23 June 2011

Anglo American’s Local Procurement and Enterprise Development Trade Fair, held on 23 June 2011 at the Sandton Convention Centre in Johannesburg, highlights the lasting economic and social benefits for host communities in South Africa through Anglo American’s support for entrepreneurs and small and medium size businesses, and the building of resilient local supply chains.

Speaking at the event, Anglo American Chief Executive Cynthia Carroll noted that hosting and facilitating the Trade Fair is tied to the company’s longstanding support for driving real and equitable change in South Africa:

“Since the 1980’s, Anglo American has been pioneering new approaches to building sustainable small to medium size businesses in South Africa, not only because we believe this is the best way to create a vibrant and healthy supply chain that meets our business requirements, but also because it plays a key role in enabling black South Africans and previously disadvantaged individuals to take their rightful place in the country’s economy.”

Anglo American’s enterprise development arm, Zimele is integral to the company’s approach of building the capacity and sustainable prosperity of the communities in which it operates.  Zimele funds, trains and mentors entrepreneurs in emerging black businesses in mining communities, as well as labour-sending and impoverished areas.

To date, Zimele has invested some R467 million in 845 local businesses, which together employ almost 16,000 people and generate an annual turnover of over R1,8 billion.

“These are entrepreneurs and businesses that we are extremely proud of, and we are privileged to have several of them here today to share their stories. Today, we are showcasing just how this partnership model works, and how much can be achieved when it works well,” Carroll continued.

Based on the strength and success of the Zimele model, Anglo American has committed to creating and sustaining 25,000 jobs in up to 1,500 new businesses by 2015.

“This commitment is supported by our spend on black economic empowerment and business development. In the past ten years this has increased from R911 million to R21 billion. Additionally, more than 40% of our total available procurement spend is directed to historically disadvantaged South African businesses.”

The Trade Fair brought together Anglo American’s large domestic and multinational suppliers, locally funded companies and small and medium enterprises, in order to network and articulate their business cases.

The event also profiled and demonstrated the value of local procurement and enterprise development in stimulating the South African economy. Its purpose is to serve as an ideal platform for job creation, skills development, and investment in local infrastructure.

Carroll concluded that Anglo American aims to affect a real difference through its local procurement and enterprise development activities:

“Anglo American takes an open-minded, transparent, inclusive and commercial approach to local procurement and enterprise development. At the heart of this approach lies the principle of using local resources, suppliers and equipment in a way that both uplifts and empowers local entrepreneurs, while meeting very real business needs.”

For further information, please contact:

South Africa
Hulisani Rasivhaga - Media
Tel: +27 (0)11 638 4401

Editor’s Notes

About Anglo American’s Supply Chain:

Anglo American’s supply chain division is one of the most important components of its enterprise development drive, and has demonstrated enormous progress over a short period of time.

Currently, 40% of Anglo American’s South African procurement is completed through black-owned suppliers. This figure is already aligned with the revised Mining Charter’s 40% target of procuring goods from BEE suppliers by 2014.

About Zimele:

Anglo American’s enterprise development arm, Zimele, has, throughout its history, created numerous sustainable, commercially viable enterprises, and empowered entrepreneurs to operate in the mainstream economy.

Through its various funds, Zimele has invested R467 million into 845 businesses, which collectively employ 15,851 people. Through Zimele, Anglo American is committed to establishing enterprise development hubs in high unemployment areas, to help generate more jobs, support entrepreneurship and strengthen local economies in South Africa.

To date, 28 small business hubs have been established nationally.  In addition, Zimele has committed to the Business Call to Action to create and sustain 25,000 new jobs in up to 1,500 new businesses by 2015.