Corporate Enterprise & Supplier Development (ESD) programmes are a major source of funding for South African SMEs. Through B-BBEE requirements, large corporates invest billions annually in developing black-owned businesses via grants, loans, capacity building, and procurement opportunities. This guide covers how to access ESD support from major corporate programmes.
Who This Is For
- Black-owned businesses (51%+ ownership typically required)
- EMEs and QSEs (turnover under R50 million)
- Businesses in corporate supply chains or seeking procurement opportunities
- Sector-specific businesses (mining, retail, energy, banking, etc.)
About ESD
Enterprise & Supplier Development (ESD) refers to corporate programmes designed to develop and grow black-owned businesses in South Africa. These programmes are driven by B-BBEE legislation and form a critical part of corporate transformation efforts.
The B-BBEE Connection
The B-BBEE Codes of Good Practice require large corporates to contribute to Enterprise & Supplier Development to improve their B-BBEE scorecards:
B-BBEE ESD Requirements
- Enterprise Development (ED): 3% of Net Profit After Tax (NPAT) must be invested in developing qualifying EMEs and QSEs
- Supplier Development (SD): 2% of NPAT must be invested in developing suppliers in the corporate's supply chain
- Scorecard Weight: ESD accounts for 40 points (out of 105+4 bonus) on the B-BBEE scorecard
This creates a strong incentive for corporates to actively fund and develop black-owned businesses, making ESD programmes a significant funding source.
Types of ESD Support
1. Enterprise Development (ED)
Overview
Support for qualifying EMEs and QSEs that are NOT in the corporate's supply chain. Focuses on building capacity and sustainability.
Types of ED Support
- Grants: Non-repayable funding for equipment, working capital, or expansion
- Concessionary Loans: Below-market interest rates or favourable terms
- Equity Finance: Investment in exchange for equity stake
- Business Development: Training, mentorship, coaching, and advisory services
- Market Access: Linkages to markets and procurement opportunities
Target Beneficiaries
- 51%+ black-owned businesses
- EME or QSE classification (turnover under R50m)
- Not a supplier to the corporate (ED-specific)
- Often sector-aligned (mining businesses for mining corporates, etc.)
2. Supplier Development (SD)
Overview
Support for qualifying businesses that ARE suppliers or potential suppliers to the corporate. Focused on building supply chain capacity.
Types of SD Support
- Procurement Opportunities: Direct contracts or sub-contracts
- Capacity Building: Training to meet procurement standards
- Working Capital Finance: Bridging finance for contracts
- Equipment Support: Tools and machinery to fulfil contracts
- Quality Certification: Funding for ISO, SABS, or sector certifications
- Payment Terms Support: Early payment or preferential terms
Target Beneficiaries
- Current suppliers or potential suppliers to the corporate
- 51%+ black-owned EMEs or QSEs
- Ability to meet corporate procurement standards
- Sector-relevant products or services
3. ESD Pooled Funds
Overview
Some corporates pool their ESD contributions into dedicated funds managed by professional fund managers or development finance institutions.
Examples of ESD Funds
- Tshikululu Social Investments: Manages ESD for multiple corporates
- Ranyaka Community Investments: Social investment and ESD fund manager
- Trialogue: Manages various corporate CSI and ESD programmes
- Sector-specific funds: Mining Charter funds, retail funds, etc.
Advantages
- Professionalized assessment and disbursement
- Larger capital pools for bigger projects
- Standardized application processes
- Multi-year support programmes
Major Corporate ESD Programmes
1. Sasol Siyakha
Overview
Sasol's flagship ESD programme supporting black-owned businesses in the energy, chemicals, and related sectors.
Funding Range
R50,000 to R5 million (depending on programme track)
Support Includes
- Grants and concessionary loans
- Business incubation and mentorship
- Supply chain access to Sasol procurement
- Technical training and certification support
Focus Sectors
- Energy and chemicals
- Manufacturing and industrial
- Engineering and maintenance
- Transport and logistics
Contact
Website: sasol.com/siyakha | Email: siyakha@sasol.com
2. Anglo American Zimele
Overview
One of South Africa's oldest and largest ESD programmes, operated by Anglo American since 1989. Focuses on mining-related and community businesses.
Funding Range
R50,000 to R10 million (depending on business maturity)
Support Includes
- Equity finance and business loans
- Mentorship and business coaching
- Procurement linkages to Anglo operations
- Skills development and training
Focus Sectors
- Mining and resources
- Engineering and construction
- Community enterprises near Anglo operations
- Manufacturing and industrial services
Contact
Website: angloamericanzimele.co.za | Email: zimele@angloamerican.com
3. Standard Bank Enterprise Development
Overview
Standard Bank's ESD programme focusing on financial sector-aligned businesses and high-growth SMEs with scalability potential.
Funding Range
R500,000 to R5 million
Support Includes
- Concessionary loans with favourable terms
- Access to Standard Bank business banking services
- Financial management training
- Market access and networking events
Focus Areas
- Financial services and fintech
- Professional services
- Technology and innovation
- High-growth SMEs across sectors
Contact
Website: standardbank.co.za/enterprise | Email: enterprisedevelopment@standardbank.co.za
4. Nedbank Business Accelerator
Overview
Nedbank's ESD programme combining financial support with structured business incubation and accelerator services.
Support Includes
- Grants up to R250,000
- 12-month accelerator programme
- Business mentorship and coaching
- Access to investor networks
- Market linkages and procurement opportunities
Focus Areas
- Technology and digital businesses
- Green economy and sustainability
- Financial inclusion and fintech
- Youth and women-owned businesses
Contact
Website: nedbankaccelerator.co.za | Email: accelerator@nedbank.co.za
5. FNB Business Incubator
Overview
FirstRand's ESD programme via FNB, focusing on early-stage and growth businesses with strong business models.
Support Includes
- Seed grants and concessionary loans
- Office space at FNB incubation hubs
- Business development support
- Access to FNB business banking
- Networking and market access
Focus Areas
- Financial services and innovation
- Technology startups
- Retail and consumer services
- Professional services
Contact
Website: fnb.co.za/business-incubator | Email: businessincubator@fnb.co.za
6. Eskom Development Foundation
Overview
Eskom's development arm supporting businesses in energy-related sectors and communities near Eskom operations.
Support Includes
- Grants and soft loans
- Energy efficiency support
- Technical training and certification
- Supply chain access to Eskom procurement
Focus Areas
- Energy and renewable energy
- Electrical engineering and maintenance
- Construction and infrastructure
- Community enterprises near Eskom assets
Contact
Website: eskom.co.za/foundation | Email: edp@eskom.co.za
7. Transnet Enterprise Development
Overview
Transnet's ESD programme supporting businesses in transport, logistics, and port-related sectors.
Support Includes
- Concessionary loans and grants
- Supplier development and procurement access
- Technical training in logistics and transport
- Equipment support for transport businesses
Focus Areas
- Transport and logistics
- Port services and operations
- Rail-related businesses
- Engineering and maintenance
Contact
Website: transnet.net/enterprise-development | Email: enterprisedevelopment@transnet.net
8. SAB Foundation
Overview
The SAB Foundation is one of South Africa's most successful ESD programmes, with a focus on high-impact youth entrepreneurship.
Funding Range
R50,000 to R1 million
Support Includes
- Soft loans and business grants
- Intensive business training
- Mentorship and coaching
- Market access and networking
Focus Areas
- Youth entrepreneurship (18-35)
- Manufacturing and agro-processing
- Hospitality and tourism
- High-growth businesses
Contact
Website: sabfoundation.co.za | Email: info@sabfoundation.co.za
9. Tiger Brands Supplier Development
Overview
Tiger Brands' SD programme focused on developing suppliers in the food manufacturing and packaging sectors.
Support Includes
- Supplier finance and working capital
- Food safety and quality certification support
- Technical training in food manufacturing
- Procurement contracts with Tiger Brands
Focus Areas
- Food manufacturing and processing
- Packaging and materials
- Logistics and distribution
- Agricultural inputs and raw materials
Contact
Website: tigerbrands.com/supplier-development | Email: supplierdevelopment@tigerbrands.com
10. Pick n Pay Enterprise Development
Overview
Pick n Pay's ESD programme supporting businesses in retail supply chains, particularly in food production and packaging.
Support Includes
- Supplier development finance
- Retail readiness training
- Quality certification support
- Shelf space and market access
Focus Areas
- Food production and agro-processing
- Packaging and retail services
- Logistics and distribution
- Agricultural suppliers
Contact
Website: pnp.co.za/enterprise-development | Email: enterprisedevelopment@pnp.co.za
Eligibility Requirements
B-BBEE Requirements
Most corporate ESD programmes require beneficiaries to meet specific B-BBEE ownership criteria to qualify for corporate scorecard recognition:
- 51%+ black ownership: Minimum requirement for most programmes
- 30%+ black women ownership: Preferred or higher points for corporates
- B-BBEE certificate: Valid EME affidavit or B-BBEE certificate required
- Qualifying Small Enterprise (QSE): Business must be QSE or EME (turnover under R50m)
Size Requirements
- EME (Exempt Micro Enterprise): Turnover under R10 million (often prioritized for grants)
- QSE (Qualifying Small Enterprise): Turnover R10m-R50m (eligible for larger loans and equity)
- Start-ups welcome: Many programmes support early-stage businesses with potential
Sector Alignment
Most corporate ESD programmes prioritize businesses aligned with their:
- Core sector: Mining corporates support mining businesses, banks support financial services, etc.
- Supply chain needs: Products or services the corporate procures
- Community focus: Businesses in communities where they operate
- Strategic priorities: Green economy, technology, youth, women, etc.
How to Find Opportunities
- Visit Corporate Websites
Check the "Sustainability", "B-BBEE", "Enterprise Development", or "Supplier Development" sections of major corporate websites.
- Register on Supplier Databases
Many corporates maintain supplier databases. Register your business even if you're not applying immediately—they may reach out when opportunities arise.
- Attend ESD Events
Corporates host supplier days, ESD expos, and networking events. Attend to meet programme managers and understand requirements.
- Use ESD Intermediaries
Organizations like Tshikululu, Ranyaka, and Business Partners manage ESD programmes for multiple corporates. Register with them for broader access.
- Leverage FundingOS
Use Okhantu's FundingOS to search for corporate ESD programmes filtered by sector, location, and business profile.
Application Process
Typical Application Steps
- Pre-Qualification
Confirm you meet B-BBEE ownership and size requirements. Obtain your EME affidavit or B-BBEE certificate.
- Initial Contact
Contact the ESD programme via their website, email, or phone. Some have online portals, others use email applications.
- Expression of Interest
Submit a short EOI or concept note outlining your business, funding need, and alignment with the programme.
- Full Application
If shortlisted, complete a detailed application with business plan, financials, and supporting documents.
- Due Diligence
Most programmes conduct site visits, verification checks, and interviews with business owners.
- Assessment & Decision
Applications are reviewed by investment committees. Decisions can take 30-90 days depending on the programme.
- Contracting
If approved, you'll sign funding agreements, shareholder agreements (for equity), or supplier contracts (for SD).
- Disbursement & Support
Funds are disbursed (often in tranches), and you receive ongoing mentorship and monitoring.
Required Documents
- Valid B-BBEE certificate or EME affidavit (not older than 12 months)
- CIPC registration documents (COR14.3, COR15.1)
- Certified ID copies of all directors/shareholders
- Shareholders' certificates proving black ownership
- Tax clearance certificate (TCS PIN verification)
- 12 months bank statements
- Latest financial statements (audited or management accounts)
- Business plan (3-5 year projections)
- Proof of business address
- Sector-specific licenses or certifications (if applicable)
Tips for Success
Relationship Building
- Attend corporate events: Supplier days and ESD expos are opportunities to meet decision-makers
- Register early: Get on supplier databases before you need funding—it shows commitment
- Demonstrate sector knowledge: Understand the corporate's business and how you fit their value chain
- Be patient: Building corporate relationships takes time—start networking before you apply
Common Mistakes to Avoid
- Expired B-BBEE certificates: Ensure your certificate is current (within 12 months)
- Misaligned sector: Don't apply to programmes outside your sector without strong justification
- Unrealistic projections: Corporates have sophisticated assessors—be realistic about growth
- Poor governance: Late CIPC returns, tax non-compliance, or director issues are red flags
- Ignoring site visits: Take due diligence visits seriously—they carry significant weight
- Not leveraging mentorship: Many programmes offer mentorship—use it actively
Key B-BBEE Concepts
Important Terms to Understand
- Qualifying Small Enterprise (QSE): Business with turnover R10m-R50m. Measured on simplified B-BBEE scorecard.
- Exempt Micro Enterprise (EME): Business with turnover under R10m. Automatically B-BBEE Level 4 if 100% black-owned, or Level 1 if 51%+ black-owned.
- Black Ownership: Ownership by black people as defined in the B-BBEE Act (African, Coloured, Indian).
- 51% Black-Owned: More than half the business equity is held by black shareholders.
- 30% Black Women-Owned: At least 30% equity held by black women (earns corporates bonus points).
- EME Affidavit: Self-declaration of turnover and ownership for businesses under R10m (no verification needed).
- B-BBEE Certificate: Official verification by SANAS-accredited agency (required for QSEs and larger).
- Net Profit After Tax (NPAT): The base for calculating corporate ESD contributions (3% ED + 2% SD = 5% of NPAT).
Next Steps
Ready to Apply?
Browse live ESD funding programmes in FundingOS. Check your readiness before applying to identify any gaps in your documentation.
Need Help Accessing Corporate ESD Programmes?
Our network of B-BBEE consultants and funding advisors can help you identify and apply to corporate ESD programmes that match your business profile.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation