New Anglo American and Kumba Facility Targets SME Funding Gap in Underserved Regions

New Anglo American and Kumba Facility Targets SME Funding Gap in Underserved Regions. Anglo American and Kumba Iron Ore have launched a new funding vehicle designed to expand access to growth capital for small and medium sized enterprises operating in underserved regions of South Africa.

The Impact Finance Facility was introduced on the sidelines of Mining Indaba 2026 and is structured as a catalytic finance platform. It will provide flexible, low cost repayable loans to early stage and growth stage businesses that face challenges securing traditional funding.

The initiative follows a partnership agreement concluded in November 2025 between Anglo American and the United Kingdom’s Foreign, Commonwealth and Development Office. The collaboration brings together development finance and private sector capital to support enterprise growth and regional economic participation.

Kumba Iron Ore has committed R51.2 million over five years, covering the period from 2026 to 2030. The funding is primarily earmarked for businesses operating in the Northern Cape. This commitment is complemented by a £4.5 million contribution from the Foreign, Commonwealth and Development Office over four years. The UK funding is intended to support scaling of the facility and provide technical assistance to participating enterprises.

The Impact Finance Facility forms part of Anglo American’s broader Impact Finance Network, which focuses on preparing small businesses to become investment ready while linking them with social and impact investors. According to Anglo American, an earlier pilot under the same model unlocked R52.6 million in third party capital from R5.35 million in catalytic funding. The new facility aims to attract at least three times additional investment for every rand deployed.

The programme will prioritise enterprises involved in green and circular economy solutions, digital innovation, agricultural value chains and sustainable livelihood activities.

Kumba Iron Ore chief executive Mpumi Zikalala said the company’s commitment reflects a focus on economic diversification in mining regions, particularly the Northern Cape.

British High Commissioner to South Africa Antony Phillipson said the partnership combines development finance with private sector capital to support job creation and regional resilience.

Anglo American sustainable and impact finance manager Emma Parker said market testing identified thirty three potential investment ready deals valued at R576 million.