Woolworths launches Inclusive Justice Institute, committing R300m to support MSMEs and community initiatives

In a groundbreaking move, South African multinational retail company, Woolworths has announced the launch of its Inclusive Justice Institute in Cape Town, pledging R300 million to support Micro, Small, and Medium Enterprises (MSMEs) and community initiatives.

This initiative is part of Woolworths’ broader social justice efforts, aimed at enhancing the quality of life in the communities it serves.

Group CEO Roy Bagattini emphasised the company’s commitment to being a responsible retailer, stating that the Institute embodies their dedication to meaningful social justice.

In a statement following the launch on Wednesday, the Inclusive Justice Institute will host two non-profit organizations – the Enterprise Inclusive Justice Institute (EIJI) and the Community Inclusive Justice Institute (CIJI).

The CIJI will focus on social impact programs tackling food security and promoting quality education to foster community resilience and economic inclusion.

Meanwhile, the EIJI will enhance Woolworths’ MSME development program, ensuring small businesses receive the necessary mentorship and financial support to thrive as sustainable suppliers.

Minister of Small Business Development Stella Ndabeni praised the Institute as a significant step forward, stating,

“The Woolworths Inclusive Justice Institute points us in the right direction. It’s a practical demonstration of how a leading retailer can empower small enterprises. A vision like this resonates with everything we stand for,”said Minister Ndabeni.

Woolworths Corporate Social Justice Director Zinzi Mgolodela highlighted the Institute’s potential to expand existing efforts in promoting economic growth, stating,

“Our support for MSMEs has significantly contributed to job creation and business expansion. We also aid rural communities in achieving self-sufficiency through agricultural initiatives and enhance education in under-resourced schools.”

The new investment includes R200 million from Woolworths and R100 million from The Land and Agricultural Development Bank of South Africa (Land Bank). CEO Themba Rikhotso discussed the importance of this collaboration, stating, “Our partnership with Woolworths and the Inclusive Justice Institute shows our shared commitment to transforming South Africa’s agricultural landscape.

This investment enables access to affordable capital for emerging farmers and contributes to building an inclusive, sustainable food system.”

Woolworths reported significant progress in its social justice initiatives over the last financial year, including a 42% increase in procurement spending on MSMEs to R4 billion, R7 billion contributed to revenues of black and black women-owned suppliers, and donations of R816 million worth of surplus food to under-resourced communities.

The Inclusive Justice Institute not only bolsters Woolworths’ ongoing social justice efforts but also opens the door for external investment, creating a platform for sustainable impact and inclusive growth.

Stakeholders interested in fostering meaningful change in South Africa are encouraged to partner with the Institute, reinforcing the collective ambition for a better future for small businesses.