By Noko Mashilo
In a significant move to support South Africa’s SMMEs, Sanlam has formed a strategic partnership with South African National Parks (SANParks). This collaboration aims to provide crucial funding and resources to local entrepreneurs, promoting economic growth while encouraging sustainable practices within the country’s natural heritage. By connecting conservation efforts with commerce, this initiative seeks to empower SMMEs and strengthen the communities surrounding the country’s national parks.
Sanlam chief transformation officer Ray-Ann Sedres highlighted that the partnership was designed to increase the inclusion of local small businesses in SANParks’ procurement processes. She noted that the initiative was directly aligned with SANParks’ socioeconomic transformation strategy. “The programme was launched in June 2023 at Kruger National Park, and since the first funds were allocated in October 2023, almost 40 SMMEs have benefited, with 33% being black women-owned businesses and 50% led by youth.
“As the fund expands into the Garden Route for its second phase, the long-term goal is to make it available to SMMEs across all 21 parks nationwide,” she told Vutivi News. The SANParks Sanlam SMME Funding Programme is designed to support micro-businesses within the SANParks supply chain. “Sanlam offers purchase order funding at 0% interest, allowing these businesses to meet their procurement obligations with SANParks,” Sedres explained.
To qualify for funding, SMMEs must meet specific criteria. They must operate within 50km of a national park (with exceptions considered on a case-by-case basis), hold purchase orders from SANParks and be 100% black-owned. Currently, the programme is active only in the Garden Route and Kruger National Park. Applications for funding can be submitted via the Sanlam SANParks IAAE website, where the full process is outlined.
Sedres mentioned that the maximum funding available per application was R1-million. “In addition to funding, SMMEs are guided through the quoting process in line with SANParks’ procurement requirements. Phase two will also introduce financial education support, starting with the Kruger pilot,” Sedres added.
She further explained that the zero-interest loans were repaid once SANParks processed an invoice from a business. “SANParks plays a key role in managing this process, ensuring that it aligns with their broader goal of fostering a more inclusive base of SMMEs.”
When asked about measuring the programme’s impact on local economies and job creation, Sedres noted that success of phase one was gauged by the uptake of funding among SMMEs, with a particular focus on the inclusion of women and youth-owned businesses. She acknowledged that high interest loans often crippled SMMEs’ cash flow, making it difficult to build sustainable business models.
One challenge, Sedres said, has been raising awareness about the zero-interest offering to encourage more enterprises to participate in the procurement processes. “I advise SMMEs to do thorough research to forecast costs and grow profit margins. Vet suppliers carefully and shop around for competitive quotes,” she recommended.
Sindi Mathebula, founder of Mamapre and one of the programme’s beneficiaries, expressed her gratitude for the support. “My dream is to employ more people and expand into other provinces. This way, I can contribute to economic development,” she said.
Another beneficiary, Lebogang Gondwe who owns Yellow Sauce which specialises in insecticides, said: “Before this fund, borrowing money from lenders meant paying 25% to 30% in interest, which ate into my profits. The Sanlam fund has been a game changer for me.”
