Zimplats spends US$407m through local enterprise development

PLATINUM group metals (PGM) producer, Zimplats, says through its structured local enterprise development (LED) programme, it has invested US$407 million in the procurement of goods and services since the programme’s inception in 2013.

Zimplats, in its 2023 integrated annual report said it is committed to creating a better future through developing economically self-sustaining and inclusive mine communities.

The LED programme was launched to capacitate and grow local indigenous companies and the objective is to align the LEDs to the standards of Zimplats’ way of doing business and core values.

This is positively contributing to a resilient supply chain for Zimplats and the economic and social development of the communities in which the company operates, it said. “The LEDs supplied Zimplats with various products and services, which included engineering, medical, haulage, drilling, labour broking, underground support (shotcreting), legal advisory services, catering and facilities management solutions, protective clothing, bricks, and silica.

“As at 30 June 2023, LEDs spent amounted to US$69 million, a eleven percent increase compared to last year’s spend of US$62 million. A total of US$407 million has therefore been invested in the procurement of goods and services from the LEDs since the programme’s inception in 2013.”

It noted that the activities by the LEDs resulted in significant contribution to socio-economic development and import substitution initiatives.

Procurement spent on LEDs in 2023 accounted for nine percent of Zimplats’ overall procurement.

The LEDs programme is in line with Sustainable Development Goal 8.3, which promotes policies that support job creation and the growth of enterprises.

The programme comprises 22 SMEs, of which 32 percent are women and youth enterprises. The firm says these companies are all guaranteed a certain level of business with Zimplats.

“In FY2023, a number of LEDs were able to provide goods and services beyond Zimplats. Further, the LEDs positively impacted communities through job creation, skills development, investment in local infrastructure, and the overall establishment of thriving and healthy host communities.

“The LEDs programme also contributed to supply chain efficiencies associated with proximity for services and materials such as labour, river sand and quarry stones for construction purposes, thus reducing costs and lead times. Services that were offered to LEDs to enhance their performance include training, capacity development, market linkages, financial and technical assistance. “The LEDs programme is expanding and contributing positively to the national economy, the community, and to a resilient supply chain for Zimplats,” it said.-chronicle