Creating meaningful opportunities for entrepreneurs and small businesses is central to Exxaro's strategic objective of empowering people to create impact. Our ESD programme aims to create employment and market access for SMMEs, and a legacy for host communities β building capabilities, driving economic transformation and fostering sustainable communities.
Tshikondeni pitch for funding winners
Belfast pitch for funding session
Exxaro collaborated with Sedfa in hosting two events (SMME day and pitch for funding) for aspiring entrepreneurs, and micro and survivalist enterprises. These events aimed to foster ideation and small enterprise development in Exxaro's host communities.
We held three SMME days for host communities In KwaZulu-Natal and Limpopo, where our mines in closure are located. With approximately 180 SMMEs in attendance, the events aimed to connect SMMEs with development support institutions.
The pitch for funding event was hosted in nine of our host communities, with over 500 participants attending the masterclasses. The event included a competition for best business pitch after participants received training on developing and articulating a business model. Three winners in each community were chosen, receiving R250 000 in grant funding.
The winning 27 small enterprises will also be given an opportunity with Sedfa to co-develop and implement growth strategies.
The programme is a three-year partnership with SAICA Enterprise Development, where small enterprises are taken through the importance of financial management and compliance, assisted with bookkeeping services and mentorship on managing business finances over a 12-month period.
The third and final cohort of 57 beneficiaries graduated from the financial excellence programme in 2024. The supported enterprises benefited from the support and mentorship and demonstrated the following key outcomes at the end of the programme:
ESD initiatives are a key component of our socio-economic development response and support the SMME development pillar of our Social Impact strategy. Guided by the principles of empowerment, collaboration and resilience, our approach ensures meaningful engagement with host communities and alignment with South Africa's national development goals. Our ESD programme is built on:
Accountability and responsibility
The ESD committee is responsible for integrating, embedding and implementing ESD objectives within Exxaro.
Regulatory compliance
Our initiatives align with Exxaro's B-BBEE and SLP obligations. We are also guided by the Department of Small Business Development's SMMEs and Co-operatives Funding Policy (April 2023), as well as the Preferential Procurement Policy Framework Act.
Beyond compliance
Exxaro's ESD programmes not only contribute to the group's B-BBEE score but also exceed the minimum standards set by local, provincial and national government. We amplify our impact by leveraging co-funding from development financing institutions.
Exxaro's ESD programme promotes inclusive economic participation by addressing systemic barriers faced by emerging enterprises. We create opportunities for black-owned suppliers and entrepreneurs through financial support, such as grants, zero-interest loans and non-financial assistance, including partnerships with external service providers and incubator hubs. Each hub in an SLP area offers three-year programmes to support and develop SMMEs and serve as a key enabler in advancing enterprise capabilities and strengthening our local supply chain.
The programme delivers sustained stakeholder value by:
Our ultimate goal of economic transformation is supported by the following strategic objectives:
Ensure compliance to Mining Charter III targets
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Comply with dtic B-BBEE Codes of Good Practice
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Contribute to the maintenance and improvements of B-BBEE score
Invest in businesses with high-growth potential that can operate beyond the mining value chain
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Ensure the programme's financial sustainability through the optimal use of financing models, including loans and grants, and continuous monitoring of financial performance
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Drive the achievement of preferential procurement objectives through ESD initiatives
Contribute towards social cohesion and sustainable community development
| 2024 | 2023 | 2022 | ||
| Approved spend (Rm) | 169.8 | 111.3 | 291.2 | |
|---|---|---|---|---|
| Jobs retained (number) | 286.0 | 355.0 | 1037.0 | |
| Beneficiaries (number) | ||||
| Qualifying small enterprises (QSEs) and exempt micro-enterprises (EMEs) | 58 | 14 | 30 | |
| Youth-owned | 22 | 1 | 16 | |
| Women-owned | 21 | 9 | 9 |
The provincial breakdown of beneficiaries highlights the focus on beneficiaries from host communities.
Provincial spread of supported QSEs and EMEs (total: 58)
ESD approvals per year
ESD programme beneficiaries
The decline in job figures in 2023/24 is attributed to the graduation of the 2018 cohort (after being part of the programme for five years as per B-BBEE regulations) and the 2 649 jobs they added to the jobs figure, as well as an actual job loss of 858 jobs attributable to contract losses/end of contracts.
Of our total approved spend, over R130 million was dispersed through grants and zero-interest loans in 2024. Since the programme's inception, ESD approvals have consistently increased, overcoming setbacks experienced during the COVID-19 pandemic and economic downturn since 2020. By the end of 2022, the programme achieved self-sustainability, enabling new beneficiaries to be supported through loan repayments rather than requiring additional budget allocations.
Funding from repayments played a pivotal role in securing Exxaro's overall B-BBEE performance target. The ESD programme aims to achieve a target score of 9 out of 15 points, with anticipated performance in 2024 reaching 13.72 points, contributing significantly to Exxaro's level 3 (or better) B-BBEE status.
Efforts to leverage co-funding have bolstered the programme's impact. Although a youth-focused fund with a provincial development finance agency faced delays due to financial challenges, engagements with two development finance institutions to raise co-funding through Exxaro's loan administration service provider are set for favourable completion in 2025. Additionally, under the MSP, R30 million was secured from the Sedfa and R100 million from the Land Bank to support emerging farmers, demonstrating the programme's ability to amplify resources and enhance its reach.
Loans advanced
R117.28 million
(2023: R184.95 million)
Loan repayments
R84.69 million
(2023: R103.48 million)
Outstanding loan book
R378.14 million
(2023: R339.20 million)
Settled loans
R88.70 million
(2023: R62.38 million)
| GIBS contractor development programme | SAICA Enterprise Development financial excellence programme |
| 47 | 57 |
| beneficiaries graduated from the programme | beneficiaries graduated from the programme |
|
(2023: 50) |
(2023: 58) |
| The accredited course includes customised mining and Exxaro-specific content to maximise its impact and relevance. To broaden our impact, we have initiated a project to identify an implementation partner for an expanded version of the programme. | The programme provides monthly access to a business and finance coach as well as accounting, back office, tax, human resource management and Companies and Intellectual Property Commission compliance support. The latest cohort celebrated their graduation in November 2024 (read the case study below). |
The ESD Hub in Lephalale aligns its intake with the localisation objectives of Grootegeluk, with incubatees positioned in areas the BU has earmarked for future opportunities. Sub-contractors in explosives handling and fuel logistics are supported by the ESD programme, supply chain management and co-developed with existing suppliers.
The ESD programme has supported several sub-contractors and first-time contractors, with compliance workshops conducted to ensure host community small enterprises meet legislative requirements. We will amplify and mature these initiatives during 2025.
We rolled out SMME day in communities surrounding our mines in collaboration with Sedfa and other small enterprise development organisations. This initiative addressed perceptions that our ESD support programme does not cater for the broader SMME sector by partnering with other development institutions to support micro and survivalist enterprises.
We introduced a pitch for funding programme in collaboration with Sedfa in nine host communities. Through this initiative, we provided 27 small enterprises with grant funding of R250 000 each to support their business growth.
Our primary focus in 2025 will be:
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