Anglo American increases BEE spend by 42% in 2008
09 February, 2009
Anglo American South Africa and its independently managed subsidiaries report a procurement and enterprise development spend of R24,6 billion for consumables, services and capital with black-owned and managed small and medium businesses (SMEs) for 2008.
Anglo American’s small and medium enterprise development
and empowerment initiative, known as Anglo Zimele, aims to empower
black entrepreneurs through the creation and transformation of
SMEs.
Key facts and highlights
- Total BEE procurement spend and enterprise development up 42% to R24,6 billion for 2008 (2007: R17,3 billion).
- Highest amount spent is Anglo Platinum (R9,9 billion), followed by Anglo Coal (R4,8 billion) and Kumba Iron Ore (R2,2 billion).
- The procurement spend equates to 37% of total available spend (excluding goods and services from parastatals and municipalities).
- During 2008, Anglo Zimele, Anglo American’s enterprise development unit, invested in nine new companies through its Supply Chain Fund, while its junior mining investment arm Anglo Khula Mining Fund invested in two new mining ventures.
- Anglo American’s most recently established fund, the Small Business Start-Up Fund, approved 179 loan transactions for small businesses to the value of R51,9 million as at end December 2008. This funding provided seed and working capital for rural-based SMEs to play a sustainable role in their respective communities in the proximity of Anglo American’s operations. The enterprises collectively employ 1,647 people.
- On the enterprise development front, the collective turnover by the 228 companies in the Anglo Zimele Supply Chain Fund, Small Business Start-Up Fund and Anglo Khula Mining Fund portfolios amounted to R1,3 billion which, added to the procurement spend of R23,3 billion, totals R24,6 billion.
- Anglo American’s cumulative BEE procurement spend since 1993 has reached some R79,1 billion. The BEE procurement spend of R24,6 billion also includes R2,5 billion by De Beers (excluded in 2007 figures); R2,8 billion for Tongaat-Hulett and Hulamin accounted for under the BEE Codes of Good Practice.
Commenting on the Group’s performance in the SME sector,
Anglo American South Africa Head, Kuseni Dlamini, said: "It is
through supporting deserving and passionate entrepreneurs
that Anglo makes a wider, meaningful and lasting contribution to
the efforts to erase poverty and unemployment and contributes to
sustainable and inclusive economic growth and development in South
Africa. Since 1999, we have made a significant contribution to BEE
procurement and business development and I am immensely proud of
the opportunity which Anglo American has afforded the deserving
entrepreneurs through the Anglo Zimele funds. Our dedication to
investing in local suppliers and focusing on local enterprise
development is evident by our record BEE procurement and enterprise
development spend for 2008."