Enterprise and Supplier Development (ESD) Programme in KwaZulu-Natal, Mpumalanga and Gauteng
Sappi’s ESD programme was launched in 2018, to create shared value by building a competitive, credible, and reliable local supplier base. The programme equips small and medium enterprises (SMEs) with training, mentorship, and access to markets, enabling them to achieve operational and financial independence. By localising procurement and strengthening rural economies, the initiative contributes to South Africa’s economic transformation while securing Sappi’s social license to operate.
The programme currently supports 28 active contractors, including 15 direct forestry contractors in harvesting, silviculture, and logistics. SMEs benefit from structured training in HR management, financial systems, costing and pricing, safety and compliance, advanced driver training, and forestry-specific skills such as harvesting and silviculture. Partnerships with institutions like Ithala Bank provide financing, while Sappi ensures long-term contracts and market access.
In FY2025, the programme achieved a forestry-related procurement spend of R182 million, far exceeding its R70 million target. This structured approach has empowered SMEs to participate equitably in the forestry value chain, strengthening livelihoods and building a resilient, inclusive supply chain.
One example is Nonkululeko Zimba, who established Sehlukaniso (Pty) Ltd, a brickmaking business that helps families transition from mud to brick homes. With Sappi’s support, she secured equipment and funding to expand production, positioning her enterprise for future growth opportunities such as supplying RDP housing projects.
Another success story is Exodec 384, a KZN transport company that expanded its fleet through an MOU between Sappi and Ithala Development Finance Corporation. With financing and long-term contracts, Exodec became a key logistics provider to Sappi Forests, demonstrating how the programme enables SMEs to scale and thrive.
“Today, I’m running a successful business because of the support, mentorship and opportunities that came through the programme. Thank you for believing in my potential and empowering me to turn my dreams into reality.” – Nonkululeko Zimba, Vimbukhalo, KwaZulu-Natal.
