SA’s MTN launches new ESD programme to increase SMME procurement spending by $209 M

Through the enterprise supplier development (ESD) program Xlerator, MTN South Africa aims to increase its procurement spend by ZAR4 billion (US $209 million) over the course of two years, with 51 percent of the SMMEs being owned by Black people.

The Xlerator program aims to enhance SMMEs’ access to funding, develop their business strategies, and double the number of SMMEs on MTN’s supplier database.

SMMEs with an annual turnover of ZAR500 million (US $26 million) or less, at least 51% black ownership, six months or more of operation, and daily operations overseen by black managers in key positions are eligible to apply for Xlerator.

“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,” said Charles Molapisi, MTN SA CEO.

MTN has selected Payabill, a South African startup providing SME financing, as one of the program’s financing partners. Payabill, which gives South African SMEs easy access to financing, will be included in the program with a few other carefully chosen banks and lenders.

“We are excited to have been selected by MTN to partner on its Xlerator programme. Payabill has already paid many suppliers in most sectors chosen by its customers all over the country,” said Eli Michal, Payabill CEO.