A Thriving World
We want a thriving world where incomes and quality of life are growing. Businesses are an engine of job creation, market development and economic growth. Yet in many communities we are part of, people – especially women – face the challenges of unemployment, lack of access to markets and sometimes basic services. The decisions we make can help shape their futures positively. We share with society the opportunity to build a thriving world where incomes and quality of life are growing. Therefore, we have a shared imperative to accelerate growth and social development through our value chains.
We are building global programmes to promote entrepreneurship within and beyond our value chain. We will focus our efforts to target women, those with the lowest income and disadvantaged groups.
We will accelerate growth and social development by promoting enterprise development and entrepreneurship, within and beyond our value chain.
Businesses are an engine of job creation, market development and economic growth. Yet in many communities we are part of, people – especially women – face the challenges of unemployment, lack of access to markets and sometimes basic services. The decisions we make can help shape their futures positively. We share with society the opportunity to build a thriving world where incomes and quality of life are growing. Therefore, we have a shared imperative to accelerate growth and social development through our value chains. Growth of incomes and quality of life is what we’re working towards because we’d like to see ordinary South Africans thrive.
Under this imperative SAB will support more than 30 000 small enterprises through its flagship entrepreneurship programme, SAB KickStart, Customer Business Development Programme (CBD), distribution programmes such as the Owner Driver Scheme and in the agricultural sector through support of emerging farmers.
Transformation and Empowerment
Long before democracy in South Africa, SAB focused on developing people, implementing progressive equity policies and innovative empowerment programmes. We have come a long way since the early days and we understand the responsibility that comes from being a leading corporate citizen. That is why we are constantly striving to be a force for good within society.
Broad Based Black Economic Empowerment – SAB a Level 3 BBBEE contributor
SAB understands that the privilege to operate as one of South Africa’s leading companies carries an inherent obligation to demonstrate leadership in every dimension of the business, including the role that it must play in supporting the progress of South African society. The company believes that what is good for the nation is ultimately good for business and is determined to play a progressive role in the context of 21st Century South Africa.
SAB’s roots are firmly grounded in South Africa and it has been actively driving black economic empowerment since the 1970s. SAB is a strong supporter of preferential procurement practices and has a structured focus on identifying, mentoring and encouraging local suppliers.
SAB has undertaken to demonstrate a commitment to BBBEE in line with its strategic objectives, its drive to maintain its license to trade and its commitment to contribute positively to society. In the latest annual BBBEE verification in August 2013, SAB achieved a Level 3 Contributor to BBBEE status.
Employee Value Proposition
SAB’s history in employment equity dates back to the 1970s as the first company in South Africa to implement preferential procurement. We have been a leading agent for change ever since.
We have a strong focus on activities at both national and regional levels that include the following:
- Enterprise development
- Job creation
- Community wellbeing
Announced in June 2009, 8.45% of the company’s shares were placed under black ownership as a part of the SAB Zenzele BBBEE transaction. Valued at R7.3 billion, this transaction was a ground-breaking move towards broad-based black economic empowerment.
Three constituencies have been included in the rewarding of these benefits:
- SAB employees
- Black-owned beer and soft drink retailers
- Historically disadvantaged communities
SAB Zenzele has offered opportunity to 60,000 new shareholders that come from black majority-owned businesses or who are black individuals, themselves.
Encouraging Leadership Behaviour
As an employer we firmly believe that successful people build successful businesses. This is why we put so much effort into finding the best talent, people with both internal drive and advanced skills, in order to create situations that provide a challenging and rewarding work environment. It is in this kind of environment that <many of SA’s top executives have honed their skills at SAB.
History has shown us that great companies anticipate, embrace and lead change as a source of opportunity. We believe that change is essential in driving growth and progress in the 21st century. As we continue to drive change in business we are also nurturing change from inside SAB as we embrace new leadership behaviours that will unleash the potential of our people and support our long-term and sustainable growth.
The SAB KickStart competition, introduced in 1995, is designed to help address South Africa’s need to create sustainable jobs through supporting the development of high impact young entrepreneurs. To date the programme has invested more than R90-million in supporting thousands of young entrepreneurs between the ages of 18 and 35 through a comprehensive package of business development support, including business skills training, mentorship and grant capital. This outcomes based support model has proven to assist young businesses to surpass their expected survival of no more than three years.
In 2015, SAB KickStart was expanded into three enterprise development initiatives. SAB KickStart Ignite, SAB KickStart Boost and SAB KickStart Elevate, each target youth-owned businesses with different areas of focus and at varying stages of operation.
1. SAB KickStart Ignite
This initiative targets those young entrepreneurial ‘makers’ of innovative products or services, and who through support from the programme, including incubation, grant funding and business support, can act as a pipeline for SAB KickStart Boost.
2. SAB KickStart Boost
The Boost initiative will support and grow youth businesses within key local industries that have the ability to create high numbers of jobs.
3. SAB KickStart Elevate
Elevate is aimed at young established businesses requiring further acceleration in order to become suppliers to big business in South African through a combination of business development support, mentorship, competitive, non-collateral and low interest loans offered by the programme.
This three-pronged approach and commitment to enterprise development is aimed at supporting the emergence of strong and sustainable businesses able to make a valuable contribution to the country’s economic transformation. This will be done by providing a combination of support including business skills training, business development support, mentorship and grant capital, as well as low interest seed capital loans in the case of SAB KickStart Boost and SAB KickStart Elevate.
For more information, please visit www.sabkickstart.net
Customer Business Development (CBD)
This national retailer business training programme is aimed at improving tavern owners’ business skills, educating them on how to run a profitable and sustainable business in a socially responsible manner.
CBD seeks to build and enhance tavern owner business skills and SAB also aims to raise trader awareness of their obligation to trade responsibly, a requirement to maintain their license to operate and to help minimise the harmful effects of alcohol abuse in society.
CBD is an extension of SAB’s Mahlasedi Taverner Development Programme which ran from 2004 until 2009 and reached more than 16 000 taverners through an investment of R54-million. Tavern owners that participated in Mahlasedi reported an increase in business performance.
SAB believes that local licensed traders make a valuable contribution to the success of SAB as a business and towards the economy of the country. CBD allows the company to empower retailers with the skills necessary to maintain and grow sustainable, profitable and responsible businesses, which will continue supporting their families and improving others’ lives through the creation of employment.
Tavern owners are given valuable information and skills on how to trade responsibly as a means of minimising the harmful effects of alcohol abuse within their communities. This is provided through SAB’s Responsible Trader Programme (RTP), a high impact and holistic approach to engaging liquor traders on alcohol abuse and the harm it causes communities, is a first of its kind in South Africa.
We believe that by empowering South Africans, they in turn can empower others, which results in a better quality of life for everyone. The SAB Foundation was founded in 2009 as a beneficiary of SAB’s broad based black economic empowerment deal, SAB Zenzele, in which it holds 18% shares.
The primary focus of the SAB Foundation is to inspire entrepreneurship as a means to growing the South African economy. This in turn creates jobs and ignites a feeling of inspiration among others to do the same. The foundation’s target beneficiaries are women, South African youth, people living in rural areas and those living with disabilities. Investment is made into businesses that will benefit the target beneficiaries.
The investment programmes are the Tholoana Enterprise Fund and the Social Innovation Awards.
Launched in 2011, the SAB Foundation Social Innovations Awards recognises and also invests in products and services that are “pro-poor” and address the challenges that our target beneficiaries face.
Since inception the Awards have invested R13.2 million in 49 innovations.
We celebrate the pioneering spirit of South Africa and will continue to play our part in building this in years to come.
SAB has a well-established history of supporting and developing the local agricultural sector with a strong focus on emerging black farmers.
Taung Barley Farmers Programme
Beginning in the early 1990s, SAB implemented its Taung Barley Farmers Project to encourage local barley production, create a broad based supply chain for SAB and create a sustainable source of income for smallholder farmers. The initiative has grown to support more than 120 smallholding barley farmers whose lives have improved significantly as result.
To provide the company with the future malting capacity required to meet consumer demand for its brands and to reduce the amount of malted barley it imports, SAB is constructing a R700 million Maltings plant next to its Alrode Brewery in Gauteng. The construction of the new plant will see the company increase its requirements for locally sourced barley by more than 30%.
To support the company’s future requirements for locally sourced barley, SAB has established its Go Farming initiative. The initiative will support the development, growth and sustainability of emerging and small scale barley and maize farmers to develop a sustainable, reliable and competitive local agricultural supply-chain for the company.
KZN Maize Project
SAB in partnership with the Department of Agriculture set up a joint venture in 2011 that saw the company procuring locally grown maize from 98 farmers in Bergville, KwaZulu-Natal. The project has expanded to the uThukela and Amajuba districts of KZN.
The company’s focus on outsourcing key services to local businesses, and thus creating wealth for new players, is not new. In 1987 SAB introduced its owner-driver project, which saw former employees of SAB form their own companies to distribute SAB’s product brands to the trade. More than 60% of SAB deliveries are carried out by owner-drivers. The programme produces drivers who are empowered, develops sustainable businesses and jobs, and allows SAB to develop superior routes to market. Well over R3 billion has been invested in this project since inception. SAB currently has contracts with more than 400 owner drivers who employ approximately 1200 staff members.
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