Absa and Heineken Beverages have announced a joint R1.2bn funding initiative aimed at transforming the landscape for Black-owned small and medium-sized enterprises (SMEs) in South Africa. The programme seeks to strengthen access to capital, governance support, and scalable business growth, addressing the challenges facing SMEs in a difficult economic climate.
The SME sector contributes approximately 34% to South Africa’s GDP and provides 60% of national employment. Recent reports indicate mounting financial pressure, with over 620 business closures recorded in 2025 and GDP growth revised to below 1%.
Court-enforced liquidations have highlighted the growing distress among SMEs, making targeted interventions increasingly urgent.
The R1.2bn initiative comprises R600m in Enterprise and Supplier Development (ESD) funding from Heineken, administered by Absa, and an additional R600m in co-lending for qualifying SMEs from Absa.
The programme is expected to support more than 100 Black-owned SMEs, particularly those facing persistent barriers to mainstream finance.
Heineken’s broader Ukukhula Fund, which includes the Supplier Development (SD) Fund and the Growth and Localisation (G&L) Fund, underpins this initiative.
The SD Fund allocates R400m over five years to historically disadvantaged suppliers, including Black-owned and Black women-owned businesses, across the alcoholic beverages value chain.
The G&L Fund contributes R200m to develop local enterprises within Heineken’s supply chain, encourage import replacement, and strengthen national economic resilience.
Beyond funding, participating SMEs will receive business development services, financial literacy training, and integration into national markets via Absa’s ESD platforms and agri-sector networks.
Absa will contribute R1.5m annually to Heineken’s business development initiatives, and R100,000 to financial education programmes.
Stephen Seaka, managing executive, Public Sector and Growth Capital Solutions at Absa CIB, emphasised the broader objectives:
“This transaction reflects our commitment to embedding governance, transparency, and measurable outcomes into transformation finance. Through this funding deal, we are enabling scalable social impact by driving supply chain access, localisation, and financial inclusion.”
Vignesh Subramani, managing executive (interim): SME Business at Absa Business Banking, added:
“Small businesses are the heartbeat of our economy. This partnership not only unlocks capital for Black-owned SMEs but also provides an ecosystem of support to help them scale and compete sustainably. Transformation is most effective when it is practical and measurable, and this initiative is a step in that direction.”
The collaboration between Absa and Heineken signals a strategic effort to promote inclusive economic growth, financial inclusion, and long-term resilience for Black-owned businesses in South Africa.
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