Source: African Development Bank Group
Among the clanging sounds of machinery and the smell of sawdust, Dipuo Phakathi is building something extraordinary in a male-dominated home furnishings field. A mining engineer by training and working as an process engineer at Standard Bank, Phakathi’s kitchen and cabinet-making startup in Johannesburg, South Africa, was born out of a home renovation when she was at odds with the designers she hired to improve her own home.
“I wanted to go big but none of them were really getting it,” she recalls. “They were not asking the right questions.”
Frustrated by the renovation team’s lack of customization and vision, Phakathi hired her own carpenter – Nelson Macheque, a soft-spoken man with whom she said she felt an instant connection. Macheque had years of woodworking experience in woodworking but lacked business structure to grow: she had vision and determination but no production expertise. Together, they made an unusual team, spending weekends working on small renovations and custom closets for her home, then other clients. Phakathi said the startup was just a weekend side hustle while she continued working weekdays at Standard Bank.
In 2018, Standard Bank ran a contest for employees with a side hustle. The prize was four months’ paid leave and a cash reward to focus on the contest winner’s business. Competing against thousands of colleagues, Phakathi won.
“I thought, you know, this is the only time that I’m going to make my business grow. So I said, I’m going to take my business seriously,” she remembers.
Despite the win, growth was slower than she anticipated. Phakathi and Macheque continued targeting small housing projects, using one of their custom-built units as a showroom for potential clients. “We were showing people what we could do, but it was still small-scale,” she said.
Then during a family holiday, Phakathi spotted a beautiful kitchen in her AirBnB rental. Complimenting the owner, she learned he was in the kitchen manufacturing business and asked if he might mentor her. He agreed, but when they met back in Johannesburg, he stunned her with an offer to buy his factory. However, the asking price was $150,000, a figure Phakati could not afford. Thanks to a women entrepreneur support program she was participating in, she had legal expert crafted a payment plan based quarterly installments based on sales targets that the factory owner agreed to. The factory seller’s son even stayed on for a year to train her.
Today, Phakathi’s Denic Cabinets business is thriving and impacting lives. Her expansion into corporate projects and her first international installation in Zambia in 2022 marked a significant milestone.
“One of my employees, an old man who had never flown before, cried on the plane. That’s when I realized, this isn’t just a business – it’s a purpose,” Phakathi said, clearly moved.
Each project they complete is a testament to how empowerment initiatives, from mentorship to financial readiness programs, enable women like Phakathi to overcome barriers. In 2024, thanks to Graca Machel Trust’s Women Creating Wealth, an AFAWA-backed women entrepreneurship program, Phakathi accessed $158,000 in funding that will help her further expand her business: “I’m getting machinery that will cut out my manual assembling time from days to basically minutes. With an increased productivity, I expect to double my turnover”, Phakathi said, her eyes lighting up.
Phakathi’s journey exemplifies how making the most of Africa’s capital to foster its development, must center on reducing the financing gap the continent’s women entrepreneurs face. African Development Bank’s AFAWA program is facilitating the financial capital and business tools Africa’s women-led businesses need to succeed – Phakathi’s team is expanding. When women have the capital to build strong businesses, these businesses foster communities, create opportunities, and redefine the possibilities for those who follow.