R1.8bn Mobilised for Southern African SMEs Through Expanding Funding Network

R1.8bn Mobilised for Southern African SMEs Through Expanding Funding Network. Anglo American’s Impact Finance Network (IFN) has mobilised more than R1.8 billion in third-party capital for businesses across southern Africa since its launch in 2021.

The network has supported more than 162 businesses with investment readiness, technical assistance and access to networks, with the supported businesses contributing to more than 46,000 livelihoods across the region.

The milestone was highlighted at this year’s InvestFest, an annual event convened by IFN in partnership with the UK Government and the Anglo American Foundation. The event connects entrepreneurs with investors and other participants in the funding ecosystem.

This year’s InvestFest placed a focus on youth entrepreneurship and the creative economy. A Youth Zone was delivered with SA Youth, while a Creative Studio zone was established to connect creative businesses with potential investors and customers.

One example of the funding approach is Keyo Ventures, a southern African venture capital fund providing early-stage alternative financing to green businesses.

The fund was founded by entrepreneur Grace Legodi, who identified funding gaps affecting smaller businesses, particularly those pursuing green opportunities, during her decade in investment banking.

Through IFN, Keyo Ventures received an initial R2 million catalytic investment. According to the organisation, this helped the fund secure a further R35 million commitment from an institutional investor.

Emma Parker, Sustainable and Impact Finance Manager at Anglo American, said catalytic funding could help de-risk opportunities and attract additional investment.

The UK Government is contributing £4.5 million to expand the IFN programme and provide practical support to businesses preparing for investment.

Anglo American’s Kumba Iron Ore has also committed R51.2 million over five years through its Impact Finance Facility to support businesses in the Northern Cape.

Kumba CEO Mpumi Zikalala said the initiative was intended to contribute to a more diverse and resilient regional economy.