TRANSFORMATION
development that will enable them to participate meaningfully.
Foresighted development approach model This is mainly aimed at what are generally referred to as strategic large capital projects that are continuously allocated to large national or multinational corporates due to a lack of skills or lack of quality product offering from small businesses. The capacity development programme should incorporate technical capacity development which can ensure effective skills transfer that will prepare small suppliers to: • Partner with the large corporates in providing the required services; and • Develop the necessary skills to start participating in core mining activities through sub-contracting and possibly mutually beneficial joint ventures. The pool of suppliers developed through these models should provide for increased confidence in mining corporates to consider unbundling strategies of large core mining opportunities to enable significant growth of local small businesses.
Access to finance Access to empowerment funding with preferential rates will continue to be a great growth enabler for small businesses that would otherwise receive high interest rate charges from commercial banks due to their risk classification. Various funding instruments paired with closedcircuit verification processes can be employed to enable the small businesses to access funding whilst mitigating against the inherent risk associated with small businesses. These financial instruments may include (amongst others), contract finance, medium term loans, forex facilities as well asset finance. A reliable process of verifying contracts with the employer or mining corporate allow for a seamless de-risking of the finance transaction which will eventually reduce the
74 sabusinessintegrator.co.za
cost of capital which is crucial for small business survival. In facilitating ESD funds, the process must be clearly defined and clearly understood by all parties involved in order to avoid delays that may place undue pressure on the small business cash-flow status.
All key stakeholders must embrace the transformation agenda I believe more can still be done in developing host communities to take meaningful participation in the immediate local economy and eventually in the mainstream economy of the country. However, this can only be achieved when all key stakeholders embrace the transformation agenda in the spirit that it was intended. As we enter the new season of stakeholder engagements through informative and networking events such as the Mining Indaba, the country must clearly communicate the shared value benefits that can be achieved through conscious and deliberate stakeholder collaborations that would ensure efficient utilisation of the ESD transformation levers afforded by legislation, to achieve meaningful economic transformation of host communities.
Gordon Malebo is an ESD strategist assisting corporates to clearly define and craft their transformation strategy.
