Impact Finance Network: building partnerships to unlock sustainable value

The Impact Finance Network (IFN), piloted in South Africa in 2021, is designed to mobilise third-party impact capital to support the long-term sustainable development in the regions where we operate, in line with our Sustainable Mining Plan (SMP).

Many businesses have the potential to grow, scale and deliver positive and sustainable social and environmental impact. Yet entrepreneurs often lack knowledge and experience in preparing their businesses and presenting them to potential investors. At the same time, investors find it hard to find quality investment opportunities outside of the urban hotspots.

The Impact Finance Network by providing technical assistance to such businesses, helping them become 'investment-ready', matching them with potential investors, and supporting them through the transaction process. 

Together with our partners, we’re identifying a pipeline of innovative, impactful businesses with operations in South Africa, Namibia, Botswana, Zimbabwe, Zambia, Chile and Peru and bringing together a network of impact investors seeking social investment opportunities.

Unlocking value through partnerships

The team's work over the last few years has built a network of partners who collectively seek to unlock mutual value via sustainable and commercial models. “Partnership allows us to collectively unlock impact capital to support growing companies, create much-needed jobs in the regions in which we operate, and ultimately improve people's lives", Emma said.

"We are in the early stages of developing activities to support host country and region impact business growth via access to affordable debt. By partnering with banks and non-bank credit providers and structuring some innovative instruments, we hope to be able to bring debt funding to businesses in non-mining sectors, unlocking value, impact and jobs.”

The potential of corporate impact investment

Corporate Impact Investing is a relatively new approach across all sectors and global corporates. In September, the Global Impact Investment Network (GIIN) released a report shedding light on the innovative ways in which corporations are harnessing impact investment strategies to propel themselves toward their sustainability objectives. Having collaborated closely with GIIN for the past 15 months, Anglo American was featured in this inaugural report and will be featured as a case study in a follow-on report due to be released in Q4 2023.

Speaking on the progress of the Impact Finance Network so far, Emma Parker, Sustainable Business Opportunities Principal, commented: “The IFN fosters long-term sustainable development in the regions in which we operate, something we’re immensely proud of. 

"Since its launch in 2021, we've provided technical assistance to 87 social and environmental impact companies in Southern Africa, Chile and Peru, closed over 30 deals in 22 companies in South Africa, Botswana, Zambia Chile with a cumulative value of $27.5 million, and are projected to support over 13,000 livelihoods."

Read the full report here.