VP: Procurement Africa
SAB/ AB inBev Procurement is the driving force behind the entrepreneurship and transformation agenda because as a large corporate citizen in SA, with a strong ambition to build our local communities, we are uniquely positioned to provide entrepreneurs with the visibility of our supplier landscape. We know where the opportunity lies within our business based on our internal requirements and needs. Because of this, we can place entrepreneurs with take-off agreements which in turn provide for stable income to grow their business
We also have a passionate team, representing all various functional backgrounds in Procurement to support the different types of entrepreneurs within our value chain. To provide entrepreneurs with the necessary support for them to grow we are consolidating our supplier development skills into the SAB Accelerator.
Igniting the entrepreneurial culture amongst the youth and SA community at large means recognising that we have powerful resources and tools at our disposal that we can share with small businesses. We are putting more time and resources behind all our social programs with fresh ideas, passion and people, and understand that we have a responsibility to be an active member in our communities.
The new Centre of Excellence (CoE) was put in place to ensure that SAB has the capability to lead the entrepreneurship conversation in SA by optimising and scaling our existing initiatives SAB Foundation, SAB KickStart, SAB Thrive, and the new SAB Accelerator into a more comprehensive and impactful programme. This would grow and support the full entrepreneurial ecosystem from the rural entrepreneurs, to social innovators, to youth owned entrepreneurs and onto to transformed businesses that can become suppliers to SAB. Through the CoE, we want both entrepreneurs and suppliers to have a seamless experience in easily accessing the best programme that is best suited to grow their business.
We want to have the most credible program that has real sustained economic impact. What we are really looking for is to allow people to have a livelihood through jobs creation. We know that jobs can come and go, but we are committed to continue our investment in the programs in the future and with our SAB Accelerator we are making a significant step to teach and support entrepreneurs for the long term. Look out for our impact scorecard on our entrepreneurship website to follow our progress.”
Director of Corporate Affairs
SAB’s Enterprise Development programmes have been pioneers in the space of entrepreneurship in South Africa for many decades.
For us, entrepreneurship strikes at the very heart of SAB – that is because we started as a small enterprise more than 120 years ago. From the dusty streets of Johannesburg during the time of the booming mining industry, Charles Glass took the opportunity to trade his beers to more than 200 pubs that sprung up across the city. Today, we are part of a giant multinational company with more than 500 brands.
The SAB entrepreneurial programmes have covered the length and breadth of South Africa and focus on rural business to youth and black industrialists to contribute to inclusive growth.
There is an opportunity for all types of businesses in our programmes.
We are enormously proud of SAB KickStart, our longest-running programme. To date, SAB has empowered close to 25 000 young entrepreneurs across the country through financial and non-financial support (our investment has exceeded R100-million).
Regarding our ‘newer’ programmes, we understand how daunting it can be for an SMME to get onto the supply chain of a multinational corporation. For this reason, SAB will attempt to integrate these SMMEs into our preferred supply list and give them an opportunity to demonstrate their abilities.
We believe the mentorship and business development support provided to entrepreneurs within our programmes, gives them a good foundation to succeed.
SAB - SAB InBev have always had three main objectives when it comes to the communication of the entrepreneurship programmes: to highlight the work we’re doing with entrepreneurs, to provide practical and useful information to entrepreneurs about our programmes and of course importantly, to enhance the reputation of SAB.
SAB started life itself as an entrepreneurial endeavor and we’ve been involved in entrepreneurial development for many decades. We like to talk about the work we’re doing because it serves to encourage others to get involved, and budding entrepreneurs to dream big enough to convert their ideas into a sustainable business.
Our current approach is communicating much more broadly about all our initiatives and with, for example our new microsite, we’re housing all the information for all types of entrepreneurs in one place to make our programmes easier and more accessible.
Our main stakeholders are entrepreneurs, and we need to make sure that they’re getting all the information they need, and they are reassured that we’re backing them all the way, providing just the right kind of support they need. Effectively they’re our ambassadors too, and their success is our success. They also help spread the word to other entrepreneurs, which ensures the success of the programmes into the future. In addition, we’re talking to communities and of course also to the media, NGOs and interested stakeholders in government.
Because our programmes are diverse and speak to entrepreneurs in different stages of business, our communication starts with a simple message to entrepreneurs across the spectrum – we believe in you and we’re there to support you with the kind of assistance you really need, no matter whether you’re an inventor, a commercial entrepreneur or a social innovator. So, while there is one central message, we also tailor our specific messages according to the kinds of stakeholders we’re talking to. This takes us time to do properly but we are absolutely committed to getting the right messages across to the right people. And given we’ve been involved with entrepreneurs for so long, we think we can really help.
Our economy is under pressure and unemployment has risen, which affects most people. The most important thing to remember is that if South Africa succeeds, SAB does too. And the more we invest in our people, the more it will come back to us. That’s an important part of our dream.
Director: SAB Foundation
The SAB Foundation is a trust created for small businesses that focus on innovative ideas that endeavour to solve social problems. We also support businesses which can be commercialised and are based in rural areas and/or run by the youth and/or people with disabilities.
The fund was established in 2011 and we have worked with over 400 entrepreneurs and created 800 jobs. Our hands-on approach has allowed us to touch the lives of many people over and above the entrepreneurs we’ve worked with.
Over the years, we’ve had challenges with measuring the impact of our programmes, and we have learned that we need to run a rigorous selection process and regularly re-assess our funding models to allow us to create high impact businesses.
The support we’ve provided has enabled entrepreneurs to access further growth and even become lobbyist on social issues that affect vulnerable people.
Since the beginning of the SAB Foundation, we’ve seen businesses grow from generating a turnover of R6000 to R70000 per month and we are now, more than ever, beginning to realise that the dream of creating 10 000 jobs in five years is possible.
We believe, with our support, businesses can grow exponentially and innovative ideas can become viable, commercial businesses that can solve some of the social issues in the country.
Supplier Development Director
The SAB Accelerator programme, launching in August 2017, is a new addition to the entrepreneurship programmes within our business.
The key objective of SAB Accelerator is to grow our supply chain to be inclusive of black-owned, especially black women-owned, businesses.
To achieve this, we are creating an incubator consisting of 10 business coaches and 10 engineers, who are dedicated to growing these suppliers.
SAB Accelerator will partner with the company’s suppliers and provide coaching and technical expertise, which in turn will help them understand the SAB landscape, its value chain and integrate them into our business.
Simply put, SAB Accelerator is a team of people who are dedicated to help black-owned suppliers improve and grow their businesses and in doing so, create much needed jobs.
As part of its public interest commitments, SAB undertook to create an incubator to grow black-owned and black women-owned businesses. We realise there is an imbalance within the South African business landscape and this programme will create an inclusive supply chain that is true economic transformation.
We also believe that if we want to show our commitment to the South African government, we must grow the economies in which we operate and have a positive impact on society. Beyond making beer, we want to create an equal and just society.
We ran a pilot programme in February 2017 with 10 of our suppliers – taking them through our incubation programme over an initial three months. Based on their feedback, we have identified what is important to them and how best to roll out the programme in the future.
Personally, I think entrepreneurs face a number of limitations that stunt their potential but with the support of SAB Accelerator, these can be overcome.
Procurement Capabilities Director
As the Procurement Capabilities Director for Africa, I often describe my team as the heart and soul of our organisation.
We must ensure we are not only sourcing suppliers responsibly but that we are proactive in transforming and localising our supply chain, to make sure we are present and relevant in the communities we operate.
I am excited to see the role of procurement elevated in driving the entrepreneurship and transformation agenda.
The socio-economic environment in which we operate as well as the revised BBBEE legislation, requires that we adopt a ‘business unusual’ approach to how we buy. We are being more deliberate in creating market access opportunities for different types of entrepreneurs - from small, medium, micro, black-owned and black woman-owned businesses. We are building and supporting a strong and diverse supply chain – something I am proud of.
The business has a big dream of reducing the country’s growing unemployment rate by enabling thousands of entrepreneurs with access to opportunities – together creating more than 10 000 jobs over the next five years. This dream has inspired me to be more impactful in my role knowing the work we do has the potential to change the lives of so many people.
Previously, our entrepreneurship programmes were not aligned to a common goal. We have addressed this with the establishment of three new capabilities: a Entrepreneurship Centre of Excellence, the SAB Thrive Fund and SAB Accelerator.
The creation of the R250-million SAB Thrive Fund has been a game changer for us in procurement. We now have a mechanism to invest in the growth of fast-growing black-owned suppliers and the transformation of existing white-owned suppliers.
The Entrepreneurship Centre of Excellence and SAB Accelerator are two new entrepreneur programmes added to the stable. They are creating a more enabling environment for our procurement team, which allows us to open more opportunities for small and transformed businesses. I am excited to see that our beneficiaries from the SAB Foundation and SAB KickStart programmes have started to graduate into our supply chain. It is rewarding to see how we can support our entrepreneurs all the way.
As one of the largest fast-moving consumer goods companies in the world, we believe in bringing people together for a better world. Through the meaningful goals we have set for the business over the next five years, I believe that I can actively play my part in building a better South Africa.
Entrepreneurship COE Manager
The SAB Entrepreneurship Centre of Excellence (CoE) arose from the realisation that, as an organisation we have many different programmes within the entrepreneurship and development sectors. However, we tend to work in silos when in fact, these programmes are complimentary. This means we are also not leveraging our resources and scale to deliver to the public our agenda and our dream. We drive many job creation initiatives that should ideally have a positive impact on the socio-economic environment.
One of the CoE’s mandate is to provide oversight, integration, and best practice for all the programmes. We need to pool everything together into a streamlined and uniform model that will be able to best monitor the impact that these programmes have on our stakeholders as well as the country’s economy.
The CoE will apply standardisation to the programmes, while making sure that they are distinct and speak to the entrepreneurial value chain. If we set a target to create a certain number of jobs, we will interrogate the right type of job positioning for that specific programme. Right now, we don’t have a standard definition for what constitutes a job – does informal work constitute a job, or are we looking at three or six months’ minimum employment? Is contract or temporary employment a job? There are quite a few definitions and the CoE aims to standardise that without imposing just one size fit-all definition.
Another mandate is to be the organisation’s Think-Tank. We are going collect data from the programmes through newly-introduced measuring and reporting methods. We will also track what we are doing and the impact that it has. But the CoE also needs to keep an eye out on trends, developments, statistics and changes in the business strategy. For instance, we know now that we are moving towards renewable energy, so we’ll be using less electricity. This means we must start questioning the readiness of our supply chain to meet these demands. In doing that, we will be able to focus on this sector that is currently not sufficiently capacitated in SA, and be able to do skills development to ensure that our supply chain is ready and equipped for the challenge.
One focus point for the development programme is to improve livelihoods and understanding what is critical for the people in that space. Is it putting a roof over their head? Is it taking them out of a shack and putting them in a brick home because of the income they’ve generated? How do we make sure we start measuring that and applying it across the spectrum of the development programmes?
Our economy is in a recession; we keep sliding backwards and unemployment is increasing. So where are all these jobs that companies are committing to? We want to measure how much impact we’ve had on the entrepreneur to ensure that, when the programme is concluded, they can create those jobs and sustain themselves for five years and beyond.
This speaks to measurement and evaluation and making sure everything is calculated from the same framework, which is something we haven’t been doing. As we sit currently, we have determined that creating a job can cost us anything from R500 to R3million. So, how do we apply best practice to leverage our resources to make sure our money can take us as far as possible or can touch as many entrepreneurs as possible? We currently have many Business Development Service providers (trainers and coaches) who implement our programmes for us. Now, we want to clean this up and create a slicker ecosystem through the CoE.
Enterprise Development Specialist
SAB KickStart launched over 20 years ago and is SAB’s flagship entrepreneurship development programme.
It is one of the longest running initiatives of its kind in South Africa.
The focus of SAB KickStart is to ignite a culture of entrepreneurship across the country and support high impact business owners who have the potential to create job opportunities within their industry.
SAB’s involvement with helping entrepreneurs develop successful businesses aligns with government’s goals to transform the small business sector.
The programme offers entrepreneurs, between the ages of 18 and 35, the opportunity to both start and grow their existing businesses through a comprehensive, much needed business development support that encompasses access to non-financial and financial solutions, as well as access to markets that have previously been closed off to small, youth owned businesses in the past.
We understand the need for sustainable solutions for small, youth owned businesses in terms of both competencies that will place businesses in the best positions to succeed, as well as opportunities that will truly grow businesses’ bottom line. We want to be the leading drivers of such solutions.
We are currently looking for two types of entrepreneurs:
SAB KickStart has evolved over the years to improve its impact on the entrepreneurs going through the programme. We want to ensure the longevity and success of small, youth owned businesses years down the line.
With South Africa’s unemployment rate as of 2017 sitting at more than 25%, a 14-year high, the need for job creation is greater than ever.
I refuse to passively watch this continue in my lifetime. I want to see people that look like me, talk like me and think like me – take ownership of opportunities and become a success not only within their own direct circles, but for the bigger circle of our economy.
To-date, we have helped empower close to 3 500 entrepreneurs and between them, they have created an average of 6.7 jobs per business.
Based on its exponential growth and success in South Africa, we have also started implementing the programme across other African countries, and intend to continue to make bigger and bolder strides.
SAB Thrive Fund Manager
The SAB Thrive Fund is a black private equity fund that has been set up and funded by SAB to transform our supplier base through acquisition, business development and fostering entrepreneurship.
Through our partnership with Awethu Project, an SMME investment company, our suppliers benefit from capital and business support.
We support existing black-owned suppliers and white-owned suppliers who are in the process of transformation.
For the black-owned businesses in our supply chain, we identify opportunities to help them grow – this could be in the form of an additional revenue source, geographic expansion or further grant funding.
For the white-owned businesses in our supply chain, we help them transform to a black-owned business. As the SAB Thrive Fund is a hundred percent black-owned private equity fund, it can acquire business shares to help the business transform.
Our next mandate is to invest into larger businesses:
We work closely with the procurement team to identify suppliers that would benefit from the SAB Thrive Fund.
We believe that through transformation, we can make a real difference in society.
Awethu Project: Chief Executive Officer
The Awethu Project is an entrepreneurship development company that serves as fund manager and implementation partner for the SAB Thrive Fund.
Our mission is to build society through entrepreneurship development.
Awethu Project was founded in 2009 when we realised that entrepreneurs were a powerful means to elevate the prosperity of South Africa, yet there was little developmental support available to them.
We have incubated hundreds of entrepreneurs and positively impacted the lives of thousands of people to date. We create entrepreneurial opportunities for people who are structurally excluded from such opportunities, thereby reducing inequality and helping to build a more just society.
The Awethu Project is based on two business units – each focused on solving two distinct challenges that South Africa is currently faced with.
I co-founded Awethu Project when I was 26 and over the years my experiences, interactions and challenges have shaped my perspective – leading to one that is quite different from when I began my entrepreneurial journey. That said, I believe more in the power of entrepreneurship, opportunity, hope and social enterprise than ever before. My fundamental goal is to give people opportunities and help grow businesses. Through my encounters, I have realised that if you give people a chance, they can start a movement and build a country.
As Awethu Project has grown and matured, we have continuously worked towards our mission while navigating the nuances of being a for-profit social enterprise (being a black-youth-owned business and being an institution that deals with vulnerable communities).
To tackle our mission of reducing inequality, we leveraged the change in the 2013 B-BBEE codes and, in 2015, collaborated with SAB through the SAB Thrive Fund - an Enterprise & Supplier Development (E&SD) Fund set up to comply with the Department of Trade and Industry’s B-BBEE Codes.
The SAB Thrive Fund aims to increase the low number of black-owned businesses in the SAB supply chain by growing existing black-owned businesses. It also addresses wealth inequality and enables many black corporate professionals who want to buy assets but who do not have family wealth to fall back on or access capital they otherwise would not have had to be able to grow or start these businesses.
Similarly, our years in entrepreneurship have also taught us there are many white-owned businesses that want to transform, however lack the avenues to do so in a genuine and meaningful manner.
We bring these two types of individuals: the white business owner and the black aspiring entrepreneur together, so that they can create shared value and improve the country with the help of the SAB Thrive Fund.
As Awethu Project, there is more than B-BBEE compliance and returns at stake when we build a business - there is an aspect of nation building. When we bring people together, we go beyond an individual impact. We reach an all-inclusive South African society – a society we all would love to live in.
Awethu Project: Chief Investment Officer
The Awethu Project is an entrepreneurship development company that serves as fund manager and implementation partner for the SAB Thrive Fund.
Founded in 2009, the Awethu Project has incubated hundreds of entrepreneurs and positively impacted the lives of thousands of people. We create entrepreneurial opportunities for people who are structurally excluded from such opportunities - thereby reducing inequality and helping to build a more just society.
While entrepreneurial development and establishing corporate suppliers may not be the core business and/or speciality of a corporation – it is ours.
Enterprise and Supplier Development (E&SD) is an opportunity for us to access big supplier chains – like SAB – where entrepreneurs can win new business as well as grow their business in a supportive environment.
Our partnership with SAB began in 2015, where together we conceptualised the SAB Thrive Fund.
The SAB Thrive Fund is a black private equity fund that has been set up and funded by SAB to transform its supplier base through acquisition, business development and fostering entrepreneurship.
The SAB Thrive Fund supports existing black-owned suppliers with growth investments. In addition, it supports existing white-owned suppliers with transformation – to become 51% black-owned. This is done on a proactive basis where we help the supplier recruit, onboard and develop young black professionals to become future owners and/or executives in the business.
Regardless of black-owned or white-owned businesses, we find these existing suppliers struggle with raising patient and strategic capital. The SAB Thrive Fund invests such capital (in addition to catalysing growth and transformation), which allows for greater risk sharing and aligns interests for shared value creation over the long-term.
We find that there remains a scarcity of patient black equity for small businesses in the South African capital markets – especially capital that also comes with hands-on support. The SAB Thrive Fund buys equity shares and together with the entrepreneur, takes on the real risks to help grow the business – while throwing its weight and the weight of Awethu Project behind the investments.
Indeed, business support is critical to the fund’s investment model. While capital can be a major constraint to growth, so too can management capacity and the ability to succeed when that growth comes quickly. For this reason, suppliers receive executive mentorship and management coaching. The SAB Thrive Fund also offers tactical business development support, where we work to ensure suppliers are maximising their B-BBEE Scorecard performance; generating and closing as many sales leads as possible; and keeping their books and compliance records up to date.
The SAB Thrive Fund also assists investee businesses access third-party capital. In some instances, a third-party equity investor and/or bank will co-invest, which provides more capital and potential to unlock additional growth and job creation opportunities.
In terms of target criteria, the SAB Thrive Fund looks to invest in suppliers that:
Once identified, our investment process involves: an initial call and introductory presentation, followed by an online application.
If the application is successful, we engage with some face-to-face meetings before entering into a term sheet agreement.
Once we are aligned with the target supplier, we kick-off the due diligence and legal contracting process.
From start to finish, the process can take as little as 12 weeks, assuming the supplier is ready, willing and able to partner with the SAB Thrive Fund.