Enhanced livelihoods > Enterprise and supplier development (ESD)
Enterprise and supplier development (ESD)
Our ESD programme supports black economic
empowerment by transforming our supply and value chains
in line with the B-BBEE Act. A preferential procurement
policy leads our approach, prioritising contracts with
black-owned, especially black women-owned enterprises.
Through the ESD programme, we help these businesses
meet the standards of scale, integrity and quality required
for inclusion in our value chain. In partnership with industry,
government and non-profits, we provide suppliers with
capital, education, mentorship and market access.
Our ESD strategy, updated in 2023, focuses on five key
areas and aligns with our 2030 targets to support black-owned
enterprises, create jobs and build a significant ESD
fund. This strategy will guide our initiatives until 2028.
ESD focus areas
Preferential procurement: Prioritise small-scale and black-owned enterprises
Market access: Manage an ESD fund to invest in market access for small-scale and black-owned enterprises
Agri-development: Focus on farmer development and agri-processing enterprises
Capacity building: Support business development by providing access to capital, market opportunities and management skills training
Channel development: Facilitate access to stock finance and business support for black-owned and black women-owned primary wholesale and last-mile distributors
Management
Our primary method for providing liquidity and business
development investment is through the Dipuno ESD Fund,
launched in 2019. Our focus is on supporting black-owned and black women-owned agricultural enterprises, including
distributors since 2022. We engage these enterprises
through our farmer development initiatives, which help
small farmers achieve scale through incubation, financing,
business development and technical support.
Over the last two years, the ESD programme has faced
significant challenges, including supply chain disruptions,
extreme weather, rising costs and power outages, all of
which have affected small farmers. These issues have
delayed produce deliveries and led to loan defaults through
the Dipuno Fund, requiring us to source from commercial
suppliers or imports. To mitigate these impacts, we have
introduced more flexible contracts, replacing fixed
agreements with letters of intent.
We are actively exploring ways to support farmers through
alternative energy, additional funding avenues and new
partnerships. We also recognise the need to enhance
technical assistance for agricultural aggregators and are
working to strengthen collaboration with government to
align grant disbursements with planting seasons. The
pause on Dipuno Fund disbursements, instigated in 2023,
remained in place throughout 2024. In 2025, we will again
reassess our strategies and explore blended financing to
reduce reliance on loans.
Performance
Progress has been modest due to the challenges faced,
but we remain committed to overcoming these obstacles
and reinforcing our ESD efforts going forward. The Dipuno
Fund's capital investment remains at R104 million,
maintaining the R100 million ESD fund target reached
ahead of schedule in 2022. To date, the fund has approved
agri-development projects valued at R54,4 million, with
R10 million set aside for a stock credit guarantee to
support black-owned distributors.
In 2024, we onboarded four new agricultural suppliers,
including an aggregator for white maize (132 hectares) and
three additional farmers for white maize (815 hectares),
bitter sorghum (350 hectares) and wheat (100 hectares).
Additionally, we increased sourcing volumes from a
black-owned aggregator cultivating tomatoes on 33 hectares,
benefiting 12 farmers. The programme created 384 jobs
– 42 permanent and 342 seasonal.
With the pause on disbursements, these new farming
enterprises were onboarded without receiving financial
support from the Dipuno Fund. Instead, the letters of intent
we hold with these suppliers secure offtake agreements
and market access.
Looking ahead, our focus remains on strengthening the
ESD programme, exploring opportunities in non-agricultural
sectors and increasing supplier integration into our value
chain. Partnerships and diversified funding will be critical to
ensuring long-term success for smallholder farmers.
Enterprise and supplier development (ESD)
Our ESD programme supports black economic empowerment by transforming our supply and value chains in line with the B-BBEE Act. A preferential procurement policy leads our approach, prioritising contracts with black-owned, especially black women-owned enterprises. Through the ESD programme, we help these businesses meet the standards of scale, integrity and quality required for inclusion in our value chain. In partnership with industry, government and non-profits, we provide suppliers with capital, education, mentorship and market access.
Our ESD strategy, updated in 2023, focuses on five key areas and aligns with our 2030 targets to support black-owned enterprises, create jobs and build a significant ESD fund. This strategy will guide our initiatives until 2028.
ESD focus areas
Management
Our primary method for providing liquidity and business development investment is through the Dipuno ESD Fund, launched in 2019. Our focus is on supporting black-owned and black women-owned agricultural enterprises, including distributors since 2022. We engage these enterprises through our farmer development initiatives, which help small farmers achieve scale through incubation, financing, business development and technical support.
Over the last two years, the ESD programme has faced significant challenges, including supply chain disruptions, extreme weather, rising costs and power outages, all of which have affected small farmers. These issues have delayed produce deliveries and led to loan defaults through the Dipuno Fund, requiring us to source from commercial suppliers or imports. To mitigate these impacts, we have introduced more flexible contracts, replacing fixed agreements with letters of intent.
We are actively exploring ways to support farmers through alternative energy, additional funding avenues and new partnerships. We also recognise the need to enhance technical assistance for agricultural aggregators and are working to strengthen collaboration with government to align grant disbursements with planting seasons. The pause on Dipuno Fund disbursements, instigated in 2023, remained in place throughout 2024. In 2025, we will again reassess our strategies and explore blended financing to reduce reliance on loans.
Performance
Progress has been modest due to the challenges faced, but we remain committed to overcoming these obstacles and reinforcing our ESD efforts going forward. The Dipuno Fund's capital investment remains at R104 million, maintaining the R100 million ESD fund target reached ahead of schedule in 2022. To date, the fund has approved agri-development projects valued at R54,4 million, with R10 million set aside for a stock credit guarantee to support black-owned distributors.
In 2024, we onboarded four new agricultural suppliers, including an aggregator for white maize (132 hectares) and three additional farmers for white maize (815 hectares), bitter sorghum (350 hectares) and wheat (100 hectares). Additionally, we increased sourcing volumes from a black-owned aggregator cultivating tomatoes on 33 hectares, benefiting 12 farmers. The programme created 384 jobs – 42 permanent and 342 seasonal.
With the pause on disbursements, these new farming enterprises were onboarded without receiving financial support from the Dipuno Fund. Instead, the letters of intent we hold with these suppliers secure offtake agreements and market access.
Looking ahead, our focus remains on strengthening the ESD programme, exploring opportunities in non-agricultural sectors and increasing supplier integration into our value chain. Partnerships and diversified funding will be critical to ensuring long-term success for smallholder farmers.