Socio-economic development
SOCIO-ECONOMIC DEVELOPMENT BARLOWORLD MBEWU
South Africa, like most countries around the world, has been hit hard by the global pandemic. Work opportunities have been decimated for many and therefore being an enabler for assisting South Africa managing challenges and committed to achieving a better life for its citizens, Barloworld wants to continue to play its part. Motivated by our drive to "Inspire a world of difference, enabling growth and progress in society", we created Barloworld Mbewu, an innovative flagship programme designed to provide tailored support for start-up social enterprises, established social businesses, organisations and institutions that actively solve local challenges using good business practices. In the start-up of Mbewu our Chief Executive expressed that given that Barloworld's Group strategy takes a focused approach to long term value creation for all our stakeholders, the programme is fully aligned with this strategy because we believe that when our communities grow, we also grow. PROGRESS AND SUCCESSES ACHIEVED Since its inception, Mbewu has benefited 29 social entrepreneurs that have a proven income stream and demonstrated an ability to be scalable. The 29 inaugural cohort beneficiaries were provided with business leadership skills development during the incubation phase of the programme. The incubation emphasised the finance management, governance and marketing among other modules to ensure that as they move in their journey, they are well equipped with how to manage their organisational finance. Further to this, they received funding support totalling R13 million.
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Planting the 'seed' for positive change As an entrepreneurial business, we initiated a programme to support social enterprises that drive positive, meaningful change in communities across South Africa. The new programme, Barloworld Mbewu to which we have allocated R30 million over three years will provide capacitation through seed funding, access to finance and business management skills. The programme is aligned with our strategy of creating long term value for all our stakeholders.
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THE FOLLOWING STORIES OUTLINE SOME OF OUR SUCCESSES WE WISH TO HIGHLIGHT FOR THE REPORTING PERIOD.
| BENEFICIARY | HOW THE ENTERPRISE CREATES VALUE | HOW MBEWU HAS CONTRIBUTED TO GROWTH AND SEL F -SUSTAINABI L I T Y |
| Molam's Farming | Molam's Farming is a family-owned grain producing farm located in the Ngaka Modiri Molema District Municipality in the North West Province. The company was founded in 2010 by the Molamu Family and is currently managed by Alice Radebe and her partner. Molam's Farming cultivates maize, sunflower, groundnuts, blue buffalo grass pastures and vegetables. The entity also generates income from contract farming to assist various previously disadvantaged communities in the vicinity. |
Molam's Farming has improved operational efficiency since being incubated into the Mbewu programme. The farm was the recipient of new tractors donated by Barloworld and Diesel Reserve. Following the donation, the farm is now able to reduce the outbreak of fires and increase efficiencies by:
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| Got Game | Got game is a skills development entity that upskills young people in townships and mining towns. This is achieved by bringing together multiple stakeholders to deliver skills development programmes and by establishing automotive services hubs that provide shared infrastructure from which the micro-enterprises can service mines, other corporates, companies and local communities. |
Funds allocated through Mbewu are being used to digitise paper-based course content onto the Umoya Branded Learning Management System (LMS) and Conferencing Platform where users will be able to participate in online face-to-face sessions and collaboration tools. A Virtual Facilitator is able to train students enrolled at the Vaalwater, Limpopo - Disabled Learners Training Intervention. |
| Ludada & Associates |
Ludada & Associates provide prosthetic and orthotic products to people living with disabilities in the OR Tambo municipality. The company was founded by its Managing Director, Ncedo Ludada, in 2016 in Mthatha, in the Eastern Cape. After studying for an MSc. in Clinical Rehabilitation at Flinders University in Australia, Ludada returned to South Africa to establish his practice which was severely underserviced, especially the poor and rural communities. At the time, private manufacturers and services for the devices were available only in East London, Port Elizabeth and Durban. |
The disbursement of funding to Ludada & Associates has enabled the company to establish an orthopaedic service where advanced technology is used to provide internship opportunities to students. The company now uses its practise to help students with on the job training, which was not previously provided for. |
| Limise Promotions | The company produces charcoal from an alien plant species called black wattle which is harvested from the Gcado forest in Hogsback in the Eastern Cape. Black Wattle is an alien plant species which endangers the scarce water resources of the area and thus its removal helps to preserve water. To date, the company has built four kilns on the land with a capacity to produce 300 tons of charcoal per month. There are immense opportunities for the sustainability of Limise Promotions. According to the company's projections, there are approximately 100 hectares of forest infested with black wattle with a potential yield of 135 000 tons of charcoal. |
With Mbewu funding, the company has finalised packaging and is now in the final stages of printing from its new factory. Limise has also finalised a 40' container order destined for Hamburg, Germany. Additional export markets identified include the UK and Netherlands. The company has been in a good position during the COVID-19 pandemic, in that not only existing jobs were retained, but additional people were employed. Currently the company has a staff complement of 15 people, all female, from the surrounding community. |
ROADMAP JOURNEY FOR 2020/2021
Looking ahead, we will be opening up another round of applications to attract new social entrepreneurs with a strict focus on rural communities. We will also continue to mobilise and collaborate with other key stakeholders to maximise the social impact value for the benefit of society.
ENTERPRISE AND SUPPLIER DEVELOPMENT BARLOWORLD SIYAKHULA Our focus is on diversifying spend to black-owned and, in particular, black women-owned entities. We promote Barloworld Siyakhula (Siyakhula) as an active vehicle for achieving this, allocating 3% of South Africa's net profit after tax to the programme which develops entrepreneurs in our communities. Entrepreneurs are required to undergo a stringent selection process. We analyse the business, establishing what steps need to be taken to ensure the business is sustainable. Our comprehensive support programmes include:
ENABLING PROGRESS As part of our drive to promote enterprise and supplier development, Siyakhula has leveraged the support of key project partners that assist with helping businesses to:
In addition, we have contracted third-party suppliers in the form of Enterprise and Supplier Development (ESD) agencies to provide support and to create platforms for engaging suppliers, as well as other stakeholders within the Group's value chain. In determining the success of an enterprise, we look at the number of jobs created, turnover, year-on-year profitability and whether an enterprise is sustainable into the future. Our aim is that we should not be Siyakhula participants' only client, but that we should be a catalyst for generating further work in the marketplace. Tailored support programmes for SMMEs have not only ensured business sustainability, they have created jobs and contributed to much needed diversity of suppliers. |
Committed to meaningful interventions that transform our society by investing in initiatives that drive economic inclusion and social cohesion and build resilient communities Barloworld Siyakhula has an interest in sustaining Black Owned SMMEs to achieve B-BBEE objectives. Utilising a blend of financial and non-financial support, Siyakhula provides small, micro- and medium-sized enterprises (SMMEs) with the assistance to enable participation - within Barloworld's value chain as well as the larger marketplace. Since inception Siyakhula has invested an accumulative spend of over R300m on enterprise and supplier development, indirectly sustaining over 800 jobs |
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Through one of our significant partnerships, one of our other recent Siyakhula initiatives is the establishment of the Barloworld Siyakhula Incubation Hub (BSIH). Through the initiative, Barloworld aims to boost supplier development and diversity within the Group's value chain. By ushering SMME candidates through an intensive programme of mentoring, training and comprehensive support services, Siyakhula looks to build the capacity of businesses to become world-class suppliers. Following the demolition of Barlow Park where the Siyakhula incubation hub was located, Barloworld appointed Raizcorp, a 51% black-owned enterprise, to provide business incubation, supplier development and related services to Barloworld Enterprise Supplier Development beneficiaries. COVID-19 SALARY RELIEF IMPACT The COVID-19 pandemic proved to be a global shock with unknown long term effects globally and by extension on South Africa, Barloworld and its stakeholders (suppliers and communities). In an effort to protect our country against the impact of COVID-19, government made a prudent decision to invoke a national lockdown. In response to this decision, government, business community and society at large have shown remarkable unity to provide some relief to companies and individuals who are and continue to be adversely affected by the virus and lockdown. As Barloworld Siyakhula, we also embarked on a journey to obtain a deeper understanding of the effect that the national lockdown has had on the operations of our beneficiaries. The feedback resulted in the financial stability of the beneficiaries' businesses being impacted by COVID-19 and the lockdown. A Siyakhula COVID-19 impact crisis committee was formed which considered recommendations for support to Siyakhula beneficiaries impacted by COVID-19. Although Barloworld has limited resources and cannot resolve all challenges faced by Siyakhula beneficiaries, it was able to assist within reasonable limits to support and help direct beneficiaries to other available relief packages in the market.
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SIYAKHULA IMPACT
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ROADMAP JOURNEY FOR 2020/2021
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