Collaboration is key to transformation in South Africa’s financial services sector. The Association for Savings and Investment South Africa (ASISA) leads this charge, representing major asset managers, collective investment scheme management companies and life insurance firms. A central focus of ASISA is uplifting black-owned small and medium enterprises (SMEs) through its Enterprise and Supplier Development (ESD) initiative.
Launched in 2013, the ASISA ESD initiative fosters sustainable development and economic empowerment. It is more than just funding; it is a comprehensive ecosystem that supports SMEs often excluded from traditional financing avenues.
Funds are managed by Edge Growth and provide not only financial resources but also vital business support and market access for SMEs selected from ASISA member supply chains.
A framework for collaboration
The success of the ASISA ESD initiative relies on its collaborative framework. Funders can contribute through investments, loans or grants, creating a sustainable structure that continually supports emerging businesses. This pooled investment model enhances purchasing power, reducing costs while maximising impact on SMEs.
The initiative aligns with the Financial Sector Code and engages diverse stakeholders – fund managers, independent trustees and corporate sponsors – to drive meaningful transformation.
Empowering SMEs through tailored support
Beyond financial aid, the ASISA ESD initiative offers tailored support programmes that equip SMEs with skills and knowledge. This includes technical assistance and governance training, empowering entrepreneurs to adopt environmentally friendly practices and create sustainable jobs.
Success stories highlight the initiative’s impact: Benguela Global Fund Managers is emerging as a black-owned player in ethical investing, while I-G3N addresses clean energy challenges amid load-shedding.
A sustainable future through shared commitment
With approximately R700 million in assets and about 70 funders, the ASISA ESD initiative is among the largest in the country. Corporate sponsors include companies such as Sanlam and Momentum Metropolitan.
Lee Coller, a representative of ASISA, emphasises the efficiency gained through resource pooling: “Publicly owned companies could all do their own thing, but it would probably be at a higher cost for themselves. By pooling resources, they can achieve more, reduce costs and reach a wider network.” Amanda Urban, Head of Operations at Edge Growth, echoes this sentiment: “Through collaboration, we can have a greater impact on the SMEs we work with. Without this support, our efforts would be limited.”
Joining the ASISA ESD initiative
Interested companies can visit the ASISA website for details. SMEs seeking funding can apply directly.
For more insights and case studies, the full ASISA ESD 2024 Annual Overview is available, showcasing the transformative impacts of this collaborative effort across South Africa.
Read more about entrepreneur and small business support:
Source: The original version of this article was published in the Trialogue Business in Society Handbook 2024 (27th edition).
