A project management and mining solutions company in Middelburg, Mpumalanga has not only increased its turnover considerably since becoming a supplier to Anglo American, but has also secured over R1 million in funding through the mining giant’s enterprise development initiative, Zimele.
Vista Wa Seroka Trading Enterprise supplies and delivers tools and equipment to Anglo American’s global shared services office.
Owner Vusi Seroka says its contract with Anglo American contributes to over 80% of the company’s annual turnover.
According to Seroka, doing business with Anglo has opened other doors for them and they have subsequently secured contracts with commodity trading and mining company Glencore Xstrata, minerals mining company Exxarro and one of the biggest steel companies, Columbus Stainless.
“I now have a great platform from which to become a successful entrepreneur by expanding into other business ventures such as doing business with major industrial firms.”
He says the company has a ten-year contract with Anglo American and he does not have to reapply for the contract should Anglo be satisfied with their work.
Vista Wa Seroka, which has been in operation for six years, has also received R1.5 million in loan funding from Anglo American’s enterprise development arm, Zimele.
Zimele consists of five separate funds, namely the Supply Chain Fund, the Anglo American Sefa Mining Fund, the Community Fund, the Green Fund and the Sebenza Fund. Funding is provided according to the individual needs of a business and can be up to R10 million per project or business.
Business owners are provided with support and mentorship as part of the funding process.
Seroka says he used the funding to buy two bakkies, office furniture, pay employee salaries, purchase materials and keep the company afloat.
The loan also made it possible for him to employ several people from the local community.
Zimele not only provides funding to businesses in the Anglo American supply chain but also to businesses in other supply chains as well. Businesses in all sectors are welcome to apply.
Impenthana Projects and Maintenance, a company that provides building maintenance, facilities management, bush clearing and grass cutting services, applied for funding under Zimela’s Sebenza Fund.
Zimele funded the business with approximately R800 000 which enabled the owner, Zaliah Stoltenkamp, to improve her company’s service delivery. “As an upcoming enterprise, cash flow is always a major problem as our clients don’t pay us immediately and we have to wait up to 30 days for our invoices to be paid. With the funding we received from Anglo we could pay our suppliers and workers.
Without the funding we would not have been in the position to complete and continue with our projects. And by completing our projects we were able to get more work from our existing clients.”
From 2008 to the end of 2012, Zimele’s four funds have provided R708 million in funding, supported 1 393 companies and completed 1 972 loan transactions.
To qualify for funding under the Zimele programme, the following criteria must be met:
- The business must have a large black shareholding and management structure.
- The owners of the business must be involved on a day-to-day basis in the management or operation of the company.
- The owners of the business must be part of the local community where the business operates.
- The owners of the business need to contribute to the business from their own financial resources.
- Loans must be repaid in good time.
- The business must have scope to grow and be sustainable.
- The business should care for the environment and be safety conscious.
Applications must be accompanied by a business plan and submitted to a local Zimele hub manager or fund representative.