusion of local communities.

Success Stories: Miante Manufacturing

Miante Manufacturing is one of the participants in the African Bank ESD programmes. Owned by Wendy Mpendulo, the company manufactures, processes, and packages nuts, biscuits, health bars, breakfast mix, trail mix, shombe chips, seeds, and peanut butter for wholesale distribution.

Wendy was scouted by African Bank during an exhibition at a Tshwane University of Technology entrepreneurship event: “I was exhibiting at a TUT event when a scout from African Bank asked about my business and the challenges I faced as a female entrepreneur. She recommended the African Bank ESD programme as a potential solution, and that’s how I discovered it.”

Wendy plans to develop the business into a franchise model and to private label with one of the big FMCG companies in South Africa.

Scaling Up with Chuck Chilli

The founding duo of Chuck Chill, Boikano Sikwane and Tshepiso Manyoha, were attending an African Bank ESD summit at Maponya Mall in Soweto when they learnt about a pitching competition that would happen during the two-day summit. Their pitch drew praise from the judges and today Chuck Chilli is a B2B manufacturer of a range of chilli-based relishes and condiments which are supplied to retail and wholesale stores.

“The business was started in my garage,” said Boikano Sikwane. “Our first customers were family and close friends. The word spread and we started selling at flea markets and soon we partnered with independent retailers.”

Their expansion allowed them to pass the Safety Certification (FSSC) Development 2 food safety audit.

Food Safety Compliance is an important requirement, opening doors to local and international markets. They have since listed with headline retailers including Food Lovers Market.

“Guided by our purpose of advancing lives, our objective is to equip entrepreneurs with the skills they need to grow sustainable businesses,” said Edna Sathekga-Montse, Group Chief Transformation and Sustainability Officer at African Bank. “We acknowledge the challenges that entrepreneurs face and have committed ourselves to supporting them in a sustainable manner. Our initiatives support the growth of black-owned enterprises by ensuring they have the support they need to thrive in the mainstream economy.”

Follow African Bank on social media for more information on our sustainability and entrepreneurship initiatives, and other community outreach projects.

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