Anglo American’s Impact Finance Network (IFN) has mobilised more than R1.8bn in third-party capital for businesses across southern Africa since its launch in 2021, while supporting more than 162 businesses with investment readiness, technical assistance and access to networks.
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 to connect entrepreneurs with investors and other participants in the funding ecosystem.
The programme says the businesses it has supported have helped sustain more than 46,000 livelihoods across southern Africa.
This year’s InvestFest placed particular emphasis on youth entrepreneurship, with a Youth Zone delivered with SA Youth, as well as the creative economy through a Creative Studio zone aimed at connecting creative businesses with potential investors and customers.
Funding designed to unlock further investment
One example of the approach is Keyo Ventures, founded by entrepreneur Grace Legodi after she identified funding gaps facing smaller businesses, particularly those pursuing green opportunities, during her decade in investment banking.
Keyo Ventures is a southern African venture capital fund providing early-stage alternative financing to green businesses.
Through IFN, the fund received an initial R2m catalytic investment, which the organisation says helped it secure a further R35m 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 follow-on investment.
The IFN aims to use similar connections between businesses, investors and support networks to help growth-stage businesses access capital and expertise.
Focus on youth and regional economies
The event also brought together government, investors and entrepreneurs around youth entrepreneurship and economic participation.
Josephine Hetherington, Head of Economic Development at the British High Commission in South Africa, said entrepreneurship could help young people create opportunities for themselves and others.
The UK Government is contributing £4.5m to expand the IFN programme and provide practical support to businesses preparing for investment.
Anglo American’s Kumba Iron Ore has also committed R51.2m 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, citing the impact of connecting entrepreneurs to capital through a mini-InvestFest held in Kathu.
The release does not provide a breakdown of the R1.8bn mobilised by sector, business size or funding type.
