South Africa: Sappi boosts local enterprise with MSME investment

Zawya

02-07-2025

South Africa's rural and peri-urban areas are home to a vibrant informal economy - an enterprising ecosystem of spaza shops, street vendors, barbers, mechanics, and countless micro-enterprises that shape daily life in the townships. It's a space defined not only by survival, but by creativity and community-rooted resilience. And there's a name for it: kasinomics. Coined by South African marketer and author GG Alcock, kasinomics speaks to a R1tn economy built on grit, trust, hustle, and lived experience.
With support from Sappi, Baleti Estate in Mpumalanga has diversified into honey production—selling at Ngodwana Farm Stall and gaining skills through ongoing training and certification.
Mpume Gumede was able to invest in heavy machinery needed to secure a contract at Stanger Mill.
On International Micro-, Small and Medium-sized Enterprises (MSME) Day (27 June), Sappi Southern Africa is proud not just to acknowledge the impact of kasinomics - but to be an active partner in sustaining its momentum and unlocking its true potential.
'MSMEs are the oxygen of the South African economy,' notes Lesiba Lamola, regional ESD sourcing manager at Sappi. 'They create jobs, they drive innovation, and most importantly, they uplift entire communities. Our mission has been to move beyond handouts and into meaningful partnerships.'
That mission is reflected in the Abashintshi programme launched in 2018, which introduced 120 young people to Asset-Based Community Development (ABCD) principles, equipping them with the skills and confidence to spot opportunities and ignite enterprise in their own backyards. From that initiative, a wave of local entrepreneurs has emerged - each with a compelling story.
In Hlokozi, KwaZulu-Natal, Patrick Gcina Khumalo evolved from a self-taught welder into the owner of a certified carpentry and welding business. With tools, equipment, training, and ongoing mentoring from Sappi's Enterprise and Supplier Development (ESD) team, Patrick now takes on larger contracts and employs others in his community. 'This support has transformed my business, giving me the confidence to take on bigger projects, build a better future, and even create jobs in my community,' he says.
Equally inspiring is Nonkululeko Zimba, based in Vimbukhalo near Winterton. A former Abashintshi participant, she used her ABCD training to launch Sehlukaniso (Pty) Ltd, a brickmaking business that helps community members build dignified homes. With funding and technical support from Sappi, her business has expanded its reach - and its purpose. 'I still can't believe my dream has come true,' Nonkululeko shares. 'This is how I bring change to my community.'
Mhlekhazi Phoswa, a local contractor, has expanded his operations thanks to a five-year service contract awarded by Sappi.
Nonkululeko Zimba's brickmaking enterprise received a boost with brickmaking equipment donated by Sappi's Enterprise Supplier Development (ESD) Department.
Sappi's broader ESD strategy, formalised in 2018, continues to catalyse grassroots development with tangible outcomes. In FY2024 alone, the company spent R372m procuring from SMEs - surpassing its target by R250m - while sustaining over 1,500 jobs. A further R57m was spent through subcontracted SMEs, and R900,000 was invested in SME training and development.
The results speak volumes. From logistics to construction, lives are changing. Through a strategic partnership with the Ithala Development Finance Corporation, transport entrepreneur Sanele Mkhize took ownership of three new Mercedes-Benz trucks valued at R11.6m. Meanwhile, Mpume Gumede of Thuba Construction was able to acquire heavy machinery after being awarded a five-year Sappi contract to transport bagasse at the Stanger Mill. 'I cried tears of joy when the loan was approved,' she says. 'Now I know I'll meet Sappi's specs and grow my company.'
The company's renowned Khulisa programme is an anchor of inclusion across the forestry value chain. In 2024, over 4,100 growers delivered 318,116 tons of timber to Sappi operations - resulting in R332.6m paid to these small-scale suppliers. Over 550 of them completed forestry training during the year, covering everything from safety to silviculture management.
Beyond timber, some Khulisa participants - like Baleti Estate in Mpumalanga - have begun to diversify their enterprises. With Sappi's support, Baleti now produces and sells honey at the Ngodwana Farm Stall, while receiving continuous training and certification assistance. 'Our perspective has completely changed,' says director Mandla Mooko. 'Sappi's guidance helped us expand and see new possibilities.'
Patrick Khumalo, owner of a carpentry and welding business, received tools and a converted container workshop through Sappi's support.
Sanele Mkhize, centre white shirt
Back in KwaZulu-Natal, the Inkanyezi Yamahobe Trust in Richmond has grown into a successful community-based enterprise with 468 hectares of timber-producing land. With Sappi's help, they've established market access, improved productivity, and now deliver annual dividends of R40,000 per household - with ambitions to double that figure. 'Sappi's partnership has been a game-changer for us,' says chairperson Thando Nxele. 'It's enabled us to grow, thrive, and contribute meaningfully to the local economy.'
There's also the story of Nhlanhla 'Mhlekazi' Phoswa, who began as a forestry labourer in 1985 and now runs one of the largest silviculture contracting firms in the KZN South region. Awarded a five-year contract with Sappi in 2022, his company, Mhlekazi Forestry, has grown from 50 to 80 employees - all but one from surrounding communities. 'Our goal is to upskill and employ even more people,' he explains.
Through it all, the unifying thread is opportunity - the kind that's shared, earned, and scaled. With 942 MSMEs actively participating in Sappi's supplier value chain, the message is clear: when corporate South Africa builds deliberate, values-led partnerships, transformation takes root.
And that's the spirit of MSME Day - celebrating not just small businesses, but the outsized impact they have in reshaping industries, empowering households, and creating intergenerational legacies.
Because kasinomics isn't just a buzzword - it's a blueprint for a more inclusive future. And together, brick by brick, hive by hive, tree by tree, that future is already being built.