AFRICAN BUZZ •
In the mining sector enterprise development prioritises investments towards companies operating in host communities( near mining operations or in labour-sending areas). The objective is to contribute towards the development, sustainability, as well as financial and operational independence of businesses in towns near mines, so that they can continue to be thriving businesses, even after mine closures. During 2023, a total of R279.4-million was invested on enterprise development by the surveyed mines and this benefited one thousand, three hundred and seventy-two( 1 372) companies.
R1.6-billion was invested in companies on various supplier development programmes. This represented 84.5 % of the combined total on ESD spend. Supplier development programmes are aimed at supporting empowered companies that are already operating within measured companies’ supply chains. Programmes focus on capacity building to improve operational and technical efficiencies, cash flow management, mentorship etc. Eight hundred and sixty-seven( 867) companies benefitted from various supplier development initiatives.
The bulk of ESD investments, R1.49-billion went towards financial support. More specifically, R1-billion went towards making early payments to empowered SMMEs. A further R143-million was provided as interest free loans and R52-million was grant funding.
Qualitative data from ESD beneficiaries and ESD experts The study also gathered qualitative data. Many ESD beneficiaries expressed gratitude for the opportunity to participate in these programmes. They praised the initiatives for the acquisition of improved business skills, increased confidence in quoting and pricing, expanding business networks and business growth. However, they also highlighted challenges. They expressed their concerns about the red tape, the complexity and duration of the application processes, which could take weeks and even months to complete. They also highlighted the challenge they experienced with access to markets. Small businesses struggle to secure contracts or integrate into the broader market even after receiving funding and business developmental support.
The feedback received from external ESD experts, thought leaders and implementation partners centred around the focus by measured entities on compliance versus impact. They spoke about how companies focus on meeting targets like spending the prescribed 3 % Net Profit After Tax( NPAT) under DTIC Codes rather than ensuring tangible benefits for small and medium sized companies. They advocated for more mentorship, coaching and capacity building for SMMEs.
From compliance to impact The Minerals Council and its members have questioned whether the current framework for socio-economic transformation is effective enough to address challenges in the sector. Compliance with the charter has often opened the door for transformative change but fallen short of real impact on the ground. The current framework relies merely on compliance and presenting inputs – Rand values spent, number of companies benefitting, number of HDSA or women employees etc. This has allowed for the
When it comes to inclusive procurement and ESD, there is an urgent need to develop globally competitive suppliers, that are demographically diverse.
measurement of inputs, but it will no longer suffice. It is time to re-evaluate and design for impact with a shared understanding of what transformed and sustainable sectors ought to be.
When it comes to inclusive procurement and ESD, there is an urgent need to develop globally competitive suppliers, that are demographically diverse. Opportunities for women-owned and youth-owned businesses, specifically should be expanded. Mining operations and businesses in other economic sectors operating in the same region should be intentional and collaborate to establish regional developmental projects, that focus on income generation and job creation.
The industry has been advocating for an enforceable framework that measures‘ Transformation beyond Compliance’: a transformative framework that positively correlates with inclusive growth, one that is people-centred, pragmatic and integrative. It should also be flexible to allow for measurement of impact by various sized companies and various commodities.
MC2018 contained a few elements with 5-year transitional targets; inclusive procurement and ESD, employment equity and human resource development. The mining industry is currently in year- 7 of implementation. The review of the Mineral and Petroleum Resources Development Act( MPRDA) – now the Draft Mineral Resources Development Bill – is an opportunity for all stakeholders to co-create and provide clarity on how socio-economic transformation will be measured going forward. The industry remains committed to being a catalyst for improving the lives and livelihoods of our employees, entrepreneurs and community members through a revised framework that is co-created with transformative impact in mind. •
Introducing Fundiswa Ndaba( MBA), senior policy analyst, Public Affairs and Transformation at the Minerals Council South Africa. Ndaba joined the Minerals Council in 2017 and was instrumental in consultations with the DMPR( then the DMRE) on the development of the Mining Charter 2018 and more recently on the nascent discussions on the MPRDA review. She has also co-led consultations with the Department of Employment and Labour( DEL) on Sectorial Employment Equity target setting. Ndaba’ s advocacy for the mining sector extends across various other government departments, parliament, the labour unions and NGOs on matters, relating to Transformation, including equity ownership, inclusive procurement, ESD and women in mining.
www. africanmining. co. za African Mining Publication African Mining African Mining • August 2025 • 7