MTN announced yesterday that it would increase its procurement spend by R4 billion, and offer substantial support to small and medium-sized enterprises (SME) through its MTN Xlerator programme.
In a statement, the group said the MTN Xlerator was MTN South Africa’s enterprise supplier development (ESD) programme, that plans to increase MTN’s procurement spend by R4bn over two years with 51% black-owned SMMEs.
"The programme plans to double the number of SMMEs on its supplier database and will uplift them through business strategy development, skills development, and improved funding access," it said.
The MTN ESD programme is open for SMMEs that have been in operation for at least six months, are at least 51% black-owned, achieve an annual turnover of R500 million or less, and have daily operations managed by Black managers in key positions.
MTN SA CEO Charles Molapisi said: “MTN Xlerator is a symbol of our unwavering commitment to progress, innovation, and empowerment. We believe in the enormous, unearthed potential within South Africa.
"At MTN, we believe in the evolution of empowerment and our goal is to transition from a transaction-based supply chain to a values-based one, ensuring everyone enjoys the benefits of a connected world while building a better tomorrow.”
Payabill, the SME financing fintech, has been chosen by MTN as one of the finance partners for its Xlerator programme.
"Payabill provides simple access to funding to South African SMEs. Payabill will feature alongside other selected lenders and banks in MTN’s programme. Payabill welcomes MTN as another partner to achieve Payabill’s objectives in giving SA’s SMEs a chance to compete and grow," it said.
The group said managing cash flow was a real challenge for SMEs across sectors. Payabill was founded to assist those businesses that don’t have sufficient funds to buy stock, assets, or services from suppliers who demand cash upfront.
"Payabill targets SMEs with annual revenues between R500 000 and R30 million, giving them working and other capital to grow their businesses. It offers various forms of finance including local and international trade finance, as well as asset finance," it said.
Payabill CEO Eli Michal, said: “We are excited to have been selected by MTN to partner on its Xlerator programme."
“Small businesses are neglected by banks and other lenders due to high perceived credit risk, and associated costs of assessment and collection. SMEs see these lenders as having onerous credit requirements to keep them out,” he said.
Companies wishing to apply for MTN Xlerator should go to www.mtn.co.za/xlerator/.
BUSINESS REPORT