Mining giant Anglo American is set to spend R1,2-billion by
year-end on the procurement of services from small and medium
enterprises (SMEs) in the empowerment area, an improvement on the
recorded R1,046- billion it spent in 2000, reports Nick van
Rensburg, manager of Anglo’s enterprise development and empowerment
initiative Zimele. „The bulk of Anglo’s spending is made up of the
procurement of a handful of commodities, such as electricity, fuel,
timber and explosives, most of which are areas where small
businesses do not currently compete,“ he points out.
However, SME-procurement currently accounts for some 20% of the
group’s spending in those areas where they can and do compete,
reveals Van Rensburg.
„I am confident that, for the period between 2000 and atlas mfc milling machine2005, Anglo
will achieve a total SME- procurement figure of around R8-billion,“
he says.
Procurement takes place on a division-by- division basis and,
therefore, there are no compound procurement figures for each
commodity.
Last year, sugar and metals subsidiary Tongaat-Hulett came out tops
in terms of SME spend by division, with almost R404-million paid
for SME-derived products and services.
Anglo Coal followed with R133,7-million, then Anglo Plascrap tyres dust manufacturers equipment indiatinum with
R106,8-million, while pulp and paper firm Mondi spent close to
R100-million with SMEs.
Of the total SME-spend for 2000, over R900- million was spent by
the divisions at an operational level in various outsourcing,
commercialisation and SME iniatives, while, at the centre, Zimele
concluded some R80,7-million-worth of transactions with black
economic empowerment ventures, improving on its 1999 figure of
R58,3-million.
mobile coal crusher hire in south africaMany of the SMEs are developed from outsourcing opportunities at
the group’s mining operations, with ventures ranging from bakeries
and catering, to conveyor-belt maintenance, railway maintenance,
engineering, fuel supplies, laundry services, transport and garment
manufacturing. Zimele – Zulu and Xhosa for ‚to be
independent‘ or ‚to stand on one’s own feet‘ – invests in
enterprises through its investment fund, in return for a minority
stake of up to 20%, with thgyratory crushers for aggregatese ultimate goal of withdrawing from
these ventures as soon as they are self-sufficient and
profitable.
The initiative provides entrepreneurs with guidance on developing
business skills, good business practice, corporate governance, and
lends secretarial and administrative support.
It also assists with the market and strategic development of the
enterprise, and gives SMEs access to other Anglo resources, such as
legal and taxation services, and press exposure.russian crusher machine markets
It is currently invested in 16 ventures, including Semane
Consulting Engineers, Naledi Computer Systems, digital map producer
Surmap Services, degreasing-chemical manufacturer Witbank
Chemicals, and Ceza Conveyor Belt Services.
These enterprises provide employment for just over a thousand
people.
Van Rensburg explains that all these ventures have one thing in
common: that the owners approached Zimele with an original and
viable idea backed-up with a well-researched business plan.
These entrepreneurs also had something to offer apart from
’sweat-equity‘, that is, they made some financial or material
contribution to the venture of their own.
„So, when the going gets tough, they do stand to lose something,“
adds Van Rensburg.
But, as many business proposals are without these qualities, Zimele
only accepts 1% of the countless proposals it receives.
„Ultimately, we prefer to have anything up to 20 successful
investments, rather than a greater number of investments which have
a lower success rate,“ he reasons.
Worth noting is that, for the first time since its launch in 1989
– then known as the Small Business Initiative –
Zimele’s revenue streams have exceeded direct costs. In fact, this
year, it has not yet had to claim any of the R15-million in
investment capital available to it.
Building on this success, Anglo is in the process of duplicating
its South African enterprise development and empowerment initiative
in Botswana and in the Zambian Copperbelt region, reports Van
Rensburg.
De Beers is responsible for the Peo iniative in Botswana, while it
is hoped that the Zambian version – which will have access to
$3,6-million in development capital – will be up and running
by early 2002.