25 August 2010
The current economic downturn and lack of job opportunities has further highlighted the importance of nurturing Small and Medium Enterprises (SME’s) as a means of bolstering this relatively underdeveloped sector of the South African economy. As such the correct understanding of new businesses potential is critical to fast tracking the development of SME’s for entrepreneurs.

Many entrepreneurs still find it hard to acquire the financing they need, as aspiring business owners in townships, peri-urban mining communities and rural-areas are not always considered bankable, owing to a lack of assets or equity. Therefore, the risk profile for most of these entrepreneurs is much higher than someone who can pledge, for example, their house against a loan. Subsequently, they are at a major disadvantage.

We bridge the gap by providing financial security to entrepreneurs that they otherwise would not have received.

Once entrepreneurs’ businesses are up and running, banks will be more willing to invest in them, owing to a steady cash flow. Essentially, financial assistance, support and guidance provide them with a learning curve and opportunity they would not have had.

The reduction of red tape in regulatory polices surrounding SME development, and the furthering of education with regards to SME issues, are essential to stimulating the development of these enterprises in South Africa. Many entrepreneurs are often unaware of issues surrounding the start-up of a SME, including having to pay annual fees.

At Anglo American Zimele, an enterprise development and investment fund, the main focus is geared towards creating employment for South Africans, developing entrepreneurs, and has a mandate to stimulate SME development, in and around the mining Group's operations nationwide.

There are currently 12,723 people employed in the 738 businesses financed by Zimele, and within the next five years, we aim to ramp this number up to 25,000 employees. We also aim to increase our business hub capacity, by opening a further 12 hubs during 2010, in addition to the 12 hubs that already exist.

Broad Based Black Economic Empowerment (BBBEE) is also an important part of the way we stimulate SME development and through our four funds we have invested over R360 million into these businesses.

While many companies are currently providing support with regards to SME’s, not many are providing adequate funding. We are encouraging other companies to employ the same best practice model that we have used for over 21 years, to encourage the development of SME’s and ultimately the development of a prosperous South Africa.

The growth of small and medium enterprises is vital for a developing country like South Africa and more companies need to commit to SME development, by putting in place time and resources. If other companies can implement the same SME practices that we have done, we will have greater activity in the entrepreneur development space, which will only aid in strengthening our economy and addressing issues of unemployment.

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For further information, please contact:

South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592

Notes to editors:

Anglo American plc is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Its portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in both platinum and diamonds; base metals – copper and nickel; and bulk commodities – iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.
www.angloamerican.com