The Sanlam Group and South African National Parks (SANParks) have jointly launched a R10 million (€493 290) funding programme to provide access to market, finance and business development support to SMMEs from communities surrounding South Africa’s major national parks.
The goal of the Sanlam SANParks SMME Support Programme is to create sustainable businesses by providing supply chain finance at the lowest cost possible.
At the launch event held in the Kruger National Park yesterday (June 27) – the date that the United Nations declared Micro, Small and Medium-sized Enterprises Day – Sanlam and SANParks said South Africa’s major parks contributed around R3 billion (€147m) to the economy annually, creating and retaining jobs in the small, medium, and micro enterprises (SMME) sector.
Focused initially on the Kruger National Park – one of the largest national parks in Africa – the programme aims to impact targeted SMMEs as identified in the SANParks overall supply management plan and will run for one year.
The programme will offer short-term working capital through interest-free loans to SMMEs with whom SANParks can procure goods and services in and around the Kruger National Park.
Sanlam, Africa’s largest non-banking financial services group, will contribute, as part of its pilot programme, R10million in loan support, and development support will be implemented by I AM AN ENTREPRENEUR (IAAE), a leading enterprise development agency experienced in helping entrepreneurs build and grow their businesses.
The programme aims to create sustainable SMMEs that can deliver goods and services to SANParks, thereby preserving and potentially contributing to job creation in and around Kruger National Park.
‘Deep commitment to sustainable growth’
Karl Socikwa, Group Executive: Market Development & Sustainability at Sanlam, said it was an example of the group’s deep commitment to sustainable growth on the African continent. “Our purpose is to empower generations of Africans to be financially confident, secure, and prosperous. SMMEs are critical to the South African economy; they’re a significant lever for growth. The National Development Plan forecasts SMMEs will create 90% of the 11 million new jobs our country desperately needs. This will not happen unless we, as part of South Africa’s corporate community, play our part.”
He continued: “The Sanlam Group is deeply committed to driving the development and growth of the South African economy. Our impact journey is not a new one – we’ve been committed to investing in communities and the environment for more than 100 years. Our parks are a pivotal part of our nation, and we need to treasure them – and the universe of people responsible for their maintenance and upkeep. We know many of these SMMEs have been severely impacted by the pandemic. We are delighted to partner with SANParks to offer vital financial and business development support to help these businesses thrive.”
Socikwa highlighted that SMMEs were imperative for economic recovery and growth in all the markets in which the company operated and, within the context of South Africa’s unprecedented unemployment rate, they were a key catalyst in the creation and preservation of jobs.
Broader strategy
For SANParks, the programme formed part of a broader strategy to uplift SMMEs in the communities surrounding its parks, said CEO Hapiloe Sello, who expressed her appreciation to Sanlam for the business development support initiatives.
“Our incubation programme has yielded a group of young, determined entrepreneurs who have shown eagerness to transact with the park and to promote rural economic development. As an organisation, we buy services and goods and have always been ready to transact with our neighbouring communities. We are excited that the Board has endorsed this proposal and look forward to witnessing the empowerment of our rural communities.”
SMMEs that are contracted to SANParks and are interested in accessing the programme should liaise directly with the SANParks Supply Chain Management unit at the Kruger National Park.
