Mondi Zimele contributes to local economic recovery

Mondi Zimele (MZ) is the small business development arm of Mondi Ltd in SA. MZ provides equity, loans and business development support to employment creating small businesses within the Mondi value chain and surrounding communities.

MZ’s grassroots food security and agricultural development programme assists communities in establishing and improving small farms in and around Mondi and SQF forestry areas in Zululand. Nine co-operatives and three individual farmers are currently enrolled in the programme, which benefits over 2,100 households across the region.

“Employment opportunities in rural areas are challenging and due to the Covid-19 pandemic, the situation has worsened. Food security is a top priority within our communities and we recognised that we need to help our communities optimise what they have at their disposal, which is fertile land,” explained Nelly Ndlovu, Chief Executive Officer of MZ.

“The first aim is subsistence,” said Ndlovu, “but we are identifying those with the potential to upscale their farms to small businesses. We provide basic agricultural and business training. We also work closely with Mondi and SiyaQhubeka Forests to improve infrastructure, where possible, and look to leverage government and development agency support.”

MZ appointed a full-time agricultural extension officer, Tholinhlanhla Dindi, to assist people in establishing, maintaining and improving their small farms. We then connect farmers with markets for the sale of excess produce.

“This landscape is excellent for farming and farms can produce from January to December. It means that our farmers can supply in the off-season, which puts them in a good position for the market. Rainfall is sufficient and the soil quality is good,” said Mrs Dindi.

The programme’s success is evident in the empowerment of women and youth. The end goal is to create sustainable livelihoods with growth potential, resulting in both social and economic mobility. A total of 87 hectares of land, of which 67 hectares of land is a groundnut intercropping project at Mondi’s forest plantation in Umfolozi is currently part of the programme and 237 members are working on these projects.

Forestry Contractors Support

Mondi Zimele also supports forestry contractors based in Zululand, six of whom are on MZ’s development and support programme. In 2019, these contractors received discounted loan funding valued at R16-million and other development and support interventions, including training in financial management, tax and corporate governance.

MZ is committed to developing and supporting small businesses and encouraging job creation for a thriving economy. We continue to work closely with the businesses under our support programme, providing business development coaching and mentorship, using our toolsets and methodology to identify production efficiencies and sustainability. MZ will continue to provide the necessary training to entrepreneurs to provide them with the skills required to operate in the ‘new normal’.

Mondi Zimele Covid-19 SME Support Fund

Mondi Zimele established a Covid-19 Emergency Fund to help mitigate the impact of the national State of Disaster and lockdown on small and medium businesses. The Fund made available business support services, including financial support at discounted interest rates to MSA suppliers.

MZ recognised the importance of helping ensure the sustainability of Mondi’s supply partners. Many small businesses faced cash flow constraints and struggled to sustain employment of staff. MZ provided loan funding and offered deferred payment holidays to existing investees to support cash flow constraints.

Nine businesses received relief loan funding support and deferred loan payments. This resulted in excess of 174 permanent and 75 temporary jobs being sustained.

One of the business owners said, “We greatly appreciate the assistance of Mondi Zimele and for granting us the loan. The funds received allowed us to maintain our operations and help sustain jobs throughout the Covid-19 pandemic.”