Kumba commits R2bn to small business development

South Africa's leading mining company, Kumba Iron Ore, has made a significant commitment to the development of small businesses within the local communities where they operate. In a recent interview on CNBC Africa, Velsi Masako, the general manager of supply chain at Kumba Iron Ore, discussed the company's efforts to empower local businesses and create economic opportunities for residents. The company's investment of 2 billion rand in small business development has had a profound impact on the surrounding communities, leading to job creation, infrastructure development, and overall economic growth. Masako highlighted the importance of engaging with and supporting local suppliers. Through a structured program of enterprise development, Kumba Iron Ore has helped suppliers enhance their capacity and meet the company's standards for safety and quality. By sourcing a wide range of products and services locally, from safety equipment to mining machinery, Kumba Iron Ore has not only strengthened its supply chain but also fostered a sense of partnership with the surrounding community. One of the key factors in the success of Kumba Iron Ore's small business development initiative has been the active involvement of local community members. By working closely with business forums and setting criteria for qualification as a local supplier, the company has been able to prevent opportunistic individuals from taking advantage of the program. Measures such as residency requirements and verification of credentials help ensure that the benefits of the initiative reach those who truly belong to the host communities. The impact of Kumba Iron Ore's investment goes beyond job creation to include the development of infrastructure and the improvement of living standards in the region. With a growing network of over 320 small businesses, the company has been able to support the livelihoods of thousands of residents, both through direct employment and subcontracting opportunities. As the program continues to expand, the goal is to enhance not only the economic well-being of individuals but also the overall quality of life in the communities they serve. Masako emphasized that the ultimate measure of success for Kumba Iron Ore's small business development program lies in the visible transformation of the local environment. Improved roads, upgraded facilities, and thriving businesses are all indications of the positive impact that the company is having on the region. By empowering local entrepreneurs and building sustainable partnerships, Kumba Iron Ore is not only investing in the future of its operations but also in the long-term prosperity of the communities that surround them. The company's commitment to continuous growth and development is reflected in its ongoing investment of 2 billion rand per year in small business initiatives. With no upper limit on the potential impact of the program, Kumba Iron Ore remains dedicated to driving positive change and creating opportunities for sustainable economic development in South Africa. As Masako succinctly put it, 'That's the target, but that's also the flow.' The company's bold vision for inclusive growth and community empowerment serves as a beacon of hope for the mining industry and beyond.