Mining company Anglo American has invested R708-million to fund up-and-coming businesses through its Zimele enterprise development initiative.
Zimele creates and develops commercially viable and sustainable small and medium-sized enterprises (SMEs) by providing empowerment opportunities for previously disadvantaged South Africans.
“Over a period of five years, the Zimele initiative has funded 1 972 transactions for 1 393 small companies. Many of these companies are start-ups and others are developing companies.
“Over the years, companies have come back for a repeat transaction or for us to fund them again for this to happen; companies have to repay us for the first transaction. Repeat trans- actions show sustainability and growth for these companies,” says Zimele acting MD Dr Lia Vangelatos.
Collectively, the companies generate a turnover of about R3.5-billion a year. “The companies are all doing well because, to generate a turnover, you need a viable business and that is exactly what these companies are becoming,” she adds.
Even though the economy is going through a challenging time and the market is unsecure, Zimele has continued funding SMEs.
“As part of our model, in addition to the funding, Zimele also supports the individuals who run the businesses. We are heavily involved with mentorship programmes and the training and coaching of employers and the employees of the business. This enables the companies to have suitable structures and systems in place to assist them,” explains Vangelatos.
Anglo American believes strongly in undertaking mining in a holistic way. The initiative aims to make an impact, induce change within communities and improve the lives of the people who are involved in and around the mining communities.
“We support, enhance and see what we can do for businesses in and around the country where we have established mining projects. We extend beyond the mining community. We are able to fund government supply chain contracts that are widely spread through various industries are not limited to the mining industry only,” concludes Vangelatos.