Anglo American and Kumba Iron Ore have launched the Impact Finance Facility (IFF), a new funding platform aimed at improving access to growth capital for small and medium-sized enterprises (SMEs) in underserved South African regions.
The facility, unveiled during Mining Indaba 2026, is structured to provide flexible, low-cost repayable loans to early- and growth-stage businesses that struggle to access traditional financing. The initiative follows a November 2025 partnership with the UK’s Foreign, Commonwealth and Development Office (FCDO), which contributes both capital and technical assistance.
Blended Finance for Growth
Kumba Iron Ore has pledged R51.2m over five years, primarily for businesses in the Northern Cape. Complementing this, the FCDO has committed £4.5m (≈R100m) over four years, aimed at scaling the facility and supporting investment-readiness programs. Anglo American says the new facility aims to attract at least three times additional private investment for every rand deployed.
Emma Parker, Anglo American’s sustainable and impact finance manager, said market testing identified 33 potential investment-ready deals valued at R576m. A prior pilot demonstrated the model’s leverage effect, converting R5.35m in catalytic funding into R52.6m in third-party capital.
Target Sectors and Regional Impact
The IFF will focus on green and circular economy solutions, digital innovation, agricultural value chains, and sustainable livelihoods, particularly in mining-linked regions. Kumba CEO Mpumi Zikalala emphasized the program’s role in economic diversification, while British High Commissioner Antony Phillipson highlighted its potential for job creation and regional resilience.
Reducing the Funding Gap
The facility targets commercially viable SMEs often overlooked due to high perceived risk and capital costs. By pairing risk-tolerant capital with technical support, the IFF seeks to unlock follow-on investment, demonstrating a structured approach to integrating impact investment into South Africa’s development economy.
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