Global diversified mining major Anglo American’s enterprise development arm, Zimele’s support to a small Limpopo-based materials handling company, Mckhenzi Trading, is a primary example of how the company’s business development fund assists in the development of small and medium-sized enterprises (SMEs) in South Africa, says Zimele.

In 2012, Zimele provided a loan of R1-million to Mckhenzi Trading, a company that maintains and installs conveyor belts for mining companies and heavy engineering industries.

This enabled Mckhenzi Trading to purchase materials, pay employees’ salaries and keep the company running during a tough financial period.

As a result, the company, which is jointly owned by Betty Phashe and Joshua Mudonha, has been able to fulfil its business goals, having landed several contracts with major clients.

Founded in 2010, Mckhenzi Trading also has the expertise to maintain trackless equipment used for underground mining operations.

Mudonha notes that Zimele’s support has proved critical to the company’s growth aspirations.

“Prior to our introduction to Zimele, our company was struggling, as some customers were reluctant to use our services, owing to our relative inexperience in the industry. But through Zimele, we have been able to strengthen our company resources, gain a name for ourselves, and compete with other companies that are already established in the sector,” he says.

Mudonha adds that Zimele not only provided the company with financial assistance, but also provided it with fundamental guidance in running a successful business.

Further, he points out that Zimele played a significant role in the betterment of the community through job creation.

“Owing to the funding from Zimele, our staff complement has grown from 174 to 203 and by identifying other business opportunities and maintaining long lasting relationships with clients, we aim to grow and create more employment opportunities,” he says.

Mudonha adds that the company’s goals are centred on delivering outstanding service with determination and excellence, as the company strives to become the preferred supplier in the area and to continue with the creation of sustainable employment.

For over two decades, Zimele’s approach to enterprise development has realised great rewards. From 2008 to the end of 2012, its four funds provided R708-million in funding, supported 1 393 companies, and completed 1 972 loan transactions.

Further, Zimele-funded businesses have employed 25 364 people and achieved a collective yearly turnover of R3.4-billion.

Zimele acting head Dr Lia Vangelatos notes that Zimele has the capacity to create a real difference in the development of SME’s.

“Zimele’s holistic approach to enterprise development has consistently ensured that widespread change is bought about in poverty-stricken communities, as the support we provide not only allows aspiring entrepreneurs to run a sustainable business, but also furthers the betterment of people who reside near these enterprises by creating employment,” she emphasises.

“Therefore, we are proud that we can help SMEs such as Mckhenzi Trading to become established, thriving businesses, and resultantly further socioeconomic development in communities throughout South Africa,” Vangelatos concludes.