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Boosting small businesses

Fine-tuned for nearly three decades, Anglo American's enterprise development programme Zimele offers a blueprint for enterprise development. Thousands of small businesses have benefited over the years from the financial support and business acumen provided by Zimele, Anglo American’s renowned enterprise development programme.

Founded in 1989 — long before legislation in 2004 imposed requirements that mining companies support black-owned local suppliers — Zimele’s aim has been to promote small- and medium-sized enterprises (SMEs), with a particular focus on empowering black entrepreneurs.

In 2016 alone, R121m was disbursed to 110 companies that collectively employed 3,992 people and generated a turnover of R692m.

Hlonela Lupuwana-Pemba, MD of Anglo American's enterprise development programme Zimele

Anglo American's enterprise development programme Zimele provided the funds to jump start this catering company, DNL Foods

Zethu Tanzi with baby Iminati during the Lambasi Harvest at Lusikisiki in the Easten Cape, a project funded by Anglo American's enterprise development programme Zimele

Donald Masinga, owner of the oil filtration plant at Khwezela Colliery, funded by Anglo American's enterprise development programme Zimele

“When we assist a small business, we don’t just offer funding — but integrated support,” says Hlonela Lupuwana-Pemba, MD of Anglo American's enterprise development programme Zimele, which means “to stand on one’s own feet” in the Nguni languages. SMEs get access to technical skills and expertise, and are helped to access potential markets and customers, government incentives and other sources of capital.

The main focus is on assisting SMEs that can provide services to Anglo American’s operations around the country, or create jobs in mining communities and key labour-sending areas. Its network of walk-in centres around the country enables entrepreneurs to easily access knowledge, funding and support.

“We’re not a commercial bank. We won’t disqualify an SME that may be listed at a credit bureau, and don’t ask for collateral. Loans are issued at subsidised rates, and we give payment holidays or extensions if required, to help the business become sustainable, alternatively we’ll take an equity stake to lower the exposure to debt,” she says.

The African Development Bank (AfDB) hails Zimele as a best-practice model of how large corporates can spur the growth of SMEs. Zimele is successful because its core focus is on assisting local entrepreneurs to make a success of their businesses, according to an AfDB case study. Zimele also leverages public/private partner-ships where possible.

In recent years, it has had partnerships with likeminded institutions — such as the National Treasury Jobs Fund, Tiger Brands and Shanduka Black Umbrellas — on scalable interventions aimed at growing SMEs in sectors such as agriculture, manufacturing and services.

One example is a R15m agricultural initiative near Lusikisiki in the Eastern Cape, where 900 ha of arable land was aggregated into a single commercial farming entity that represents 490 landowners.

Over the years, Anglo American has adapted the model for some of the other countries in which it operates, including Chile, Brazil and Botswana.