Mining major BHP Billiton will next month start construction on the second phase of its enterprise development (ED) centre, which was launched in June by KwaZulu-Natal (KZN) Premier Dr Zweli Mkhize and BHP Billiton South Africa chairperson Dr Xolani Mkhwanazi.

The second-phase development will include the construction of an assessment centre and a sewage plant.

Prior to the construction of the current ED centre, BHP Billiton rented premises from where it qualified small and medium-sized enterprises (SMEs) through its ED programme.

The programme provides training, coaching and mentoring and is aimed at equipping entrepreneurs in the area with the skills and tools to prosper. It is facilitated by business education specialist Raizcorp and sponsored in its entirety by BHP Billiton’s aluminium sector in South Africa.

Raizcorp prosperator manager Thabani Shale notes that the centre established that ample training is provided for tradespeople such as artisans, but that their skills are not properly assessed.

“Tradespeople will be assessed on their basic skills levels by an outsourced company using methods suitable for the different needs of each person,” he says.

Shale explains that Raizcorp was con- tracted by BHP Billiton South Africa to fulfil its enterprise development strategy in 2009.

“Raizcorp was contacted to assist in improving the lives of community members living in areas around the smelters and the performance of small businesses in Zululand, through the ED programme.”

He adds that Raizcorp’s contract with BHP Billiton stipulates that the company is trying to improve the turnover growth of businesses and increase small-business employment by a minimum of 20%.

Raizcorp manager Norman Nxumalo points out that the businesses’ turnover has increased by 135% and the employment rate by 145%.

“Currently, we have 15 entrepreneurs and we enrol 30 new entrepreneurs a year in our two-year programme,” he says.

Nxumalo notes that potential candidates for the programme must have a business turnover of R10 000 a month or more, a cellphone and an email address; the busi- ness must have been trading for six months; and they have to cover their own transportation costs to the centre where they attend a two-hour class each week.

“The selection-process programme costs R2 000. BHP Billiton pays R1 750 of the selection-process fee for each candidate while the potential candidate is responsible for R250,” he says.

He notes that some of the successful entrepreneurs have been incorporated into BHP Billiton’s supply chain.

“The entrepreneurs who work through the ED centre have an 80% success rate,” he states.

Challenging Environment

Shale points out that the major challenges entrepreneurs in the Zululand district face are computer literacy and language barriers.

“Many candidates speak only Zulu. Luckily, the centre offers classes and programmes in Zulu as well as computer literacy classes,” he notes.

Shale adds that, in the last ten months, the centre has raised R14-million for the second-phase roll-out.

“Many candidates have won multiple small-business awards since their enrolment in the programme, which reassures us that we are making a difference in the Zululand community,” he says.

“One programme beneficiary won the 2012 Zululand Chamber of Commerce and Industry Business of the Year Award. More significantly, these entrepreneurs have created 800 jobs since 2009, making an invaluable contribution to providing live- lihoods and stimulating the Zululand economy,” says Mkhize.

He points out that between 2009 and 2013, 170 entrepreneurs have participated in BHP Billiton’s two-year programme and several of them have transformed their fledgling enterprises into dynamic and successful businesses.

Shale states that the new facility is built to green building standards and is designed to reduce heat loads, increase natural light and promote the circulation of fresh air.

It is also equipped with energy efficient air-conditioning and lighting, water efficient plumbing fittings and water-harvesting technology.

“A highly skilled and successful SME sector is imperative to economic growth in South Africa. BHP Billiton Aluminium invested in KZN for the long term and we believe that critical to assuring our business objectives is helping to create thriving local SMEs.

“We believe that these, in turn, will contribute to developing a prosperous Zululand for them and the people they employ,” he says.

Shale states that the ED centre demonstrates BHP Billiton’s commitment to not only the community of Richards Bay and KZN but also to the entire country.