As part of the government’s efforts to ensure the growth and sustained development of small to medium-sized enterprises (SMEs), it introduced enterprise and supplier development (ESD) requirements. ESD programmes fall under the Broad-Based Black Economic Empowerment (B-BBEE) compliance for large corporations operating in South Africa.
The purpose of ESD is to “promote a conducive environment for creation of sustainable partnerships between Corporate South Africa and black entrepreneurs to enable access and transformation of the value chains.” One of the various ESD programmes in South Africa is that of Sun International.
What is Sun International?
Sun International is a South African gaming and hospitality company that develops and operates casinos, hotels, and resorts, and provides online gaming and entertainment services. According to the company, as of 2024, it has funded a total of 102 ESD beneficiaries, resulting in approximately R50,1 million invested in supplier development and R14,8 million invested in enterprise development.
In this article, we look at Sun International’s ESD programme, how it supports SMEs and how small businesses can apply for it.
Sun International Enterprise and Supplier Development Policy
Through its ESD programme, Sun International identifies and assists sustainable startup businesses and provides various support mechanisms. These include capital facilitated at interest-free rates and repayable over viable periods; managerial skills transfer; mentorship; financial expertise; or rent-free offices.
The objectives of the programme are:
- Support the introduction and development of Black-Owned SMEs within its supply chain· Offer consistent and structured application of E&SD projects
- Focus on the sustainability of the E&SD beneficiary organisations· Support the objectives of the National Development Plan 203
- Support strategic category management plans
- Achieve meaningful value through effective use of E&SD funds
The key supply categories are:
- Casino and gaming
- Consulting services
- Waste removal services
- Fixtures, fittings and equipment
- Food and beverage
- HR services
- IT services and supplies
- Professional services such as architecture, landscaping and security etc.
- Logistics
- Maintenance supplies and services
- Marketing services
- Operating supplies and equipment
- Travel services
Benefits of Joining the Sun International ESD Programme
Beneficiaries within the ESD programme receive the following benefits:
- A structured approach to the review and selection process
- Integrity and transparency in assessing applications
- A comprehensive implementation plan towards long-term sustainability of the beneficiary organisation
- Business development services as part of the development plan
- Training and skills transfer opportunities
- Mentorship and coaching
- Monitoring and evaluation against agreed business deliverables
- Opportunities for access to markets within Sun International business units
- Extended business networking opportunities
- Inclusion in relevant Sun International supplier activities or events
- Exposure through endorsement by Sun International
- A minimum 3-year development agreement between the Parties
- Minimum 3-year supply agreement between the parties (Supplier Development only)
Sun International makes a clear distinction between enterprise development and supplier development beneficiaries. An Enterprise Development (ED) beneficiary refers to the development of a company or individual that is not currently one of our active suppliers. And a supplier development beneficiary refers to a beneficiary who is currently one of Sun International’s active suppliers.
Sun International ESD Application Checklist
The following checklist serves as an indicative guide to the documents required for Sun International to assess the stage of development that your business is in. A minimum score of 65 is required to proceed with the funding assessment.
Please submit the following supporting documentation with your application:
- Business proposal (which should include the following)
i) Company introduction and overview of funding requirements
ii) Indication of how much funding you have invested in the business, and if you have public liability insurance
iii) SWOT, market analysis and competitor analysis
iv) Company organogram
v) Sales and growth strategy
vi) Quality management plan
vii) Risk management plan - 2 years Financial Statements (preferably audited), if a start-up, then 36-month cash flow projections and offtake agreements will suffice
- Management accounts
- 36-month cash flow projections
- SANAS-approved B-BBEE certificate or sworn affidavit
- Company profile
- Bank confirmation letter
- CV(s) and ID(s) of founder(s) and key personnel in the businesses
- VAT certificate
- CIPC registration and shareholder documents
- Quotes for the items you require the funding for
- Reference letters from 2-3 of your biggest clients
- Any offtake agreements or letters of intent from other clients
- Community development plan indicating the planned initiatives to develop the community you operate in.
Furthermore, provide an indication of whether:
- Does your business use any environmentally friendly products or processes
- If the business has any form of import replacement or localisation
- Does the business have any documented HR policies and procedures (such as training plans, disciplinary policy, recruitment policy, etc). If so, please submit copies thereof
- If your business has any industry certificates and submit copies thereof
- If your business has any functional experts, such as tax, bookkeepers, etc.
- If your business has match funding from another organisation
Qualification Requirements for Sun International ESD Programme
An entity will qualify for ESD support from Sun International if it meets the following requirements:
- ≥ 51% Black owned EME with a valid B-BBEE affidavit
- ≥ 51% Black owned QSE with a valid B-BBEE affidavit (Sun International requires QSE beneficiary to meet the requirements of Empowering Status
- Having a minimum trading history of 2 years
- Provide a product or service directly related to the Sun International supply chain
- Demonstrate the ability to become sustainable within the contractual period
- Demonstrate capacity to repay all business loans within the contractual period
- Demonstrate capacity to promote job creation through efficient application of development assistance
Note, Sun International will only enter into agreements with suppliers where a regular procurement opportunity exists for the duration of the contractual period.
To apply, download the application form and add all relevant details and attach the necessary documents. Send the completed application and documents to procurement@suninternational.com.
