Enterprise and Supplier Development (ESD) in South Africa is a crucial element of the Broad-Based Black Economic Empowerment (B-BBEE) framework, aiming to rectify historical economic imbalances and promote inclusive growth. Here’s a detailed look at its four main pillars:
This pillar encourages companies to procure goods and services from black-owned and black-empowered enterprises. By doing so, it drives demand for these businesses, enhancing their sustainability and growth.
This aspect focuses on broadening the base of suppliers for corporations by including more black-owned and small enterprises. It promotes a diversified supply chain that is not only inclusive but also resilient.
This pillar aims at improving the capacity and capabilities of black-owned suppliers. It involves training, resources, and transferring critical skills to these businesses to enhance their ability to deliver high-quality goods and services.
Investing in and nurturing of small and medium-sized enterprises (SMEs) to boost their operational efficiency, profitability, and sustainability. This support includes financial assistance, mentorship and access to business networks.
Together, these pillars work to foster a more equitable economic landscape, enabling black-owned businesses to thrive and contribute significantly to the South African economy. The overarching goal of ESD is to create jobs, foster economic growth, and promote a more balanced and fair marketplace.
Edge Growth, established in 2007, was founded on the recognition of Enterprise and Supplier Development (ESD) as a pivotal force for economic transformation and job creation in South Africa. Over the years, the organisation has deepened its understanding and refined its approach, emerging as a leading ESD solutionist in the region.
Mining houses operate across complex peri-urban and rural ecosystems. Our ESD programmes sequence capability-building before capital, then unlock market access and finance to grow durable local supplier bases. Learn more about ESD in mining.
Financial institutions require ESD that delivers B-BBEE compliance outcomes, SME revenue growth and measurable impact across portfolios. We design compliant, investment-grade programmes that dovetail with impact mandates and reporting. See ASISA ESD outcomes.
In fast-moving tech supply chains, ESD must emphasise market access, scale readiness and post-investment support so high-potential SMEs commercialise faster. Explore our tech entrepreneurship insights.
ESD is a B-BBEE-aligned approach that helps corporates build and finance capable SMEs to participate in their supply chains. Done well, it goes beyond compliance to long-term ecosystem value (jobs, localisation, inclusivity). Read our ESD & ESG convergence explainer.
Strategically designed ESD earns ED/SD points while strengthening preferential procurement and supplier diversity. We align programme design to procurement needs so points translate into real supply-chain capacity and performance. See fund/programme outcomes (ASISA ESD, Action ESD Fund).
A typical sequence is: Diagnose (readiness & value-chain mapping) → Design (programme architecture) → Develop (capability-building & market access) → Deploy (fit-for-purpose funding) → Deliver (post-investment support/value creation) → Demonstrate (impact & B-BBEE reporting). See our GIBS White Paper on ecosystem effectiveness.
Experience has proven that only programmes running for 12+ months really show full value-creation and meaningful impact trajectories for participating SMEs (sector/baseline dependent).
We track portfolio-level and SME-level metrics (jobs, revenue growth, localisation, transformation, on-time delivery, capital deployed, graduation into supply chains) and publish annual impact reporting aligned to your mandate. See Edge’s Growth Tracker Platform.
This pillar encourages companies to procure goods and services from black-owned and black-empowered enterprises. By doing so, it drives demand for these businesses, enhancing their sustainability and growth.
