Massmart and Absa join forces to support black entrepreneurs

| 0 Comments


Massmart and Absa have partnered to assist a black-owned milling company to expand its operations and create 40 permanent jobs.

Lethabo Milling, a participant in the Massmart Supplier Development Programme, acquired a mill in Ventersburg, Free State, and will receive an order from Massmart to produce 10 000 tons of Massmart’s house brand Econo Super Maize Meal as part of the deal.


The partnership marks an important shift in focus for Massmart Supplier Development, said programme executive Mncane Mthunzi. “We recognise that reviving key industries and developing much needed skills continues to be an important mandate in the South African context.

 

mcane.jpgMassmart has entered into a mutually beneficial partnership with Lethabo and Absa that will result in black representation in a key industry, create jobs and also put our Econo house brand on the shelves,” he added.


The deal is worth R9.8-million, comprising an R8.2-million loan provided by Absa Enterprise Development. Massmart has acted as guarantor for 50% of the loan and has additionally issued a R1.6-million grant to Lethabo to upgrade the facilities and put a new packaging line in place. Lethabo will use the loan to purchase the mill, equipment and upgrades. Absa has also set up a working capital facility to assist with the initial cost of the setup.


“This deal has managed to cut out all the administrative barriers most small businesses face when attempting to secure financing agreements” said Lethabo Milling CEO Xolani Ndzaba. “It is difficult to obtain finance for these kinds of projects without production commitments from big companies such as Massmart. We will also be milling our own Lethabo brand and we hope to distribute our products across the country in the coming years.”


Speaking about Absa’s involvement, “Absa recognises the importance of the SME sector as an engine to drive economic growth, which in turns leads to job creation,” said Head of Business Banking Barclays Africa, Roy Ross.


“As the financial partner of the Massmart Supplier Development programme, Absa will serve the needs of the SME suppliers involved by making funding available to them. In addition to this, we will provide market access and business linkages through our Procurement Portal and provide non-financial support through our network of Absa Centres of Entrepreneurship located across the country”, further attributed Ross.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More