Empowering small businesses in mining sector with Anglo American Zimele

As two thirds of Small and Medium Enterprises (SMEs) in South Africa typically close due to financial reasons, SAICA Enterprise Development (SAICA ED) exists to build Financial Excellence into SMEs to reverse that trend,” says Annie McWalter, CEO of SAICA Enterprise Development.

SAICA ED is part of the Learning and Development division of The South African Institute of Charted Accountants (SAICA) and runs Enterprise and Supplier Development (ESD) programmes.

Against this backdrop, SAICA ED is always committed to implementing meaningful and impact-driven development interventions and programmes to enhance SMEs for greater sustainability.

One of our latest developing projects has been our strategic collaboration with Anglo American Zimele – an Enterprise and Supplier Development Programme at Anglo American – looking after a range of economic development activities including training and supporting mining host community SMEs. The first pilot cohort empowering 44 SMEs is being implemented at their Kumba Iron Ore and Platinum operations.

This collaboration project will continue until March 2023 and has seen much growth and impact thus far. The interventions were aimed at improving SMEs’ financial management systems to run effective operations to create business sustainability. So far, the SAICA ED team has been able to do on-the-ground site visits in July and again in October to gauge how all the 44 beneficiaries are doing on the programme.

The SAICA ED business coaches have been assisting several of the SMEs directly with their accounting and back-office requirements (those who have opted for this), supporting their management processes for compliance, as well as the implementation for all of on-going finance coaching sessions and monthly bootcamps, which will continue into next year.

We asked a few of the SMEs to share their growth journey from the programme thus far:

Beauty Monene, owner of Monenebe Maintenance and Projects comments, “This is the first programme I did after several Enterprise Development programmes which has been effective. I have implemented the advice given by my financial coach, and the analysis of my financials has opened my mind.  I will be continuing with accountant assigned to me from this programme for the upcoming financial years.”

Monene’s core business focus is plant hire and logistics as well as furniture manufacturing. Since the programme started in March, the business has seen a 9% growth in revenue and over 170% increase in net profit.

And we hear from Lukas Potgieter, Financial Director of Luthan, “The programme assisted us to do proper financial planning and to compare the budget versus actual to effectively control our costs. The programme is adding much value to our business in terms of making sure that we are compliant and that our financials are up to date.”

Luthan’s core operations include the supply of diesel, lubricants and mobile machinery as well as lifting machinery repairs to mining houses. Luthan has seen a growth in revenue since including diesel supply. They have also successfully been awarded three new additional tenders since being in the programme.

Furthermore, as much as the financial impact is a core focus, we also love hearing positive feedback from the business owners who have gained important personal development, networking skills and a boost of confidence from being on the programme.

“Thank you for granting me the opportunity to be part of this coaching programme as it has been extremely beneficial in many ways. The programme provided an environment for me to hone my entrepreneurial skills. I now have new-found confidence to approach potential clients with a clearer vision for the business and its future,” says Babalwa Makobane, owner of Sande Services. Sande Services supplies and hires out mining machinery as well as transporting equipment and has seen steady business growth, as well as full compliance.

We look forward to the continuation of the project into 2023 and will continue to highlight the good news and growth impact of these SMEs along the way.