In South Africa, small businesses are critical drivers of the economy and job creation. At Anglo American, we see them as potential partners: in adding resilience and diversity to our supply chain; in contributing to local and regional economies; and in helping our communities benefit more fully from our operations.
We have been helping entrepreneurs build small businesses for years. Now we are refocusing our efforts on our host communities and black-owned suppliers, to help address ongoing socio-economic challenges such as unemployment and poverty, by building sustainable businesses that will endure long after our mining operations have closed.
We do this in two ways: inclusive procurement and enterprise development.
Our inclusive procurement policy aims to increase the number of black-, female-, and youth-owned businesses in our host communities that can supply products and services to our operations across the mining value chain. To do this, we are working closely with host communities and stakeholders in our supply chain to expand our network of local suppliers and manufacturers around our operations.
Together with our major suppliers and manufacturers, we are committed to creating procurement opportunities across the mining value chain, and giving small businesses the help they need to build capacity to supply products and services to our operations.
By actively supporting local content and manufacturing, and developing a robust network of host-community suppliers, we will be able to support economic activity beyond the footprint of our mines.
In line with the principles of the Mining Charter, we have consistently increased the value of procurement of goods and services from BEE-compliant companies over the past years. We calculate and classify expenditure with BEE suppliers across three categories – capital goods, mining-related services and mining-related consumables.
BEE and local procurement expenditure in 2017
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| - | Capital | Services | Consumables | Aggregate BEE spend* | Actual BEE spend | Actual local procurement spend | Total discretionary spend |
|---|---|---|---|---|---|---|---|
| Targets | 40% of expenditure with BEE suppliers with over 25% black ownership | 70% of expenditure with BEE suppliers with over 25% black ownership | 50% of expenditure with BEE suppliers with over 25% black ownership | % | R billion | R billion | R billion |
| Actual | |||||||
| Coal South Africa | 81% | 85% | 87% | 85% | 9.1 | 2.7 | 10.7 |
| De Beers | 73% | 76% | 86% | 78% | 3.4 | 0.9 | 4.3 |
| Kumba | 64% | 83% | 78% | 79% | 8.8 | 3.1 | 11.2 |
| Platinum | 79% | 76% | 82% | 79% | 8.2 | 3.4 | 10.4 |
| AASA | 74% | 80% | 83% | 80% | 29.5 | 9.3 | 36.7 |
* Based on total procurement expenditure from each category.
AASA's performance against the Mining Charter procurement targets
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Anglo American believes that it has an important role to play in creating sustainable value that makes a real difference in South Africa now, and for the future. One of the ways in which we do this is through Zimele, our 28-year-old pioneering enterprise development programme.
Zimele provides enterprise development assistance through a nationwide network of business hubs based in communities local to Anglo American's operations. Enterprise development has the potential to boost small businesses and, through its multiplier effect, helps to address South Africa's current challenges of poverty, unemployment and inequality.
Summary of Zimele's performance 2016 - 2017
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| Number of transactions | Total people employed | Turnover (R million) |
Funding (R million) |
Female entrepreneurs supported | Youth supported | |
|---|---|---|---|---|---|---|
| 2017 | 193 | 4,189 | 1,118 | 115 | 33% | 33% |
| 2016 | 204 | 3,992 | 692 | 121 | 42% | 32% |
