Small Business Funding Boost from Anglo
One of South Africa's major mining forces recently announced a massive boost in funding provided to BEE start-ups in the country. Bringing some welcome good news to the start-up sector the article confirms that there is plenty of hope for entrepreneurs with solid business plans.
According to the Business Day newspaper, Anglo American’s most recently established fund, the Small Business Start-Up Fund, approved 179 loan transactions for small businesses to the value of R51,9m as at end December 2008. "This funding provided seed and working capital for rural-based SMEs to play a sustainable role in their respective communities in the proximity of Anglo American’s operations," the statement said.
The enterprises collectively employed 1,647 people, it said. On the enterprise development front, the collective turnover by the 228 companies in the Anglo Zimele Supply Chain Fund, Small Business Start-Up Fund and Anglo Khula Mining Fund portfolios amounted to R1,3bn which, added to the procurement spend of R23,3bn,totaled R24,6bn. Anglo American SA’s cumulative BEE procurement spend since 1993 has reached some R79,1bn, the group said.
"It is through supporting deserving and passionate entrepreneurs that Anglo makes a wider, meaningful and lasting contribution to the efforts to erase poverty and unemployment and contributes to sustainable and inclusive economic growth and development in SA," Kuseni Dlamini, head of Anglo American SA, said.
This a big boost in both finance and confidence in those starting businesses in the current climate where only the best business plans will raise the cash required to start.