Zimele, Anglo American's enterprise development programme, which has been supporting SMEs in mining towns to create jobs since the late 1980s, is now tapping into tourism for further youth opportunities.
Larisha Naidoo, head of the enterprise programme, said tourism was making it possible for young people in mining communities to obtain skills and short-term job opportunities while travelling the world.
Zimele has partnered with international cruise liners, Silversea Cruises, to place young people from mining towns in shipping jobs. Naidoo said this has been a game-changer as it enables the training and placement of young people in jobs aboard cruise liners, where they get to travel while earning dollars.
“The programme is geared for young people to earn in dollars, it is tax-free and board and lodging are included. It gives them the ability to see amazing places around the world.”
Naidoo said the young people develop a completely changed outlook on life when they start to experience places outside South Africa.
“Everything we do at Zimele is seen as a stepping stone. We are not at the arrival point; we are not here to take someone to an MBA. We are here to say how do we look for economic development, socioeconomic development, how do we leverage multiple partners, how do we use partners to make a difference?”
Naidoo said Zimele had also disbursed over R500m in SMME funding to communities that live near mines owned and operated by Anglo American, Kumba Iron Ore and Valterra since 2018.
The programme has also supported more than 3,500 SMEs through enterprise supplier and youth development support.
We know tourism plays a big role in fighting poverty because it is a quick way of getting people upskilled, it is a very fast way to get them into short-term jobs
— Zimele head Larisha Naidoo
It has a 92% recoverability on the loans because SMEs that are supported get access to markets and customers, and are able to differentiate what their value proposition is, which is crucial for business viability and sustainability.
Naidoo said the enterprise development programme had partnered with banking giant Absa, which has injected due diligence and financial skills to help Zimele beneficiaries understand how to have an integrated supplier development financing structure that allowed them to understand the intricacies of tenders and supplier contracts and to access funding.
“If they won a contract, they were able to apply through Absa for funding, which was sponsored by either Anglo American, Kumba Iron Ore or Valterra Platinum, working very closely with end users, our supply chain, and our business partners.”
Naidoo, who has headed Zimele since 2019, said infusing tourism into businesses that are close to mines was a no-brainer since a lot of mining areas boasted some of the most beautiful landscapes in South Africa.
“We said we know tourism plays a big role in fighting poverty because it is a quick way of getting people upskilled, it is a very fast way to get them into short-term jobs, and gets them growing into opportunities that make them financially more independent to make further decisions.”
SMEs that operate in the feeder areas can access loans of up to R5m at 6% interest on the strength of their cash flow.
She said Zimele looks at the strength of the cash flow as opposed to the strength of the balance sheet because SMEs are growing their businesses and learning, and that is also why youth development is a key pillar of the programme.
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