A loan facilitated by our Small Business Hub enabled Jim Mohuba, owner of Magapholi Mining and Electrical Services to create a business selling building materials
Zimele, Anglo American’s initiative created to focus on developing enterprises in South Africa, has undertaken to create and preserve 25,000 jobs within 1,500 companies by 2015. This is based on our commitment to the United Nations development programme’s Business Call to Action in support of the millennium development goals (MDG s).
We are on track to meet our 2015 target, with 19,575 jobs in 1,085 companies created since 2008. In our mining communities and poverty stricken labour-sending areas, 31 of the intended 36 small business hubs are already in place. From 2008 to 2011, we have directed R567 million to enterprise development.
Such is the success of our Zimele strategy that the International Finance Corporation (IFC) has prescribed our model as the best approach globally for companies seeking to integrate local SMEs into their supply chains.
The name ‘Zimele’ originates from the Zulu and Xhosa languages and means ‘to be independent’.
It is appropriate for what we are achieving with this initiative – the funding, training and mentoring of entrepreneurs in emerging black businesses in mining communities, as well as in labour-sending and impoverished areas. We have been doing this for more than two decades, and believe that enterprise development is one of the most effective means for ensuring sustainable benefits for our host communities.
Through our four different funds we have been helping to build sustainable, commercially viable enterprises, and empowering entrepreneurs to operate in the mainstream economy. The advancement of black SME entrepreneurs has successfully generated sustainable job creation and socio-economic development in predominantly peri-urban mining communities.
Our strategic blend of financial support and incubator-style mentorship allows the companies that we invest in to be independent and to grow. Our input in areas such as corporate governance, management, legal issues, accounting, company secretarial functions, public relations, safety,
health and the environment has contributed to the success of our approach to enterprise development.
Since we began conducting BEE transactions through Zimele in 1989, our involvement has grown to four funds, the latest addition being the Green Fund.
- Supply Chain Fund: This R200 million fund supports BEE enterprises by providing equity and loan finance, as well as hands-on support, business guidance and skills transfer to black-owned and managed SMEs within our supply chain. In 2011, the fund completed five transactions, providing R14 million in funding (with a cap of R5 million per deal) and sustaining 266 jobs.
- Anglo American Khula Mining Fund: This joint initiative with government-owned Khula Enterprise Finance Limited holds a R200 million fund (capped at R40 million per deal) to provide equity and loan finance to emerging black-owned mining companies, as well as technical support during the exploration and pre-feasibility phases. In 2011, the fund completed two successful exits.
- Community Fund: This fund provides seed and working capital for entrepreneurs and emerging businesses in our host communities and in labour-sending and impoverished areas. With a cap of R1 million per deal, the fund completed 475 transactions during 2011, providing R110 million in funding and creating or maintaining 3,958 jobs.
- Green Fund: Anglo American has committed R100 million (capped at R10 million per deal) to the Green Fund, which was launched in November 2011. This new fund aims to target investment opportunities that mitigate carbon emissions, reduce energy and water consumption, and improve waste and emissions management. It aims to empower entrepreneurs and SMEs to operate in the green economy.
- Godisa Fund: The Godisa Fund is a tripartite agreement between Transnet, South Africa’s national transport authority, Government and Anglo American and is testimony to Zimele’s well-known and respected enterprise development model.
The focus of this new fund will be the development of black-owned small and medium enterprises (SMEs) primarily in Transnet’s procurement value chain, with focus on the company’s rail and port businesses. Each partner in the Fund will contribute R55 million towards the Fund, which totals to a grand R165 million.