The entrepreneurship pillar of RMA’s Social Impact Strategy reflects our sustainable approach to development and collaboration with key stakeholders. The intent is to support businesses during their formative years, enabling them to scale, create more jobs and subsequently boost the local economy. Helping entrepreneurs across South Africa will help lead to significant socio-economic growth.
Most notably, RMA has contributed to entrepreneurship development in the following ways:
- R19.6 million total spend on Enterprise Development (ED) in 2020
- R39.3 million total spend on Supplier Development (SD) in 2020
- South Africa’s first 100% black women-owned investment management firm, Prowess, now has R8.9 billion AUM after receiving a bond mandate and support from RMA in 2012
Our Entrepreneurship projects are divided into Supplier Development Initiatives and Enterprise Development Initiatives, which address the unique needs of each business. In the last few years, over 20 businesses and partners have formed part of these ongoing initiatives and benefited from fruitful entrepreneurship opportunities.
Enterprise Development Initiatives (ED)
Our Enterprise Development programme entails a 3-year period in which RMA covers a large portion of the beneficiaries’ operating and capital expenses. Beneficiaries participate in entrepreneurship programmes and training to eventually become fully independent in terms of operations and finances.
South Africa has one of the highest failure rates for SMMEs, with 5 out of 7 failing in the first year. Considering these circumstances, RMA is on a mission to improve the success rates of enterprises by encouraging strategic entrepreneurship and innovation that uplifts their surrounding communities.
We are cognisant of the low levels of entrepreneurship and high failure rates of 100% black-owned and emerging businesses in South Africa. One of the many ways we have addressed this issue is through donating R4.5 million towards eNgcobo Poultry Project, a sustainable farming cooperative supporting 10 beneficiaries in the disadvantaged rural communities of the local municipality.
In addition, RMA collaborated with the Black Umbrellas, a non-profit business development service, to launch the Soweto Incubator. In 2020, this entrepreneur incubation project contributed R2.5 million towards funding 10 small businesses in the townships within Soweto, Tembisa, Alexandra, Diepsloot and Cosmo City in Gauteng. Practical entrepreneurship training was also provided. As a result, none of these businesses reported any job losses in 2020, regardless of the Covid-19 pandemic and challenging socio-economic conditions.
Current Enterprise Development beneficiaries include:
- Orthotists
- Poly Orthotics Prosthetics & Trading
- Setwaba Orthotist and Prosthetist
- Moroka Orthopaedic Services
- Partnerships with National Union of Mineworkers (NUM) and Mineworkers Development Agency (MDA)
- eNgcobo Poultry Farm
- Steynsdorp Community Project
- Partnerships with Steel and Engineering Industries Federation of Southern Africa (SEIFSA)
- Co-branded SEIFSA-RMA Innovation Hub
- Supplier Development Programme for SEIFSA employees
- Other Partnerships
- Right Play
- Mogatladi Brick Manufacturing
- Thusanang Enabling Support Services
In an effort to keep investing in entrepreneurs, RMA has also partnered with several other SMMEs beyond this list, including those associated with the Black Umbrellas.
Supplier Development Initiatives (SD)
The ultimate goal is to support supplier businesses with BEE funding during their first 3 formative years. As part of our commitment to bolstering entrepreneurship, RMA covers a significant portion of the beneficiaries’ operating and capital expenses.
The support we provide to SMEs in our supply chain enables them to create more jobs, achieve higher revenues and reach sustainable operating levels that are independent of our support. RMA provides support in the form of salaries, office rental, IT equipment, furniture, travel, and other office operating costs.
To date, one of our most promising projects is a partnership with The Leaders in Motion Academy (LiMA), a learning institution for digital creatives. Up to 200 small businesses in the South African media and creative industries will receive support.
Supplier Development beneficiaries include:
- Black Owned Asset Managers
- Prowess Investment Managers
- SummerPlace Equity Partners
- Black Owned Brokerages
- Eagle Financial Solutions
- Malwande Financial Planning
- Songiya Wealth
- Vukheta Risk Services
- KNN Investments and Consulting
- RFA Assurance
- Strategic Initiatives
- Pantha (Data Strategy Execution)
- Empowerfin
- SENA
- Other Partnerships
- The Leaders in Motion Acadamy (LiMA)
- 22 on Sloane
- YMS Medical Supplies
Supply chain management plays a critical role in ensuring that quality goods are available to businesses and services in South Africa. This makes it an integral aspect of our corporate social responsibility initiatives and social impact strategy, particularly under the pillar of entrepreneurship.
The Social Impact Strategy & Corporate Social Responsibility
RMA’s Social Impact Strategy is designed to promote economic growth, uplift marginalised communities, and alleviate poverty in South Africa. It is a comprehensive plan with measurable business outcomes and clear social impact.
Through our commitment to Enterprise and Supplier Development, and Socio-Economic Development, we can make immediate social impact within a range of industries. This creates long-term value for all stakeholders and enables RMA to fulfil our corporate social responsibility
The Social Impact Strategy Consists Alongside Entrepreneurship
- Responsible Investing
- Entrepreneurship
- Financial Education & Inclusion
- Innovative Skills Development
- Diversity & Inclusion
RMA’s key stakeholders include:
- Customers
- Employees
- Investors
- Communities
- Regulators and Government
- Intermediaries (brokers and healthcare workers providing services on behalf of RMA
Discover the other key pillars of our Social Impact Strategy
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Responsible Investing
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Financial Education &
Inclusion
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Innovative Skills Development
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Diversity & Inclusion
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RMA will contribute R125 million over a period of 10 years to responsible investment in South African businesses.
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Award-winning personal finance coach, Mapalo Makhu, ran a successful financial education campaign for RMA.
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More than 250 persons with disabilities benefit from the Vocational Rehabilitation Programme that forms part of our skills development initiative.
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Given the socio-political context of South Africa,
diversity and inclusion is critical to RMA’s social Impact Strategy.
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In the last few decades, leading businesses have understood that there is more to be done than simply maximising profits for shareholders and executives. Rather, there is an overarching corporate social responsibility to do what’s best not just for their companies, but for society and the environment.
Learn more about RMA’s Social Impact Strategy and projects by downloading our digital magazine.