Diversified miner Anglo American on October 8 and 9 hosted its third impact investment event highlighting the efforts of its Impact Finance Network (IFN), which has successfully supported businesses to raise growth capital since 2021.

The IFN has helped to close 18 deals benefitting more than 70 companies and supporting 6 383 jobs in South Africa. These deals have unlocked about $24-million in capital investment.

In Southern Africa, 15 companies have benefited from the IFN’s support, with six deals having been realised, supporting 22 100 jobs and unlocking $25-million in capital investment.

Anglo sustainable business opportunities principal Emma Parker confirms that the company has a further $150-million of potential deals in the pipeline.

She says the network helps solve the challenges that many businesses and investors face in finalising deals, including investment readiness and matching the right shareholders.

The IFN has grown to include a diverse range of stakeholders including foundations, banks and development agencies, to foster constructive dialogue and better support enterprises in Southern Africa, including in Namibia, Zambia, Zimbabwe and Botswana, as well as South Africa’s Limpopo, Mpumalanga and Northern Cape provinces.

The network forms part of Anglo’s Sustainable Mining Plan, which has ambitious goals of advancing a healthy environment, thriving communities and trusted corporate leadership.

The company emphasises meaningful partnerships to create long-term positive impact locally, regionally and nationally.

Impact Capital Africa project lead Tiffany Moore says the IFN is differentiated in that it makes efficient use of Anglo’s balance sheet capital to accelerate local market-based solutions, while addressing sustainable development agendas at scale.

She adds that the support of Anglo’s implementing partners, Impact Capital Africa and Edge Growth, is targeted at specific gaps that businesses experience in raising capital.

In turn, the IFN provides investors with a pipeline of investment-ready businesses. The partners to the network help to identify eligible businesses and maximise the chances of a deal close by ensuring businesses are investment-ready through targeted technical assistance and transactional support, Edge Growth co-founder and director Anton Kleingeld elaborates.

Some of the businesses that IFN has supported include sneaker manufacturer Bathu Swag, dairy alternative manufacturer Dittolabs, card-linked instalments platform Float, delivery service GoBuddy, education technology provider Gradesmatch and mobile car repair platform Michanic.

Anglo and its implementing partners believe that having more businesses and investors join the IFN, the network can further scale sustainable development in Southern Africa and deepen socioeconomic impact in these economies.

CASE IN POINT

Anglo signed a memorandum of understanding with consultancy EY to provide 100 hours of pro bono business support to Southern Africa-based small- and medium-sized enterprises through IFN.

The EY team will provide their expertise through their global corporate responsibility programme called EY Ripples. Through this collaboration with IFN, EY aims to help participating impact enterprises improve their businesses, gain market knowledge and maximise their investment potential.