PODCAST | SMEs in focus: Tea, tariffs, and the SME supply chain - Trade Treasury Payments

At the ITC SME Ministerial in Johannesburg, South Africa, Trade Treasury Payments (TTP) spoke with Sibongile Isaacs, the co-founder of Ting Tang Teas, to get an inside look at a small business operating in the global south.

Isaacs shared the journey of her business, which started from a small, home-based venture and has since grown into a successful tea manufacturing company sourcing ingredients from local South African farmers. “I started making herbal mixtures for my children when they were young,” Isaacs said. “What started as a way to manage everyday health issues became a commercial venture after my daughter saw the potential in what we were doing.”

Turning a homespun recipe into a fully operational and growing business, however, has not been without challenges. Isaacs noted the difficulties in scaling operations, particularly in terms of production capacity and financing. “Our production line is still in its early stages,” she explained. “While it was sufficient to start, it’s no longer adequate to meet the increasing demand. We now need machinery that can handle larger volumes while maintaining quality standards.” 

Purchasing machinery that can handle the volumes Isaacs would like to bring Ting Tang Teas to, will require financing of some nature. This is not always an easy find for small businesses in their position. “We are exploring government grants, but there are few opportunities available. If those don’t work out, we will have to seek out other forms of funding.”

One newer issue for Ting Tang Teas has been learning about and dealing with the tariff environment. She noted that while the company has been able to absorb the cost of tariffs on smaller quantities, larger shipments will present new challenges. “The tariffs are manageable when we’re sending small quantities to test markets like Singapore. But as we scale, those tariffs will become more burdensome,” Isaacs said. “We are exploring free trade markets to mitigate some of that impact, particularly with countries in Asia and the UK, where tariff reductions are in place.”

Isaacs wished that policymakers and financial institutions would be more understanding and flexible to the needs of smaller businesses like hers. “We need banks and governments to break out of the old policies and be more willing to take calculated risks,” she said. “I know the risk is high for SMEs, but there needs to be more support for those of us trying to grow. Innovation is key, but we need the financial backing to help us scale.”

Growing a business takes a good idea and great execution to bring that vision to reality. It is never an easy feat, but it is one that could be made just that little bit easier with the help of policies and financial tools that can empower small businesses to grow, and give them the financing they need to be able to do so.

Allowing entrepreneurs like Isaacs to grow their businesses unimpeded by factors beyond their control, will be a major driver towards true sustainable development.