A major priority for IFC in Africa is to provide investment and advisory support to smaller businesses, the engine of economic growth, job creation and opportunities.
As part of its commitment to the small business sector, IFC has teamed with Lonmin, one of the world’s largest platinum miners, to bring skills and thousands of jobs to a region of South Africa that suffers from 40 percent unemployment.
Established by a group of 10 women, Little Rock Construction is one company benefiting from the IFC-Lonmin partnership. Each day Little Rock’s workers are busy digging to upgrade a septic system, knocking down walls to create a family room, or adding the final pieces of roofing to houses that will soon be home for hundreds of Lonmin miners.
Little Rock’s mission is to turn crowded, single sex hostels – cited by the mining industry as a factor that contributes to the spread of HIV/AIDS -- into comfortable homes for miners and their families.
"By encouraging workers to live together with their spouses and families, this project will allow miners to both work and live in dignity," said Little Rock Chief Executive Thelma Botolo.
Prior to working with Lonmin, Little Rock’s experience was limited to small construction projects. Today, Little Rock is completing its first Lonmin contract, and has been awarded two more contracts for ongoing hostel conversions.
At a ceremony marking Little Rock's achievements, Lonmin Vice President Jeffrey Ngobeni said: “We are very proud of you that you have been able to deliver on your commitments.”
TRANSFORMING THE COMMUNITY
Lonmin and IFC, which promotes private sector development to provide opportunity for people to escape poverty and improve their lives, are working to transform the local community where Lonmin operates. The goal is to provide up to $60 million worth of contract opportunities for businesses. During its first eight months, the Lonmin-IFC local supplier development program has already issued $25 million worth of contracts to 14 suppliers.
"IFC has a tremendous track record," said Lonmin’s CEO Brad Mills. "IFC has excellent programs and expertise in capacity building inside communities and in developing local supplier solutions. They bring a technical dimension to community development that we felt would be very valuable to have, supplementing our skills."
The Lonmin-IFC Supplier Development Program is part of a wider financial and advisory services partnership between Lonmin and IFC. IFC has made a $100 million loan facility available to Lonmin and has the right to take up $50 million in equity in the company ($35million has been subscribed to date).
The advisory services partnership covers a number of areas, including local supplier development; HIV/AIDS risk management, women in mining, and community development.
The long-term goal of the partnership is to transform the local community by creating sustainable economic growth and bring skills and jobs. IFC is playing a key role in this partnership by bringing worldwide best practice and technical expertise.
For more information contact:
Daniel Musiitwa
Communications Officer
Johannesburg, South Africa
Tel: +27 11 731 3175
Email: dmusiitwa@ifc.org
