Absa and HEINEKEN Team Up for R1.2 Billion Boost to Black-Owned SMEs in South Africa

Absa and HEINEKEN

Johannesburg – Absa and HEINEKEN Beverages have unveiled a game-changing R1.2 billion fund to help Black-owned small and medium enterprises grow and thrive amid tough economic times. Launched in November 2025, this partnership mixes grants and low-cost loans to give entrepreneurs the cash and know-how they need to succeed. With a focus on creating jobs, cutting imports, and building stronger local supply chains, the initiative aims to lift up historically disadvantaged businesses and drive real change in South Africa’s economy. More than 100 Black-owned SMEs are set to benefit, especially those in key areas like farming, manufacturing, and packaging, marking a big step towards inclusive growth and financial fairness.This move comes as small businesses face rising closures and financial stress, with over 620 companies shutting down in 2025 alone. By blending HEINEKEN’s commitment to local sourcing and Absa’s track record in supporting entrepreneurs, the fund promises to not only save jobs but also spark new ones, helping to tackle unemployment and boost the nation’s GDP.

Funding Structure and How It Works

The R1.2 billion initiative is split evenly: R600 million comes from HEINEKEN as grants through its Enterprise and Supplier Development funding, while Absa matches it with R600 million in low-cost loans for qualifying businesses. This setup makes it easier for SMEs to access money without the heavy burden of high interest rates, blending free support with affordable borrowing to fuel growth.The fund is part of HEINEKEN’s broader Ukukhula Fund, which means “growth” in isiZulu, and includes specific pots of cash for different needs. For instance, there’s a dedicated R400 million Supplier Development Fund over five years, aimed at Black-owned and Black women-owned companies in the alcoholic beverages value chain. Another R200 million Growth and Localisation Fund focuses on building local skills, replacing imports, and opening doors for disadvantaged suppliers. Overall, HEINEKEN is pouring R775 million over five years into local growth, covering supplier help, SME backing, and even tavern upgrades through its Tavern Transformation project.Absa steps in as the fund administrator and debt partner, adding extra muscle with R1.5 million each year for business development and R100 000 for financial education programmes. This ensures entrepreneurs get more than just money – they receive training and tools to run their businesses better.

Targeted Sectors and Who Can Apply

The programme zeroes in on Black-owned SMEs that often struggle to get mainstream funding, especially those linked to HEINEKEN’s supply chain. Key sectors include agriculture for raw materials like barley or hops, manufacturing for bottling and production, research and development for new products, and packaging to keep things efficient. It also supports businesses working on import replacement, helping South Africa make more of what it needs at home and strengthening economic resilience.Eligibility is geared towards historically disadvantaged enterprises, including Black women-owned firms, that show potential for growth and can tie into the alcoholic beverages industry. Applicants will go through a process to qualify for the grants and loans, with a focus on those ready to scale up and create lasting impact. This targeted approach aims to build a more diverse and robust supply chain, giving Black business owners a fair shot at success they have often been denied.

Benefits for Entrepreneurs and Communities

Beyond the cash, the fund offers a full package of support to help businesses last and grow. Entrepreneurs will get business development services, financial literacy training, and access to Absa’s wide networks in enterprise support and agriculture. This ecosystem helps with everything from improving governance and transparency to finding new markets and measuring progress.For communities, the ripple effects could be huge. By backing local suppliers, the initiative cuts reliance on foreign goods, creates jobs in rural and urban areas, and pumps money back into the economy. HEINEKEN already sources 98% of its raw materials locally, up from 65% a decade ago, showing how such efforts can transform industries. Absa has a strong history too, having helped over 1 200 Black-owned SMEs since 2018 and financed more than R11 billion in Black-owned deals in 2024 alone.The fund also tackles broader challenges like economic turbulence, with South Africa’s GDP growth now expected below 1% and a spike in business liquidations. By focusing on resilience, it aims to keep SMEs afloat and turn them into job creators, supporting the 60% of the workforce they employ and the 34% of GDP they contribute.

Quotes from Leaders on the Partnership

Leaders from both sides highlighted the fund’s potential to drive real change. Millicent Maroga, corporate affairs director at HEINEKEN Beverages, said, “This fund is a large-scale demonstration of our commitment to South Africa’s growth and to creating shared value across the country. We are privileged to be investing a total of R775m over five years in local growth, through supplier development, SME support, and local businesses – through our Supplier Development Fund, Growth and Localisation Fund, and the Tavern Transformation project.”Stephen Seaka, managing executive for public sector and growth capital solutions at Absa CIB, added, “This transaction reflects our commitment to redefining transformation finance, not merely through capital deployment, but by embedding governance, transparency, and measurable outcomes into every layer of the solution. Through this funding deal with HEINEKEN, we are enabling real social impact by driving supply chain access, localisation, and financial inclusion in a way that is scalable, sustainable, and aligned to South Africa’s long-term economic and transformation goals.”Vignesh Subramani, interim managing executive for SME Business at Absa Business Banking, noted, “Small businesses are the heartbeat of our economy, and their success is vital to South Africa’s future. Through this partnership, we’re not only unlocking much-needed capital for black-owned SMEs but also creating an ecosystem of support that helps them scale, compete, and thrive sustainably. As the Bank of the Entrepreneur, we believe transformation is most powerful when it is practical and measurable and this initiative is a bold step in that direction.”

Background and Track Record of Success

This partnership builds on solid foundations from both companies. HEINEKEN’s Ukukhula Fund has already invested R800 million in transformation projects since 2022, showing a proven commitment to uplifting local economies. Absa’s Enterprise and Supplier Development arm has been a key player in backing Black-owned businesses, with billions in financing and hands-on support.Together, they are addressing deep-rooted issues like barriers to finance and unequal opportunities, which have held back Black entrepreneurs for years. By combining forces, Absa and HEINEKEN are not just offering aid but creating a model for sustainable transformation that could inspire other industries. As South Africa pushes for economic recovery, this fund stands out as a practical way to foster inclusion, cut poverty, and build a brighter future for all.

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