Q: What is the Supplier Development Fund (SDF)?
A: Massmart Holdings Limited (“Massmart”) has established a R200 million Supplier Development SDF (“SDF”), to assist South African small, micro and medium -sized business (“SMMEs”), who are either existing or potential suppliers to Massmart. The SDF is implemented over 5-years. The SDF targets all established local manufacturers, producers and significant assemblers of products that can be resold in the Massmart retail divisions. Preference is given to black-owned and women-owned businesses. The purpose of the SDF is to assist suppliers to enhance the quality of their products or improve their production capacity.
Q: What investment areas is the SDF focused on?
A: The SDF is focused on manufacturing. A strategy is in place to ensure that the SDF achieves significant impact across specific product categories that grow and enhance Massmart’s local procurement from SMMEs.
- We invest in brownfield enterprises, no greenfield projects will be considered
- We focus on manufacturing in areas where we are market leaders (building materials, DIY, Plastics etc)
- We prioritise projects which may be an import replacement
- There needs to be a demand in our supply chain for your goods
In line with this, we have minimized our investment in agro-processing and farming.
Q: How does the SDF engage with service providers?
A: The SDF engages service providers on behalf of its beneficiaries, and on behalf of the SDF administration.
Q: How does the SDF invest?
A: The SDF invests in three ways, namely 1) non-recoverable grants including for working capital and limited infrastructure and equipment requirements, 2) recoverable commercial loan guarantees and 3) non-recoverable technical assistance support to suppliers.
Q: How do I apply?
A: You can contact the SDF via the Massmart website, internal or external referral or direct telephone inquiry. Once you have made contact we will provide you with a contact sheet to complete and return to us. The SDF will thereafter assess your contact sheet to determine whether it’s in line with the SDF’s objectives and strategy.
Q: Can I drop off samples/products at the Head Office?
A: No. Upon submission of the application via the abovementioned process, we will make direct contact with the applicant should product samples be required.
Q: Who makes a decision on whether a beneficiary receives funding or not?
A: The SDF Fund Committee which is comprised of senior leaders and merchants within Massmart makes a decision by means of a voting process on which projects are funded and in line with the SDF’s overall strategy and objectives. The SDF Fund Committee consults with an Advisory Board on its decisions.
Q: How does the SDF measure its progress and impact?
A: The SDF will monitor all its approved projects to assess outputs and outcomes in line with the SDF’s strategy and objectives. Key measures to be reported on will include: the number of existing suppliers supported; the number of new suppliers supported; the number of suppliers supported within a specific prioritised cluster; the value of procurement from suppliers within a specific prioritised cluster; the value of purchase order commitments from suppliers within a specific prioritised cluster; the number of black-owned suppliers; the number of women-owned suppliers; the value of procurement from black-owned suppliers and the value of procurement from women-owned suppliers.