Diversified mining company Anglo American says its Zimele enterprise development model will play a crucial role in achieving economic transformation in South Africa.
“Enterprise development can play a role in delivering on local procurement and bringing small and medium-sized enterprises (SMEs) into the supply chain,” said Anglo American executive director Khanyisile Kweyama during the Anglo American Enterprise Development Conference last week.
She added that one of the latest trends in the industrial policy space highlighted in the current version of the Industrial Policy Action Plan (Ipap) pertained to procurement and supplier development.
Through Ipap, government had identified the need to focus on and refine its approach to public procurement and supplier development across State agencies to increase value for money; therefore, local procurement was not only the correct step but also strategically important, Kweyama explained.
“In the mining industry, local suppliers strengthen our social licence to operate and they play a key role in securing and maintaining our right to mine. At the same time, supportive communities help us to retain, enhance and expand our existing mining assets,” she pointed out.
Moreover, Kweyama indicated that developing and supporting local suppliers could lead to significant efficiencies, as well as reduced delivery and logistics costs.
In supporting local procurement policy, Anglo American’s operations invested R32.4-billion on historically disadvantaged South African businesses in 2013, which accounted for more than 60% of aggregated expenditure across the miner’s business units.
“The business units met the Mining Charter’s procurement requirements for 2013 and progress is well on track to achieve 2014 targets,” she stated.
Consisting of various collaborations with municipalities; provincial and local government, such as the Industrial Development Corporation, the departments of trade and industry, and mineral resources; the Development Bank of Southern Africa (DBSA); and the Small Enterprise Funding Agency (Sefa), the collaboration approach by Anglo American aims to leave a legacy of sustainability by transforming the lives of individuals.
This collaboration has resulted in three of Zimele’s funds – the Sefa Mining Fund, the Godisa Supplier Development Fund and the Sebenza Fund – being offered in partnership with these government collaborations. Anglo American, in partnership with Sefa, formed the Sefa Mining Fund and the Godisa Supplier Development Fund. The Sebenza Fund is a result of the partnership between Anglo American and the DBSA.
Kweyama highlighted that, through these funds, Zimele had been a catalyst for emerging black businesses and was making a tangible difference through the creation and development of SMEs in mining communities across South Africa.
“Over the past five year alone, Zimele has created more than 30 000 nonmining jobs by providing loan finance of R921-million to 1 619 SMEs. Collectively, these generate a yearly turnover of R4.5-billion,” Kweyama said.