Pilanesberg Platinum Mines (PPM) has pledged its support for the Business for South Africa (B4SA) initiative called #PayIn30.
PPM will be joining 50 other large companies who have formally committed to paying their small, medium-sized and microenterprise (SMME) suppliers within 30 days to ensure they survive this economic crisis.
The recession and Covid-19 pandemic have severely impacted the country's 2.5-million SMMEs, which are responsible for the creation and support of about 10.8-million jobs across the country.
According to most SMMEs, delayed payments disadvantage optimum cash flow. When they are paid late, salaries and supplier payments are affected, and the effects are far-reaching with dependents and the community at large being negatively affected.
Timeous payments are critical during these difficult economic times where companies are struggling to maintain revenue.
“We know that one of the issues that SMMEs deal with is the lack of cash flow; by paying on time, we want to make sure we don’t add to the hardships experienced during this difficult period.
“In fact, since 2015, we have paid all our SMMEs within 30 days of receiving their invoices. In 2020 alone, we managed to create business opportunities for more than 100 small businesses in the Moses Kotane local municipality and have spent a total of R31.4-million on their services,” says PPM financial manager Noma Mabikwa.
The mine is located in an area where business opportunities are limited and the unemployment rate is high.
To address these issues, PPM unreservedly supports B4SA’s #PayIn30 drive and commits to continue paying all its SMME suppliers within 30 days of receipt of invoice.
“Further to paying on time, we have committed to supporting more local businesses in the area. We are of the firm belief that by supporting small businesses, especially women and youth-owned, we will be able to create sustainable growth opportunities beyond mining.
“We encourage mining companies to join this initiative and to work in solidarity towards a common goal of helping boost our economy,” adds Mabikwa.