Northern Cape gets boost with R51m SME funding injection

ANGLO American and Kumba Iron Ore have launched the Impact Finance Facility (IFF), a funding initiative aimed at supporting small and medium-sized businesses in underserved areas of South Africa. The launch follows a partnership between Anglo American and the UK's Foreign, Commonwealth and Development Office (FCDO) announced in November 2025.

The IFF provides flexible, low-cost loans to early-stage and growth businesses that are viable but struggle to secure funding from traditional investors. Kumba Iron Ore has committed R51.2 million to the facility over five years, focusing on the Northern Cape region.

Mpumi Zikalala, CEO of Kumba Iron Ore, said, "The Northern Cape is home to our people and our operations. This R51.2 million commitment reflects our belief in economic diversification and our responsibility to support thriving regional economies that will endure well beyond mining. We are backing businesses that create jobs and strengthen communities across South Africa."

The facility is part of Anglo American's Impact Finance Network (IFN) programme, which supports development in areas where Anglo American operates. The FCDO has invested £4.5 million (R100 million) over four years to scale the facility and support innovative businesses.

Antony Phillipson, British High Commissioner to South Africa, said, "This partnership exemplifies how development finance and private sector leadership can work hand in hand to drive inclusive growth. By providing risk-tolerant capital to innovative businesses, we are helping build resilient local economies and supporting the creation of sustainable jobs across South Africa."

Emma Parker, Sustainable and Impact Finance Manager at Anglo American, said, "The Impact Finance Facility demonstrates what becomes possible when the right kind of capital is paired with the right kind of support." Our market testing has already surfaced 33 investment-ready deals worth R576 million. "This facility is not a pilot; it is a proven model being scaled to drive inclusive growth in regions that have historically been underserved."

The facility will support businesses in sectors including green and circular economy solutions, digital innovation, and sustainable agriculture.