Stanbic, Wilderness offer lifeline for SMMEs in tourism
Otlarongwa Kgweetsi | Tuesday June 24, 2025 14:08
The partnership, which was kick started when the two organisations signed a Memorandum of Understanding (MoU) recently, aims to address persistent challenges faced by local suppliers, especially around access to finance and market entry.
Officials revealed the MoU establishes a guaranteed-access financing arrangement under which Stanbic will provide commercial loans to SMMEs that have secured supply contracts with, Wilderness, which is an eco-tourism company.
It has been explained that the loans will be de-risked through projected cash flows from the contracts, eliminating the need for traditional forms of collateral such as property or equipment.
“Our client here is Wilderness, and we’re leveraging their scale and financial strength to support SMMEs,” said Stanbic Bank CEO, Chose Modise.
“The key factors are access and affordability areas where many small businesses typically face barriers.”
Wilderness will identify eligible SMMEs based on their capacity and potential, although the final approval rests with Stanbic after a formal credit assessment is made. However, the bank will not rely on fixed assets for security but will instead use expected income from Wilderness as the basis for the funding.
“The difference is, instead of traditional collateral, we are using projected cash flows backed by Wilderness contracts. Because these payments will flow through us, we’re able to manage and mitigate the risk,” Modise added.
Under the terms of the agreement, the selected SMMEs will cede their right to receive payments from Wilderness directly to Stanbic Bank. The structure ensures that loan repayments are deducted from ongoing business activity, creating a built-in system for financial discipline.
The businesses will still be responsible for delivering goods or services in accordance with their contractual obligations and must meet all terms of the programme.
The MoU will be implemented over an initial period of five years, with an option to renew for enterprises that meet performance expectations.
The new agreement builds on an established relationship between Stanbic and OWS. Notable deals include the 2024 multi-million pula expansion facility extended to Wilderness and Stanbic’s continued involvement in the Local Supplier Expo.
OWS Caretaker Managing Director, Joe Matome, said the agreement reflects the company’s long-term commitment to inclusive growth within the tourism sector.
“Our vision has always been one of inclusive conservation where the communities we work with benefit meaningfully from tourism,” he said.
“This partnership strengthens our ability to uplift citizen suppliers and provide a significant boost to the incredible businesses that power the tourism value chain.”
Matome added that the upcoming Local Supplier Expo, scheduled for 26 to 27 June 2025, will be used as a platform to onboard new SMMEs and equip them with financial and business development skills to prepare them for participation in the programme.
“The Local Supplier Expo has become a key platform for engagement, and this MoU takes it further by unlocking actual finance and real opportunity,” he said. “We like to think of it as supporting an economy shaped by citizens, supported by partnerships.”
By structuring loans around confirmed contracts, both institutions aim to reduce the financial barriers that typically prevent citizen-owned businesses from growing. The MoU is expected to create a ripple effect that strengthens the tourism value chain and encourages broader participation from local enterprises.