Limpopo Business 2018-19 edition

FOCUS Transforming local

FOCUS Transforming local procurement De Beers and Aucor break new ground in Limpopo. De Beers and auction house Aucor on launch day join forces to bring the auction industry to the local communities. The new company is called Aucor Limpopo. Ikefree Projects (Pty) Ltd. is a black youth owned company responsible for building maintenance on mine. Our local business initiatives target local, HDSA youth, women and disabled-owned entities to ensure a lasting impact. De Beers Venetia Mine introduced the EOI (Expression of Interest) process in 2017 to drive the inclusion of local suppliers into the main procurement activities of the mine. The EOI allows for local procurement opportunities in the Musina and Blouberg areas. SMEs that meet the requirements are shortlisted and participate in the tender processes. Since the inception of the programme Venetia Mine has appointed 31 local black-owned SMEs as suppliers, employing more than 200 local people. They are enrolled on the Venetia Mine Supplier Development Programme. The two-year programme includes formal mentorship and training in areas such us Human Resources, Financial Management and Pricing and Costing. These local business initiatives target local, HDSA youth, women and disabled-owned entities to ensure a lasting impact where it is needed most. A company like Ikefree Projects (Pty) Ltd is a black youth-owned company responsible for building maintenance on the mine. Ravujhani Construction and Projects (Pty) Ltd and Amezdo Trading and Projects are black women-owned construction companies. The local procurement transformation aims to assist SMEs to expand beyond the borders of Venetia Mine and become mainstream businesses supporting the socio-economic activities of the local areas. More recently, the bussing empowerment deal with VM Diamond Transport was concluded. A partnership with Africa’s Auction Authority, Aucor, led to the establishment of Aucor Limpopo, which will see 51% of the business owned by a local business from Blouberg. The aim of this venture is to grow the skills and scope of the local partners, teaching them about the intricacies of the auction industry. These are major milestones for De Beers and the Limpopo region. Both empowerment deals are in line with the continuous drive to uplift communities. Enterprise Development Venetia Mine recognises that not all local SMEs can benefit from procurement with the mine and that there is a need to develop new and existing SMEs. The De Beers Zimele Hub introduced a number of changes to be able to better equip the local SMEs. These include: LIMPOPO BUSINESS 2018/19 82

• Focus away from funding support and rather increase support for business development, mentoring and training. • The introduction of the Enterprise Development Incubation Programme aimed especially at conceptual phase businesses or those that have just started to grow. • Training and support through our partnerships with SEDA and the NYDA. • Access to funding at 6% interest rates for qualifying businesses. These programmes are all aimed at growing community-based enterprises independent of the mine, while at the same time developing and equipping these businesses with the necessary skills required in the local procurement and supplier development sphere should opportunities arise. A new incubation programme in the Blouberg labour-sending area will be established which will target 20 small businesses. In 2017, a total of 26 local businesses “graduated” through the De Beers incubation programme and they are all receiving one-on-one mentoring and support in 2018. In addition, 94 local SMEs have benefited from programmes through SEDA, NYDA and the De Beers Zimele Hub. Bussing empowerment deal FOCUS A new bussing empowerment deal invests in local community members, who have a stake in the deal through a 40% share in the new companies. The new bussing companies from the Venetia Mine Employee Bussing Empowerment transaction, ie Hope Diamond Transport (Pty) Ltd in Musina and Millenium Diamond Transport (Pty) Ltd in Blouberg, are a result of a partnership between VM Diamond and BEE partners in the relevant communities. A noteworthy feature of the transaction is that it ensures broad-based participation with very good representation in the shareholding by vulnerable groups like women, people living with disabilities and young people. The BEE shareholders have an option to increase their shareholding above 50% within five years. Gregory Petersen, Senior Manager for Enterprise and Supplier Development, says of the transaction, “We are particularly proud that we were able to ensure broad-based participation with very good representation in the shareholding by vulnerable groups like women, people living with disabilities, but also very importantly, the youth who are our future leaders.” The contract entails supplying transport services for 3 500 employees and contractors from the labour-sending areas of Musina and Blouberg on 48 buses to and from the Venetia Mine every day of the year. The value of the agreements is expected to rise above R600-million over the eight-year period of the contracts. To increase the chances of success of the project, VM Diamond Transport will provide technical training to both of the new companies and De Beers will support the local entities with Business Development Support. 83 LIMPOPO BUSINESS 2018/19