Mpumalanga SMMEs grow due to investment from Exxaro
Since early days, Malaza completed multiple projects for Exxaro and won a competitive bidding process for a five-year contract.
Mshoza Malaza was born and bred in Siyathuthuka, Belfast, in humble circumstances. He worked in the mining industry for 10 years, where he gained experience in social, political and corporate business issues.
In 2016, he established UMI Plant Hire and Equipment, taking on small infrastructure and road projects for the Emakhazeni Municipality and other mines in the area.
Since those early days, Malaza has completed multiple projects for Exxaro and won a competitive bidding process for a five-year contract with the company and contracts with other mining companies.
“I am grateful to Exxaro because they participated in our community meetings to discuss their social and labour plans and their CSI initiatives. While we were dealing with several community issues, Exxaro informed us about their enterprise and supplier development (ESD) funding opportunities for local SMMEs. They explained their requirements and some of us were successful in accessing capital to scale up our businesses to what we have today.”
Malaza is just one of the 173 entrepreneurs from Exxaro’s host communities which the company has assisted over the last three years to make a meaningful impact by providing entrepreneurs and locally owned SMMEs with grants and interest-free loans to grow their businesses.
Lazarus Ramashilabele, General Manager for Exxaro’s Mpumalanga Coal mines and FerroAlloys, says Empowering and positively impacting our communities toward socio-economic sustainability is part of our DNA. “Rural and community-based small businesses have lagged behind in accessing funding that can help them grow and become sustainable, leaving entrepreneurs frustrated,” said Ramashilabele.
“The potential of these unique businesses is overwhelming and we are proud to play a part in driving this next generation of businesses to unlock the talent within our host communities. With the right support, it is these very people who hold the key to reducing poverty and inequality in these areas.”
Thokozane Mangana, Managing Director of logistics company New Era Commerce has been operating at Exxaro since 2015 and today has progressed to a national presence with a fleet of refrigerated trucks operating across South Africa. In addition to access to the market, she has negotiated shorter payment terms with Exxaro which assists with managing cash flow.
“The support that we have received has been enormous, I can’t even quantify it. Exxaro has given us a long-term contract that has provided us with the security of tenure, so it gives us some sort of sustainability in the industry. We were able to employ on average 60 people from equipment operators to machine operators and cleaners.”
Exxaro’s Enterprise and Supplier Development (ESD) Manager, Dr Lusapho Njenge said the company’s unwavering support for its host communities is driven by its commitment to achieving the United Nations Sustainable Development Goals. This global standard provides a holistic framework to guide corporations on how to best contribute to meaningfully improving the lives of vulnerable citizens.
“Through our ESD programmes, we are contributing towards the UNSDG objectives of ending poverty and hunger; creating decent jobs and economic growth; developing sustainable communities; and reducing inequality. Corporations can no longer operate in silos but must instead put people at the centre of all its business decisions.”
Mangana points out that the Exxaro business has helped the company to make an impact in its community.
“From a charity point of view, we have been able to assist other small businesses and community projects which gives us a tremendous sense of pride.”
And Bethal born Nkosana Nkosi who runs a maintenance and construction company, Troy Holdings, employs 36 staff from the Bethal community.
“Exxaro gave us an opportunity to contribute to the economy by employing people from the community of Bethal. Through our business with them, I have learnt leadership skills, how to deal with people and gained the experience of working at the mine.”
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