At the recent 79th session of the UN General Assembly in New York, President Cyril Ramaphosa and business leaders including Standard Bank Group CEO Sim Tshabalala, highlighted the importance of collabo- ration and co-investment in driving local economic development.

SA’s economy depends heavily on small and medium-sized businesses. The UN estimated last year that SMMEs represented more than 98% of formal enterprises and employed more than 60% of the country’s workforce. Yet, the sector often faces significant challenges, including a lack of funding and difficulty competing with established large corporates. Standard Bank’s Enterprise and Supplier Development (ESD) Programme is working to close these gaps by empowering players in the SMME sector, not only to survive, but thrive and contribute to an inclusive growth agenda.

Naledzani Mosomane, Head of ESD at Standard Bank Business & Commercial Banking SA, emphasises the critical role of SMMEs. “SA cannot achieve its full growth potential without fully integrating the SMME sector into our national strategy. Large corporates are wellpositioned to support the expansion of this vital sector”.

The bank’s commitment to enterprise and supplier development goes beyond rhetoric. In 2023, Standard Bank’s supplier development loan book reached R184m, supporting 174 of the Bank’s suppliers with financing and business services. Notably, the bank paid R605m to these SMMEs within 15 days of invoicing, ensuring consistent cash flow for their operations.

From Struggles to Success: Impact Cleaning’s Journey

A standout example of the programme’s success is Impact Cleaning, one of Standard Bank’s long-term suppliers. Founded in 2000, the company has weathered tough economic conditions, including the 2008/9 global financial crisis and the COVID-19 pandemic. Reflecting on the hurdles faced by his business, Impact Cleaning’s CEO, Trevor Ackerman, says: “As an SMME, we continue to encounter challenges — from securing financial support to competing with dominant market players and sourcing equipment at the right price. But through dedication and prudent investments, we’ve managed to sustain our business”.

In 2022, Impact Cleaning joined Standard Bank’s ESD programme, receiving strategic support that included business planning, digital transformation and continuous advisory services. As a result, the company expanded its operations and now provides cleaning services to Standard Bank’s headquarters in Rosebank and all 652 branches nationwide. Recently, the company expanded beyond banking clients, securing a five-year contract to provide cleaning services to the offices of a highly valued client in Johannesburg and Pretoria.

The SA commercial-cleaning industry is slowly recovering to prepandemic levels, driven by the return of employees to office spaces. Grand View Research projects that the sector will grow at a compound annual growth rate of 5.4% between 2023 and 2030.

Building a Resilient SMME Sector

Standard Bank’s commitment to SMMEs is ongoing. “Our goal is to enable entrepreneurs start, manage and grow their businesses,” says Mosomane. Beyond financing, the bank offers hands-on support, ensuring small and medium-sized businesses have the tools they need to succeed in an increasingly competitive landscape.

The effect of the bank’s ESD programme is significant. In 2023, 3 508 jobs were sustained, 2 170 new jobs were created, and 893 businesses received support. In addition, the bank disbursed R43.1m in grant funding and R148.9m in loans to help small and medium-sized businesses scale their operations.

Standard Bank's strategic focus on SMMEs demonstrates how big corporates can drive economic in-clusion. By empowering small and medium-sized businesses and encouraging innovation, the bank is actively supporting SA's economic recovery and long-term prosperity.

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