Kroonstad: De Beers aim to make a lasting, positive contribution to the communities in which they operate in order to become the development partner of choice. To accomplish this, they seek to create and maintain mutually beneficial relationships by understanding and maximising the positive influence they can have on local development – whether by capitalising on the strengths of their core business; through local procurement, enterprise development or focusing on local institutional capacity building.
De Beers was proud announce that Anglo Zimele has approved a loan of R4.2 million to Multi Transport towards the funding of Mmetlakgola Transport contribution. Mmetlakgola was formed by 36 members of two Kroonstad Taxi Associations in 2016, which also owns a 26% share in Multi Transport through an empowerment deal facilitated by De Beers for the transportation of its employees.
In 2015, two taxi associations approached Voorspoed Mine looking for opportunities as service providers. With Multi Transport’s contract due for renewal, De Beers proposed a business model that led to the two entities purchasing shares and signing a five year bussing contract for Voorspoed Mine.
The new business model required Multi Transport to acquire a BEE shareholder with a 26% share and the option to buy an additional 5% per year stake in its business. The deal was set up to allow the BEE partner to play a very active role in the business and have the option to obtain a majority share of the business within five years.
Discussions on the new transporting contract began in 2016, and Mmetlakgola managed to raise R260 000 to buy 26% of Multi Transport. De Beers Zimele through loan funding, contributed R 4.2 million towards the purchasing of new busses for Mmetlakgola Transport. Repayment of the loan will allow Zimele to assist the next up and coming small business.
As part of the De Beers socio-economic development strategy, Mmetlakgola Transport will also participate in a two year business development programme sponsored by De Beers through the Zimele Hub. Since its inception in 2011, the Zimele hub has supported 262 enterprises, leading to the creation of 3 054 jobs to date.