Anglo American and Kumba Iron Ore launch funding facility for SMEs in South Africa
As South Africa grapples with economic challenges, this initiative by Anglo American and Kumba Iron Ore represents a beacon of hope for SMEs, promising to not only stimulate local economies but also generate sustainable job opportunities for communities in need.
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Anglo American and Kumba Iron Ore launched the Impact Finance Facility (IFF), a catalytic funding facility designed to unlock growth capital for small and medium-sized businesses in under-served South African regions.
The launch, which took place on the margins of Mining Indaba 2026, follows the November 2025 partnership announcement between Anglo American and the UK’s Foreign, Commonwealth and Development Office (FCDO).
The facility addresses a critical market gap: early and growth-stage businesses that are commercially viable but chronically under-served by traditional investors due to perceived risk and high capital costs.
By providing flexible, low-cost repayable loans, the IFF aims to attract at least three times more funding from other investors for every rand invested.
Kumba Iron Ore has committed R51.2 million to the facility over five years (2026–2030) that will be dedicated to driving impact specifically in the Northern Cape.
This commitment complements the FCDO’s £4.5 million (R100 million) announced in November 2025 investment over four years to scale the facility and provide technical assistance to innovative businesses as part of Anglo American’s Impact Finance Network (IFN) programme.
The IFN supports long-term development in regions where Anglo American operates by helping local SMEs become ‘investment-ready’ and connect with a network of social investors.
The facility builds on the IFN’s proven pilot model that unlocked R52.6 million in third-party investment from just R5.35 million of catalytic capital.
Mpumi Zikalala, CEO at Kumba Iron Ore said, “The Northern Cape is home to our people and our operations. This R51.2 million commitment reflects our belief in economic diversification and our responsibility to support thriving regional economies that will endure well beyond mining. We are backing businesses that create jobs and strengthen communities across South Africa.”
Antony Phillipson, British High Commissioner to South Africa, added: "This partnership exemplifies how development finance and private sector leadership can work hand in hand to drive inclusive growth. By providing risk tolerant capital to innovative businesses, we are helping build resilient local economies and supporting the creation of sustainable jobs across South Africa.”
Emma Parker, Sustainable and Impact Finance Manager at Anglo American, said, “The Impact Finance Facility demonstrates what becomes possible when the right kind of capital is paired with the right kind of support. Our market testing has already surfaced 33 investment-ready deals worth R576 million. This facility is not a pilot – it is a proven model being scaled to drive inclusive growth in regions that have historically been underserved.”
The facility will support businesses across green and circular economy solutions, digital innovation, agricultural value chains and sustainable livelihoods sectors.
BUSINESS REPORT