Local supplier development
ZIMBABWE'S largest platinum producer, Zimplats, remains committed to establishing a better future by developing economically selfsustaining and inclusive mine communities, a commitment which aligns with aspirations of
government to transform Zimbabwe into an upper middle-income economy by 2030. It
also aligns with sound environmental, social and governance (ESG) principles, and with the United Nations Sustainable Development Goal (SGD's) and with the country's national development agenda. The latter is premised on several priority areas that include economic growth and stability; food and nutrition
security; value chain and structural transformation; and development of infrastructure and utilities.
An example of private sector initiatives in supply chain development, is the Local Enterprise Development (LED) programme launched by Zimplats in 2013. The aim of the programme is to capacitate and grow small and medium enterprises, that are integrated into the company's supply chain.
The initiative according to Zimplats, aligns with the company's broad objective of creating a better future for all stakeholders, through the metals it produces and the way in which it does business.
The national Local Content Strategy that runs between 2019 and 2023 seeks to improve local content levels in prioritised sectors such as mining and manufacturing from an estimated 25 percent to around 80 percent. In line with the national strategy and Sustainable Development Goal 10.2, Zimplats prioritises procurement from local suppliers and enterprises. The platinum miner had spent over US$300million, investing in the development of local small and medium enterprises since the LEDs programme' s inception.
In the 12 months ended June 2022, the platinum giant heightened its social performance agenda by consolidating its
structured Local Enterprise Development (LED) programme focusing on previously disadvantaged groups that include women and youth. Overall, the LEDs programme helps build a resilient supply chain for Zimplats and fosters economic and social development of communities in which the platinum producer operates.
In pursuit of its commitment to local supplier and enterprise development, total discretionary spend over the last 12 months
amounted to US$552.5 million.
Local Enterprise Development Programme (LEDs)
In line with SDG 8.3, Zimplats supports the development of resilient local enterprises for participation within the business value chain
and beyond. Currently, the LED programme comprises 22 small-to-medium enterprises (SMEs), 32 percent being youth and women enterprises, all with guaranteed level of business with Zimplats and continuous entrepreneurial development to grow their business beyond Zimplats.
Some of the enterprises under the LEDs programme include Turf Brick Moulders (Pvt) Limited, Combined Technical Services (CTS) Zimbabwe, Static Strata, Stalack Enterprises, Glenrise Investments, Telstone Trading (Pvt) Limited, and The Brooke Chemist (Pvt) Limited.
Most of the local enterprises have expanded to provide goods and services beyond Zimplats and have positively impacted communities and the country through job creation, skills development, investment in local infrastructure and the overall establishment of thriving and healthy host communities. These achievements are in tandem with objectives of Vision 2030, where Government envisions high levels of human capital development, improved employment levels and infrastructure development, as well as improved living standards of ordinary citizens.
Speaking on the television programme, Economic Forum, in reference to the Zimplats LEDs programme, the Minister of Finance, Hon Professor Mthuli Ncube said, “The mining sector has backward and forward linkages with other sectors and this is happening through the LEDs programme that the mine is running. We expect this to grow and to see a whole industrial sector developing around that area where Zimplats is operating from.”
While the Zimplats LEDs programme contributes to the country's economic agenda, the programme is also a practical demonstration of mining contribution to supply chain development and efficiencies. The mining
sector's contribution to the economy has grown from US$2.7 billion in 2019 to US$5.3 billion in 2021.
Mining is the country's largest foreign currency earner, and it is programmes such as Zimplats' major expansion programme and its LED initiative that are expected to drive the mining industry's contribution to the economy. Mining also has an important role to play in enhancing the performance of local enterprises through training, capacity development, commercial, financial, and technical assistance. In the past year, 44 administrators from 22 local enterprises on the Zimplats LEDs programme
were trained in procurement systems, corporate governance, financial literacy, and business management systems development.
Employment creation
As at June 30, 2022, the 22 local enterprises in the LED programme provided decent work to 3038 people. Employment creation continued to rise as the LEDs programme is expanded, as shown by figure 1.
Revenue generation
The LEDs supplied Zimplats with various products and services, which included engineering, medical, haulage, drilling, labour contracts, underground support (shotcreting), legal advisory services, catering and facilities management solutions, protective clothing, bricks and silica.
For the 12 months ended June 30, 2022, LEDs spend amounted to US$54.9 million as shown in figure 2.
The enterprise activities by the LEDs resulted in significant contribution to socioeconomic development and import substitution.
Local procurement by LEDs and nonLEDs accounted for 58 percent of overall total procurement. The enterprise activities resulted in significant contribution to socio-economic development and import substitution.
Promoting gender equality and women's empowerment through the LEDs programme Through the LED programme, Zimplats has maintained its commitment to creating equal opportunities and promoting gender equality as espoused in SDG 5 by appointing 20 percent of the enterprises on the programme as female LEDs.
In FY2022, Zimplats capacitated and mainstreamed participation of four women-led enterprises, that is: Turf Brick Moulders (Pvt) Limited, Telstone Trading (Pvt) Limited, The Brooke Chemist (Pvt) Limited and Dostaro Investments (Pvt) Limited.
In the next edition, we feature some of the enterprises that are beneficiaries of the Zimplats LEDs programme with a focus on youth and women led enterprises.