Sanlam unlocks the power of women-led SMEs

‘We’re not filling a gap; we’re catalysing a new economic paradigm’ 

Amidst South Africa’s social and economic challenges, Sanlam continues to  invest in an often-overlooked powerhouse: women entrepreneurs. The potential impact is significant — especially considering that small and medium enterprises (SMEs) account for 98.5% of South Africa’s formal businesses and 34% of its GDP. 

The financial services giant is actively reshaping South Africa’s economic landscape by empowering women-led businesses and traditional savings groups through innovative programmes and far-reaching initiatives. 

One of the initiatives is the Sanlam “Re Basadi” Enterprise and Supplier Development (ESD) Programme, the Sanlam Foundation’s first ever ESD programme that focuses exclusively on Black women-owned SMEs. “This programme is our commitment to addressing the unique challenges women entrepreneurs face,” says Nozizwe Vundla, Head of the Sanlam Foundation.

This Enterprise and Supplier Development (ESD) programme is implemented by Black Umbrellas and is structured into three tiers: Masakhe, a six-month runway for early-stage businesses; Siyakhula, an eight-month growth accelerator for established businesses; and Asindize, a twelve-month high-potential business catapult. 

In addition to funding opportunities, participants receive expert mentorship, business coaching, financial education and networking opportunities. This comprehensive support system aims to address the multifaceted challenges faced by women entrepreneurs, from limited market access to lack of social capital in comparison to their male counterparts.

Sanlam’s vision extends beyond individual businesses to encompass traditional community savings groups or stokvels. “In South Africa alone, the stokvel sector is estimated to be worth R50 billion, comprising an estimated 800 000 groups and 11 million members,” Vundla explains. “We see this as an untapped reservoir of economic potential.” The Sanlam Leruo ESD Programme is therefore designed to empower stokvels to maximise their savings and investment potential.

Early-stage entrepreneurship rates in South Africa are 3.5 times lower than the global average, Vundla notes. “By focusing on women-led businesses and community savings groups, we’re not just filling a gap — we’re catalysing a new economic paradigm.”

In addition, from an investments perspective, the South African SME Debt Fund managed by Sanlam Investments has, for over a decade, provided debt funding to established small-to-medium businesses that struggle to obtain funding through traditional channels

“The fund recognises that it has a crucial role to play in social and economic transformation in the country – in fact, it is crunch time for business in South Africa,” says Vukile Themba-Mketo, Senior Portfolio Manager in Sanlam Investments’ Private Debt team. “The aim is to ultimately create a better financial future for everyone, and job creation in the SME sector is the genesis of this future.”

These initiatives and many others are part of Sanlam’s collective purpose, which is to empower generations to be financially confident, secure and prosperous.  At the heart of our purpose is a journey towards long-term sustainability for South Africans, focused on people, planet and profit which is used for impact. 

Below are profiles of some of the women whose small businesses have benefited from Sanlam’s empowerment initiatives.

“Becoming an entrepreneur wasn’t a straight path. After high school, I moved to Switzerland where I lived, worked and studied, earning two diplomas in Hospitality Management from the Business Hotel and Management School (BHMS) Luzern and a BA in Global Business Management from Robert Gordon University. I then applied for jobs and attended interviews, but like many other graduates in South Africa, securing employment proved elusive.

Faced with this stark reality and the limitations of traditional employment avenues, I decided to forge my own destiny. In 2018 I founded BAAB Media Group, an award-winning digital marketing agency. Our mission? To create an environment where AI, digital and humans thrive together. South African businesses have a responsibility to contribute to national and global development, and we believe digital marketing is a powerful tool to achieve this. 

The impact of benefiting from the Sanlam Re Basadi Enterprise and Supplier Development (ESD) programme has been profound — not just on me but on the women around me. Through our supply value-chain, we’ve created over 20 jobs. I’ve gained access to markets I never thought possible and been in rooms with inspiring leaders whose humility and passion have taught me valuable lessons. 

As women, we inspire by not only leading but also bringing others along on our journey; it is through that pipeline that women entrepreneurs can thrive in this country. In a country where women are often breadwinners, we need to look at SMEs as job creators and strategically harness entrepreneurship as a tool to solve unemployment. The Sanlam Foundation’s collaboration with Black Umbrellas is an example of just that — empowering women entrepreneurs through mentorship, e-learning, funding readiness and networking opportunities.

One thing I want other women to know is that South Africa is poised to become the core fundamental operation of the global digital economy. Even if your business isn’t inherently digital, embracing digital strategies and innovation is intricately intertwined with your success. My story proves that your journey from rejection to resilience can inspire and empower others.”

“As a seasoned player in the entrepreneurial ecosystem, I founded the Funds for Women stokvel seven years ago, while conducting my MBA research on women entrepreneurs and finance. With a contribution of just R150 per month from each of the members, the stokvel has raised more than R1 100 000. Funds for Women has since grown to be more than just a saving club — it is a catalyst for entrepreneurship and investment for our members. 

The stokvel comprises about 150 women who want to create a better future for themselves and their children. The funds generated by the stokvel have been gaining compounding interest over the years. The club plans to start investing, venturing into entrepreneurship and to create solutions for women SMEs, starting with their own members.

I came across the applications for the Sanlam Leruo Programme on LinkedIn. We were thrilled to be accepted, and even more thrilled that the Sanlam Foundation acknowledged the power and importance of stokvels in the financial landscape.

Our involvement in the programme contributed to the development of our constitution, which was something we had been struggling with since inception. Now we have clear rules and regulations as a benchmark for all members. 

But the benefits went beyond just documentation. The process of updating our constitution through late-night meetings brought us closer as members. Most of the women in our group are people I’ve never met in person, yet we’ve been on this incredible journey together for seven years. It reinforced the commitment and effort that each woman puts into our stokvel, and I truly value the continued efforts of each member. 

We need more of this. There is power in collaboration and as women, we need to create our own solutions and find more ways to work together. I believe many of our problems can be solved in this way. As stokvels, we have a voice and the potential to bring about change. As women, we need to continuously look for new and innovative financing solutions.”

“We support good health and well-being through organic food production while empowering teenage girls and unemployed women. We grow vegetables to produce a condiment called Babalaz Sauce, rounding off R1 from each of our packaged products. This goes to Grade 10 scholarship vouchers because we know children are the future of our world. Our vision is to create a global family that empowers pupils, strengthens the socio-economy and enables people to care for each other. 

When I signed a deal with Shoprite and Checkers, the prospect of scaling up my business became real — as did the realisation of the risks involved. Needing support, I approached Black Umbrellas to house TNOTSA. When I didn’t have the budget to fund the transformation process, the Sanlam Foundation came to my rescue with an opportunity to join the Siyakhula growth accelerator programme, which is one of the streams of the Sanlam Re Basadi Enterprise and Supplier Development (ESD) programme. Let me tell you, it has been worth every rand! In 2025 we will be penetrating the export markets. 

Globally and in South Africa, there is an untapped market for women’s underserved needs and to purposefully integrate them into the full value chain to overcome numerous challenges and societal barriers. Sanlam ensures that women are equipped to participate in the economy fully and their initiatives help bridge these gaps and create economic opportunities for women, girls and their families. 

People value authenticity, strategic thinking and expertise. My journey with the Sanlam Foundation has taught me that people listen to smart, informed women. I now understand the importance of being visible, and confidently encourage other women to showcase their knowledge, products, and services. 

My advice: find your passion, seek supportive networks and stay fascinated. Learn as much as you can and never settle for the status quo. As women, we have superpowers — our ability to show empathy, nurture and cultivate others and be enthusiastic. 

Contributing to the growth and success of other women brings immense satisfaction and helps to bridge the gender financial inclusion gap, representing a powerful force for economic growth and progress. When women are empowered, families and communities benefit and societies are strengthened.”

“As a certified professional accountant, risk specialist, and MBA graduate from the African Leadership School of Business, I’ve always believed in the power of women to drive change. This belief led me to found Women Navigating the Future Network, a not-for-profit organisation dedicated to empowering women to be agents of change in boardrooms and communities alike. 

We do this through networking, entrepreneurial hubs, NPC capacity building, and financial inclusion initiatives like our modernised stokvel, which puts a contemporary twist on these traditional saving clubs. Modernised stokvels have evolved to focus on long-term investments rather than just savings, distributing earnings at the end of the year. 

Embracing modern technology, we utilise apps that enable members to view group activities transparently and manage distributions online, which reduces the risk of theft associated with physical withdrawals. This innovative approach enhances the traditional stokvel model, promoting financial growth, security, and convenience for members.

Empowering stokvels and uplifting women is crucial for economic transformation in South Africa, especially as this drives financial inclusion, social change and community development. Financial empowerment is key to solving social problems. 

Our involvement with the Sanlam Leruo Enterprise and Supplier Development (ESD) Programme has positively impacted our organisation by providing the structure and guidance we needed to take our stokvel to the next level. We now have a constitution that governs our operations. 

The programme, which is implemented by Zevoli Growth Partners, also opened our eyes to new investment opportunities, particularly in farming. From the funds generated, the members have acquired and are renting land for their agricultural projects. It extends beyond financial returns, as we are contributing to food security and job creation in our communities. It’s a perfect example of how financial empowerment can lead to broader social impact. 

We’ve launched the “One Home One Garden/ Food from Our Soil” project, which promotes sustainability, food security, and support for disadvantaged families. We’re also providing capacity-building and compliance support to NPCs, helping them maximise their impact in communities.

To all the women out there looking to make a change, I say: Start. Success lies in starting, and failure is just a stepping stone to success. I wish I had known this earlier in my journey. Every setback is a lesson and every challenge is an opportunity to grow.”

“For the past eight years, Linea Capital has been a small team with a big dream: to respond to the lack of alternatives available to those building and growing small businesses in South Africa. SMEs drive job creation in South Africa and our focus is on supporting founders, particularly women, with growth capital, so they can create sustainable jobs and address key needs such as healthcare, education and food security. 

Traditionally, options for raising growth funding are limited to bank loans, which are largely inaccessible — or venture capital, private equity and angel investors — which typically want a share of the company. Many funders are happy to supply capital but demand up to 80% of the company in return. This drains the wealth of the founders and removes the incentive to drive business growth. 

After studying in the US, my co-founders and I created a revenue-based financing model that provides growth funding without fixed-interest payments and without taking ownership from the founders. Our vision is to preserve equity and keep it in the hands of those building businesses, helping SMEs, the country’s big job creators, grow and overcome the costs of being small.

At Linea, we’re co-founded by women, and we seek out businesses founded or led by women, with women staff and/or consumer bases. There is a large gender funding gap, and our revenue-based model preserves equity and empowers women, allowing them to grow without diluting ownership. 

The SME Debt Fund managed by Sanlam Investments has been instrumental to our success, providing funding support through our revenue-based model. They’ve helped us fund businesses that are too small for traditional funding and as the first South African financial institutions committed to funding us, opened up conversations with other funders, including international ones. The credibility Sanlam brings has been invaluable.

Linea’s success has been a dream come true, but building a business takes much longer and requires more energy than most expect. My advice to founders is to think of it like building a house: have a clear plan, work on your resilience, and partner with like-minded people who share your vision. Building a business can be lonely, so surround yourself with a supportive community and find a rhythm that allows you to care for yourself and your loved ones.”