Operations – FMCG Supplier Development Initiative

What we do

Boosting Micro, Small and Medium Business in the FMCG sector: Localised solutions for growth and impact!

The Fast-Moving Consumer Goods Supplier Development Accelerator (FMCG SDA) is a provincial, retailer-focused localisation and import substitution accelerator, positioning itself as an industry game-changer. It supports retailers and the food services industry in localising the production of consumer commodities through compliant and sustainable enterprises in the emerging sector. The accelerator is backed by a highly experienced consortium of stakeholders across public, private and community sectors.

First Business South Africa®

The FMCG SDA is a commercial product of First Business South Africa™.

The FMCG SDA is seeking serious investors who recognise:

The need for demand-driven growth in the manufacturing sector to boost local economy wide productivity

An opportunity for risk-managed investment.

The FMCG SDA offers a turnkey solution focused on consumer commodities, supporting demand-driven, localised micro, small and medium enterprises (MSME) manufacturing within the emerging consumer food supply sector. This includes delivering fully operational turn-key production units in secure, well-equipped facilities, owned and operated by skilled entrepreneurs who receive professional support in food production, processing, sales, marketing, logistics and business administration.

Journey to success:

Our background, history and current progress

Since 2015, local FMCG consulting company, First Business South Africa (FBSA), has played a pivotal role in developing micro and small agro-producers, manufacturers and packers, helping them secure supplier contracts in supermarkets across the Eastern Cape.

In collaboration with Walter Sisulu University’s Centre for Entrepreneurship Rapid Incubator (CfERI), and following extensive research into public-funded FMCG-focused manufacturing and agro-processing, the FMCG SDA was established. Its goal is to create an integrated programme that supports local and rural producers, manufacturers, and processors of high-volume consumer commodities, certifying them as compliant and sustainable commercial suppliers.

This comprehensive turnkey approach includes designing and implementing a localised food supply and value chain programme that strengthens local MSMEs through essential enterprise supplier development. Market intermediaries, such as the SPAR Group, provide support to access future markets and the opportunity for the private label supply chain.

MSMEs can choose from over 500 defined consumer commodities for selection and production.

Primarily funded and supported by the Eastern Cape Development Corporation (ECDC), the FMCG SDA operates as a commercial development consortium in collaboration with private, public and community stakeholders. It develops local and rural manufacturers and producers, offering market access and support for producers of high-demand, high-volume consumer products.

Empowering MSMEs: Commercialisation, upscaling and retail readiness

The FMCG SDA sources existing operating MSMEs that require full commercialisation upscaling support, currently operating at a low commercial, subsistence level.

Applications are screened using a robust filtering priority process to identify potential ‘retail-ready’ candidates. The FMCG SDA provides the industry with a pipeline of potential producers based on commercial compliance readiness, availability to produce and development funding support.

Each business is assessed, based on the technical and operational outcome, the development programme process is triggered.

At the same time, FBSA confirms factory uptakes at relevant infrastructure hubs such as IDZ, SEZ, industrial parks, Agri-hub or similar facilities, which carry a term of government sponsorship, following which, commercial rental and services are charged.

A combination of training, mentoring, employee capacity building, specialised support interventions, commercialisation (access to market) is provided and retailer contracts are secured. The MSME’s manufactured product is offered to existing demand intermediaries to increase its localisation profile of consumer product sourcing. The commercialisation process is complete with actual retail uptake, complimented by the responding supply and value chain support interventions.

Strategic goals for localisation, growth and economic resilience

The objectives of the FMCG SDA:

Through sourcing private sector funds to match secured public sector contributions, the objectives, which are founded on national and provincial government’s strategy to address key issues of unemployment and food insecurity, include:

Localising production

Significantly reducing the country’s dependence on imports and the import sustainability footprint

Bolstering domestic industries

Creating jobs

Ensuring food security

Accelerating manufacturing across the FMCG supply and value chains in the Eastern Cape

Ensuring a more resilient and inclusive economy

Through the FMCG SDA, public and private enterprise together have the opportunity to bring positive and sustainable change to the local and national economy.