Bringing economic development and wealth to the local community by training and developing SMMEs

LonminLonmin-IFC Supplier Development Programme

Country: South Africa
Contract Period: January 2009 - June 2010
Client: IFC

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In the news: 07 Apr 2010: The Lonmin-IFC Supplier Development Programme Creating Wealth and Skills in the Greater Lonmin Community

The Lonmin-IFC Supplier Development Programme is an 18-month programme aimed at the provision of training and development for small and medium-size enterprises (SMEs).  The main objective of the programme is to bring economic development and wealth to the local community of Marikana in the North-West Province through the development and training of local SMMEs into competitive suppliers to the Lonmin Marikana Mines. The programme aims to increase Lonmin’s spend on locally produced goods and services and increase the number of SMMEs doing business with Lonmin.

This ambitious programme attempts to bring about economic and social upliftment of the Greater Lonmin Community (GLC), an area of about 15km radius around Lonmin’s Marikana mines in the North-West Province.  The GLC population is estimated at around 250 000 and is characterized by high unemployment. The programme is boosting capacity for SMMEs and delivering economic empowerment to these communities. These objectives are achieved through two main interventions: The SMME Capacity Building and Support Programme (supply-side intervention) and the Opportunities Identification, Structuring and Awarding Programme (demand-side intervention).

Supply-side interventions include SMME diagnostic assessments and development needs analysis, business management training, systems coaching and set-up and financing facilitation. After twelve months, 140 individuals representing 90 GLC SMMEs have taken part in the programme.

Demand-side interventions entail identification of supply opportunities for local (GLC) companies in Lonmin’s supply chain, structuring these into contracts and the identification of suitable GLC suppliers (which sometimes involves formation of joint ventures between GLC companies and more experienced non-GLC expert companies). To date, ZAR 280-million worth of contracts have been awarded from which 37 GLC companies have benefited.