MTN SA launches Xlerator to support small businesses

MTN SA has launched MTN Xlerator, a new enterprise and supplier development (ESD) program.

The program aims to scale and improve procurement processes and the development of the telco's local small and medium enterprise (SME) suppliers.

MTN SA CEO Charles Molapisi announced the project at a media event in Johannesburg on Friday. He said MTN Xlerator is set to stimulate economic growth, champion inclusivity and reshape South Africa's supply chains.

"The MTN Xlerator program will support black-owned enterprises, aligning with the environmental, social, and governance (ESG) pillar of our Ambition 2025 strategy," he added.

MTN Xlerator program will offer support to participants in several ways to aid their growth and their ability to meet the program requirements.

MTN Xlerator program's ambitions

The Xlerator sets ambitious new targets to improve procurement spending and the development of local suppliers.

MTN has set a target to spend 50 million South African rand (US$2.6 million) in procurement at 50 black-owned suppliers in 2023, up from 13 black-owned suppliers in 2021, with more investments planned.

Furthermore, the telco plans to have 140 active qualifying small enterprises within MTN SA's supply chain, from 70 now, and 120 active exempted micro enterprises (EMEs) from 66 currently.

Through the Xlerator program, MTN has set a target to spend R50 million (US$2.6 million) in procurement at 50 black-owned suppliers in 2023. (Source: MTN SA).

MTN SA seeks to lower the barriers to entry to the telecommunication and technology sectors, which have been notoriously difficult to break into, due to the often high cost of capital investment required, Molapisi continued.

"This program is already helping us facilitate more black-owned network operators in the country, an important milestone for the industry," he continued.

"As an example, this program is already helping us facilitate more black-owned network operators in SA, which is an important milestone for the industry," he explained.

"Beyond procurement opportunities, we are also reshaping the ownership landscape of our Y'ello stores, with the goal of better mirroring the demographic tapestry of South Africa," Molapisi added.

Related posts:

*Top image is of MTN SA CEO Charles Molapisi. (Source: MTN SA).

— Matshepo Sehloho, Associate Editor, Connecting Africa