The main aim of the Supplier Development Programme (SDP) is to provide opportunities for small and medium manufacturing enterprises. It improves local procurement linkages for new and existing small businesses to be able to sustainably trade with Massmart.
The programme was established following intervention from Minister of Economic Development, Ebrahim Patel, who has championed the development of local suppliers in the retail sector.
“Interventions such as these show that when we make an effort we can make a difference. We need to build a stronger, more competitive manufacturing base and both government and the corporate sector have a role to play in rebalancing our economy. Finished products fetch far more value on the global market, this event shows what can be done and proves it’s not just in the heads of policymakers,” says Patel.
The programme currently has a portfolio of 33 small businesses manufacturing a variety of products ranging from chefwear, cooking gel and instant noodles to bathtubs, adhesives, cooler-boxes and paint. Of the 33 suppliers, 13 are private label projects, eight are import substitution projects and six are exporting products to countries such as Botswana, Zambia and Chile.
Massmart chairman, Kuseni Dlamini says that part of the success of the programme lies in its focused approach. “Track record and experience of the entrepreneur is one of the most important things to consider when looking for businesses to invest in. The entrepreneurs on this programme are among the best entrepreneurs in the country. We have also learnt that greenfield investments are not the best way to go about supplier development rather investing in capital equipment, plant machinery, industrial engineering and marketing support is essential.”
Established in 2010 Reapso SA is a 100% black female-owned company that operates from a factory in Selby, Johannesburg. Through the SDP, Reapso has replaced an international supplier and now produces all of the chefwear sold in Makro stores.
Ikusasa Green, a manufacturing company in Sutterheim, Eastern Cape supplies cooler boxes under Massmart’s popular private label brand, Camp Master, to Makro, Game and Builders stores.
Based in Hartebeesport Dam in the North West province, Umlilo Charcoal supplies briquettes to all Builders stores throughout Southern Africa and has started exporting to New Zealand, the Middle East and Walmart Chile.
“Small businesses play an important part in creating a more inclusive economy. We at Massmart are proud to be walking this journey with our participants and we salute their efforts in growing their businesses, creating employment opportunities, and supporting the communities in which you live and work,” says Dlamini.
