Page 42 - 100 years of Anglo American

Growing businesses Anthony Mpati

t was South Africa’s load-shedding crisis former Enterprise Internship Programme
that inspired Anthony Mpati to start (EIP) until a friend sent him a link.
Ihis engineering company, 115 Electrical The EIP hones the skills of high-
Solutions. potential entrepreneurs to create
Mpati spotted a need to provide power sustainable businesses that can create jobs.
services to consumers and “knew Mpati received business support and some
immediately that this was going to be a useful connections from the programme.
definite opportunity for me”. Since he graduated from the EIP, Mpati
“This was a real need ... and it needed to has focused on “projects that will have an
be satisfied as soon as possible,” he says. impact on the communities we work in”.
Always a go-getter, Mpati, who was born “In five years’ time, I want the company
and raised in Seshego, Limpopo, got to be a multidisciplinary business that is
himself a bursary to study electrical a one-stop shop for engineering services,”
engineering at the University of Cape he says.
Town. Starting with two employees, 115
Once he graduated and began working Electrical Solutions now has 43. Mpati is
as an engineer, it didn’t take long for him also mentoring other entrepreneurs.
to start his own firm. Although he knew “I support them and give them practical
about Zimele, he didn’t apply to Zimele’s advice,” he says.

EMPOWERMENT

scenarios for the country, the before Anglo American also understood that small
n 1989, while Anglo American
businesses couldn’t buy raw materials as
executive Clem Sunter was out
delivering his “high road, low road”
cheaply as their larger counterparts, so the
corporation’s chairperson, Gavin Relly, company bought supplies on their behalf and
passed on the discounts. Lastly, Anglo
Iwanted to do something practical. American paid the small businesses promptly
Relly liked the Japanese concept whereby – as fast as 18 days, and not more than 30.
big business was linked with small business, BEE It also helped the smaller companies raise
and he decided Anglo American would finance and compile operational plans, and
procure goods and services from small, black- paired them with skilled companies to help
owned businesses. them learn the ropes.
So he turned to his personal assistant “It was BEE decades before BEE,” says
Philip Baum (who later became CEO of Anglo Baum. Nearly 30 years later, Zimele has been
American SA and the executive member recognised around the world as a best
responsible for the Ferrous Metals division) to Setting a precedent, Anglo practice model in supporting small and
come up with something the company could American partnered with medium enterprises.
implement itself – fast. Lupuwana-Pemba says the company’s three
Relly went abroad and made a speech in black-owned businesses funds include the Community Fund, which is
which he announced that Anglo American managed through 22 small business hubs
would henceforth spend 10% of its long before it was law, around the country which entrepreneurs can
centralised procurement spend with small go to and apply for funding and other
black businesses. This was a John F Kennedy writes Nicki Gules support; the Supply Chain Fund, which helps
“land a man on the moon in a decade” type procurement departments at Anglo
of statement made before Nelson Mandela American’s operations find small businesses
was even out of prison. Anglo American Zimele concluded 204 that can supply products or services; and the
It galvanised the team to get to work for transactions and provided R121 million in Sebenza Fund, a R500 million partnership
what became Anglo American Zimele, the funding for 110 businesses that collectively with Treasury that “aims to provide new and
company’s enterprise development arm. It set employed 3 992 people and generated sustainable employment focused primarily in
an initial target to award R100 million in turnover of R692 million. mining communities and labour sending
contracts with black-owned businesses within Zimele’s founding vision was based on areas”.
five years. three parameters that still exist today, Baum “Through these funds, Anglo American
They met their target in three. says. The first was that the contracts Zimele aims to create a strong platform for
Zimele managing director Hlonela themselves be reduced from long, complicated job creation within and outside the mining
Lupuwana-Pemba, says that, last year alone, documents to just more than two pages. value chains,” Lupuwana-Pemba says.
42 ANGLO AMERICAN 100 YEARS