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Exxaro and enterprise development
Posted by Daniel Makhura on 31 August 2017 8:50 AM SAST
More info about the above
Enterprise development is a strategic focus area for Exxaro. To address the unemployment and poverty concerns in its identified communities, Exxaro is implementing a number of Enterprise Development projects, the overall objective of which is to assist and accelerate the economic development, sustainability and ultimate independence of beneficiary enterprises.
Exxaro is committed to the long-term support of entrepreneurs,
and in 2010 invested in the construction of formal outlets
for hawkers in Kriel, Mpumalanga. In addition to providing
infrastructure support, we helped develop their business
acumen by providing business skills training. The initiative has
subsequently been handed over to the municipality to ensure
sustainability of the project and currently supports eight
beneficiaries who sell goods and provide services to the local
community.
As well as an improvement in their business abilities, the
hawkers also benefitted from improved working conditions,
resulting in a sense of security. However the SROI(Social Return on Investment) showed a return of less than R1. This was shown to be primarily
due to poor project design and insufficient engagement with
beneficiaries to inform the location and physical design of the
outlet structures. Learnings from this will be taken forward future projects.
Moreover, Together with non-profit organisation Shanduka Black Umbrellas
(SBU) and Anglo American’s Sebenza Fund, we support 100%
black-owned enterprise development and supplier development
beneficiaries through business incubation programmes. These
incubation programmes, such as the programme presented at
the Lephalale Enterprise Development Centre, provide formal
entrepreneurship training, access to business funding and ongoing
business support, mentoring and coaching to 100% black-owned businesses.
Our aim for these incubation programmes is to:
• establish a process to make them sustainable; • provide business support, including individual hands-on
mentoring and coaching; and
• assist with accessing funding.
The centre will be evaluated on its SROI in due course. Plans are in
place to develop a similar centre in Mpumalanga.
Some initiatives that were supported by Exxaro:
Boithlamo Brickmaking
SROI: 2,49
Rapid development in the town of Lephalale, Limpopo, largely
due to the construction of the Medupi power station and Exxaro’s
expanded mining activities to support the power station, has
substantially increased demand for housing. Responding to this
business opportunity, Exxaro funded a brick producing enterprise.
Established in 2011, the Boithlamo Brickmaking Project is now a
well-established brick plant that produces and sells quality building
bricks to the local and surrounding communities.
Taking success a step further, 24 graduates of Exxaro’s Mogolo
Academy, located in the same town, have established their own
civil enterprise called Boithlamo Construction Development. The
company opened for business in February 2011 and now employs
six permanent staff.
Siyathuthuka Butterfield Bakery
SROI: R3,25
Situated in Emakhazeni (Belfast), near Exxaro’s NBC business unit
in Mpumalanga, the Siyathuthuka Butterfield Bakery complements
the countrywide need for nutrition and enterprise development
in communities affected by poverty and unemployment. In a
joint agreement with Butterfield Holdings, the bakery franchise
provided the necessary operational training for the first six
months, while Exxaro provided the financial support.
The 100% black, locally-owned bakery outlet employs 16 people including 12 women and one disabled person and indirectly
benefits a further 64 people. It also adds economic benefits
for community members, schools and feeding programmes by
offering cheaper alternatives. Direct economic benefit through
permanent employment accounts for 46% of the total social value
created, while regular income has led to other positive impacts,
such as reduced substance abuse and increased self-esteem and confidence among youth beneficiaries.
