MTN's Xlerator: A Game-Changing Enterprise Supplier Development Program

MTN South Africa has unveiled its Xlerator initiative, an ESD (enterprise supplier development) program aimed at increasing its procurement spending by ZAR4 billion (US$209 million) over a two-year period, with a focus on supporting 51 percent black-owned Small, Medium, and Micro Enterprises (SMMEs).

The Xlerator program has ambitious goals, including doubling the number of SMMEs on MTN's supplier database.

The program intends to uplift these businesses by offering assistance in business strategy development, skills enhancement, and improved access to funding opportunities.

Empowering Local Businesses Through an Enterprise Supplier Development Program

This initiative is open to SMMEs that meet specific criteria: they must have been operational for at least six months, be at least 51 percent black-owned, generate an annual turnover of ZAR500 million (US$26 million) or less, and have key positions within their daily operations managed by black professionals.

MTN South Africa's CEO, Charles Molapisi, highlighted the significance of the Xlerator program, stating, "MTN Xlerator is a symbol of our unwavering commitment to progress, innovation, and empowerment. We believe in the enormous, unearthed potential within South Africa. At MTN, we believe in the evolution of empowerment and our goal is to transition from a transaction-based supply chain to a values-based one, ensuring everyone enjoys the benefits of a connected world while building a better tomorrow."

MTN has chosen South African SME financing startup, Payabill, as one of the finance partners for the Xlerator program.

Payabill specializes in providing simplified access to funding for South African SMMEs and will be working alongside other selected lenders and banks as part of this significant initiative.

Eli Michal, CEO of Payabill, expressed their excitement about the partnership, stating, "We are excited to have been selected by MTN to partner on its Xlerator programme. Payabill has already paid many suppliers in most sectors chosen by its customers all over the country."

MTN's Xlerator program represents a significant step towards fostering economic empowerment and supporting black-owned SMMEs in South Africa.

Tom Jackson / Disrupt Africa