• Companies
  • Economy
  • Energy
  • Markets
  • Entrepreneurs
Business Report

Business Report is South Africa's largest daily financial publication. We provide the best and latest business news across South Africa and the world.

Read more

Sections on Business Report
  • Companies
  • Economy
  • Energy
  • Markets
  • Entrepreneurs
Our network
  • Business Report
  • Cape Argus
  • Cape Times
  • Daily News
  • Independent on Saturday
  • Mercury
  • Pretoria News
  • Sunday Tribune
  • Sunday Independent
  • Star
  • Post
© 2025 Independent Online and affiliated companies. All rights reserved.
Press CodePrivacy PolicyTerms & ConditionsAdvertise with usFeedbackComplaints Procedure
Business Report Entrepreneurs

Thungela and Absa join forces to empower SMMEs through R200m co-funding agreement

Ashley Lechman|Published 11 months ago

The programme focuses on cultivating local businesses through the provision of business skills training and coaching, access to funding and technical enablement. Image: Supplied

Thuthukani, Thungela’s Enterprise and Supplier Development (ESD) programme, has announced the signing of a co-funding agreement with Absa.

Absa said it would reserve R200 million, reviewable annually, for Thuthukani beneficiaries using their new or existing contracts with Thungela as collateral.

Thuthukani derives its name from the Zulu word meaning “uplift”.

The programme focuses on cultivating local businesses through the provision of business skills training and coaching, access to funding and technical enablement.

This co-funding agreement further empowers them to seize opportunities within Thungela’s value chain.

Mpumi Sithole, executive head for corporate affairs at Thungela, said: “I am pleased that our partnership with Absa will make funding more accessible for local SMMEs with new and existing contracts with us. In 2023, Thuthukani disbursed R21.6 million in loans, leading to the creation of 114 jobs.

“To this end, we could not support businesses requiring loan funding beyond this threshold, as larger contracts require substantial funding that Thuthukani alone could not provide. This partnership with Absa will close this funding gap for SMMEs, opening opportunities for them to pursue larger projects.”

Absa will manage the loan application process on their ESD portal, subject to a recommendation from Thuthukani.

The portal ensures funds are accessible to the approved beneficiaries, offering loans at a prime-linked interest rate.

Kgalaletso Tlhoaele, executive for enterprise development at Absa Relationship Banking, said: “This agreement highlights Absa’s dedication to enabling financial inclusion for SMMEs while also fostering sustainable economic growth across various sectors.

“The allocation aims to provide substantial financial support that empowers SMMEs to expand, innovate and achieve long-term sustainability.

“It also underscores our commitment to being an active force for good in society – enabling us to achieve our goal to support mining communities and create a robust environment where small and medium enterprises can thrive.”

This partnership targets SMMEs in municipalities hosting Thungela’s operations such as eMalahleni, Steve Tshwete and Govan Mbeki municipalities.

BUSINESS REPORT

  • Two women breaking boundaries in farming, promoting food security
  • Number of SMEs being created ‘is not enough’ but red tape and barriers to entry are progress snags
  • Only small businesses can solve our 32.9% unemployment woes

Related Topics:

loansabsasouth africafree market economybusinessfinancegdpmoney mattersconsumersentrepreneursentrepreneurshipsmmesbankingpersonal loans