Background
Bonutrax is an environmentally conscious scrap reclamation and industrial waste processing company operating in Kriel, Mpumalanga, with a workshop in the nearby town of Ogies. Founded in 2016 by Sizwe Morgan Mtshali, the company’s core business is the collection of scrap metal from mines across the Mpumalanga province, which it sells on behalf of those mines to scrap dealers and recyclers, paying the mines a predetermined rate for the material.
One of Bonutrax’s stated objectives is to contribute to the South African economy through job creation, skills transfer, and the development of business opportunities for youth from historically disadvantaged backgrounds.
The Challenge
Despite its clear purpose and operational grounding, Bonutrax faced a cluster of interconnected challenges that were holding the business back:
- Difficulty securing mining contracts due to limited marketing capability and no professional business identity
- Inadequate financial management and cashflow controls, affecting the company’s ability to grow and sustain operations
- An inability to source scrap metal in large enough quantities to unlock greater revenue potential
- A leadership transition underway, Mtshali was set to take over the business from his father, who was retiring, at a time when he recognised he lacked the management skills and financial know-how to run the company effectively
- Severe operational disruption caused by the COVID-19 pandemic and lockdown restrictions, which forced the suspension of operations and left the company’s three trucks unserviced and unusable due to mechanical problems, with no funds available to repair them
The Solution
In 2020, Bonutrax applied and was selected to join the Seriti Enterprise and Supplier Development Programme, designed to identify and develop SMMEs in the local communities where Seriti operates. Seriti contracted Zevoli Growth Partners to develop and implement the programme, in line with Seriti’s commitment to support local SMMEs with the business skills needed to expand their capacity. A recruitment and awareness campaign attracted more than 500 SMME applications.
The six-month programme (February–July 2021) was a structured capacity and capability-building initiative focused on improving operational efficiency, expanding market share, and enabling sustainable growth. For Bonutrax, the programme identified marketing and financial management as the two most critical areas for intervention.
The following support was delivered:
- Mentorship and coaching — targeted guidance on growth strategy, decision-making, and people management through the Mentorship and Coaching, Business Growth Learning Programme, and Digital Marketing modules
- Financial management system — a digital system enabling Bonutrax to track finances, generate quotes, invoices, and payslips efficiently
- Project management system — enabling systematic management of time, teams, and projects
- Corporate identity revamp — including an updated logo and a professional website, establishing a credible market presence
While participating in the programme, Bonutrax secured a three-year contract with Seriti to collect scrap metal from its various mining sites, the company’s first ever long-term contract.
Results and Impact
The results of the programme were swift and significant. Bonutrax’s revenue grew by 84% and its staff complement increased by 75% over the programme period. The three-year Seriti contract not only provided guaranteed income for the next three years, it became an effective marketing tool in itself, demonstrating to future clients that the company had the skills and capacity to handle large volumes of scrap metal on behalf of major mining companies.
As a direct result of the contract and expanded capability, Bonutrax was able to hire 19 additional employees, growing its team from six to 25 people. The financial system enabled more effective profitability management, while the marketing tools and skills enabled the development of a social media presence and a more structured marketing strategy.
Mtshali also benefited significantly on a personal level, gaining the leadership skills, financial acumen, and business confidence needed to steer Bonutrax into its next phase of growth.
The Seriti ESD Programme provided me with the business and management skills that I needed to take over the day-to-day running of Bonutrax and we now have the correct systems in place to be successful.
What They Said
When we introduced our ESD programme, we had two goals in mind: to develop local SMMEs to create a pipeline of supply-chain-ready businesses that can secure procurement opportunities both in and outside Seriti, and to enable them to realise scale and drive supplier diversity in our supply chain.
Sizwe was always passionate about the business, but having never run a company before, he felt that he needed guidance and support to acquire the necessary business knowledge and confidence. The Seriti ESD Programme equipped him with the skills and tools he needs for future success.
The Seriti ESD Programme was great. It provided me with the business and management skills that I needed to take over the day-to-day running of Bonutrax and we now also have the correct systems in place to be successful.
Conclusion
Bonutrax’s journey through the Seriti ESD Programme illustrates the compound effect of well-designed, targeted development support. By addressing the business’s most critical operational gaps — financial management, marketing capability, and systems infrastructure, while simultaneously building the new MD’s leadership confidence, the programme delivered outcomes that extended far beyond the six-month intervention period. Bonutrax entered the programme as a struggling six-person business; it emerged with 25 employees, a three-year anchor contract, and the capability and confidence to pursue further growth.
