Inyosi is excited to share our latest loan funding beneficiary following the successful disbursement of funds to Amsterdam Sawmills. This is aligned with our commitment to provide development finance to Black-owned enterprises in South Africa with established businesses, proven business models and make a real and positive impact in their communities!
Amsterdam Sawmills traces its origins to a modest beginning. At the age of 16, almost 26 years ago, Mohamed Ebrahim (“Mohamed”) started working in his family’s small cash-and-carry wholesale enterprise located in the very remote and rural town of Amsterdam, Mpumulanga, near the border with eSwatini. As Mohamed worked long hours in the shop, he found himself pondering additional avenues for generating income. Aware of the potential inherent in the expansive pine plantations surrounding Amsterdam, the idea of a sawmill began to ‘grow’ in his mind. After a lot of research, in 2012 this plan was put into action, when he acquired the first sawmill equipment to realise his dreams.
However, being an entrepreneur by nature, this was only one of the ventures Mohamed started. Over the next 12 years he operated a number of businesses including the sawmill. He had taken over the cash-and-carry store on his father’s retirement, he ran a fleet of 15 trucks and 17 trailers and started mixing and selling paint.
When the only bank in Amsterdam closed its doors in 2016, making cash less accessible to the local community, Mohamed recognized the limitations this posed for his cash-and-carry business. In 2020, Mohamed also made a pivotal decision to sell his fleet of trucks and shift his entire attention towards his sawmill and paint businesses.
Initially focused on supplying ungraded, undried construction timber to rural communities with limited access to construction materials, Amsterdam Sawmills is now ready to enhance its product offering. With funding from Inyosi, Mohamed has been able to realise the business’s vision of acquiring a timber-drying kiln – necessary for the production of dried and graded timber (favoured in both the construction and furniture industries). The new kiln will allow Amsterdam Sawmills to obtain SABS approval for their timber and pave the way for partnerships with major hardware retailers like BuildIt, EST Group, Buco, and Leroy Merlin. This will also see Amsterdam supply larger loads to these customers as the dried timber has a longer shelf life resulting in larger orders.
Amsterdam Sawmills is 100% black-owned and currently employs 26 full-time staff, all from local communities. By expanding its product offering, Amsterdam is expecting to create 4 more jobs and economic opportunities in this small and far-flung rural community in Mpumalanga.
Amsterdam Sawmills, with Inyosi Empowerment, will deliver on our commitment to sustainable growth and community empowerment!
For black-owned businesses interested in learning more about Inyosi’s opportunities click here to enquire about an Inyosi loan today.
