Raizcorp ARIZE

Massmart to Develop SME Suppliers

by Colleen Lewis

An innovative new partnership has been launched between Massmart and Raizcorp (Pty) Ltd that will give a substantial boost to the development of small businesses. As part of Massmart’s strategy to source more goods locally, the company has announced a new initiative to strengthen its local supplier base.

In collaboration with Raizcorp, Africa’s leading private sector small business incubator company, Massmart will identify and support more local suppliers that can be integrated into the Massmart group’s supply chain. The partnership with Massmart will offer incubated companies in the various Raizcorp programmes the opportunity to be selected as preferred suppliers. Raizcorp’s role is to nurture these small businesses and assist them to bring their products to market according to Massmart’s requirements and quality standards, and facilitate and accelerate their access to Massmart’s divisional buyers.

Massmart CEO Grant Pattison said that local procurement makes commercial sense. At the same time, he said, the company was excited to be able to make a strong contribution to enterprise development. “While black economic empowerment (BEE) is a strong focus of Massmart’s strategy,” said Pattison, “this initiative is also about building small businesses through this new opportunity.”

Raizcorp’s CEO, Allon Raiz, said that the partnership holds the opportunity for more local small and medium-sized enterprises (SMEs) to engage with Massmart and potentially benefit from its retail distribution network. “Here we have one of Africa’s retail giants using its procurement power to stimulate local SME development and growth,” he said.

Small businesses owners of all races that are interested in becoming potential Massmart suppliers can apply to join Raizcorp’s Partner Elite programme which focuses on partnering with SMEs to help them become profitable and grow to the next level, said Raiz.

The agreement will also open doors to companies that would like to fund enterprise development programmes as a means of meeting their broad-based BEE scorecard obligations, by offering them the opportunity to sponsor the admission of potential suppliers to the Raizcorp incubation programmes. Raizcorp already has more than 220 small businesses in its support programmes, which could stand a chance to benefit from fast-tracked access to Massmart buyers.

Massmart has welcomed the partnership because Raizcorp has an exemplary track record of success in helping small businesses to become sustainable and receives international acclaim for its work in SME development. Raizcorp’s policy is to screen its applicants and back those entrepreneurs who have the potential to succeed.

Massmart is renowned for being an industry leader in broad-based black economic empowerment (BBBEE) and has attained the maximum score of 15 points for enterprise development on its BBBEE scorecard. The company is the third largest distributor of consumer goods in Africa and has nine retail and wholesale brands under its umbrella, namely Game, Dion Wired, Makro, Builders Warehouse, Builders Express, Builders Trade Depot, CBW, Jumbo Cash & Carry and the Shield buying group.

Dell Development Fund Supports Raizcorp Programme

An interview with Rubiena Duarte, Head of Transformation:

1. What is Dell’s view on Enterprise Development?

The future sustainability of the economy of South Africa largely rests on the shoulders of entrepreneurs. The entrepreneurial spirit of South Africans, aids in job creation, meets business and consumers needs and improves the lives of all South Africans. For these reasons, Dell identifies and supports viable small business initiatives. Dell aims to make small black-owned businesses more economically active in South Africa. As an organisation we have exceeded our required BEE expenditure towards Enterprise Development over the last 2 years and achieved full points for this element on the BEE scorecard. Since 2006, we have assisted over 60 companies. At Dell we place a firm emphasis on sustainability in everything that we do and it’s no different with investments in these companies. All organisations are offered mentoring and coaching, marketing and business planning, access to business skills workshops and additional business support.

2. What are some of the various Enterprise Development projects that Dell are involved in?

Some of our investments include:

Continuous support of beneficiaries who are Dell partners
Learning academies for students who cannot afford to study further
Services to employ and empower the Deaf
A multitude of investments into events, entertainment, construction and management service providers

3. How did Dell come to hear about Raizcorp?

Raizcorp approached Dell for assistance a few years ago and we have enjoyed a successful relationship ever since.

4. Why did Dell choose the Raizcorp programme as part of its Enterprise Development?

We chose the Raizcorp programme as it offers a sustainable solution to the development of businesses. It is a holistic approach that seems to take into account all elements of building a successful company.

5. What are you hoping the outcome will be from this programme?

Very simply, we would like the businesses we have chosen to be successful.

6. What has your experience with Raizcorp been like thus far?

We have a very professional relationship and there are no concerns.

7. What do you see as some of Dell’s successes in terms of Enterprise Development?

As a business, Dell focuses on real transformation within the organisation and in the communities we call home. South Africa requires a sustainable integrated business model that is sensitive to the needs of communities and businesses. Dell ensures this business model is executed through our initiatives in internal inclusiveness, connected communities and evolving business in South Africa. This model will allow us to assist communities in South Africa to become more literate, healthier and more connected, both to their countrymen and the rest of the world.