IFC and Anglo American partner to improve education and livelihoods in South Africa
IFC and global mining company Anglo American signed a sustainability-linked loan agreement which is to be used to support community development in rural communities close to Anglo American's mining operations across South Africa.
The financing will help improve the quality of education for more than 73,000 students and promote job creation. The $100 million sustainability-linked loan is IFC's first in the mining sector and is understood to be the first in the mining sector globally that focuses exclusively on social development indicators.
IFC and Anglo American have worked closely to ensure that a robust set of metrics and targets are documented. In this case, Anglo American has set itself targets under its Sustainable Mining Plan to support schools in its host communities to perform within the top 30 percent of state schools nationally and to create or support three offsite jobs for every on-site job at its sites by 2025.
To achieve its education target, Anglo American will aim to strengthen the public education system by training educators, practitioners, and school management teams, and upgrade basic school infrastructure and equipment, including providing WiFi and computers at over 100 primary and secondary public schools in South Africa, supporting over 73,000 students in early childhood development centres, primary schools and secondary schools.
Anglo American will aim to achieve its livelihood target by providing mentorship, capacity building, skills development, and access to finance to small businesses in the mining value chain and in other sectors, with a focus on women and young people.
"Our Sustainable Mining Plan has a set of ambitious global goals relating to delivering a healthy environment, creating thriving communities, and being recognized as a trusted corporate leader. We designed our goals to challenge us to lead and innovate in how we can best deliver meaningful and enduring value to society, and particularly to those nearest to where we operate. We are delighted to now link some of our education and job creation targets to this loan as an additional demonstration of our commitment to deliver real and tangible benefits for our host communities," said Stephen Pearce, Finance Director of Anglo American.
"Sustainability-linked financing is a powerful tool for mobilizing capital and to incentivize companies that seek to contribute to a more sustainable future. IFC's partnership with Anglo American will support quality education for early learners, strengthen human capital development, and boost small businesses in South Africa," said Kevin Njiraini, IFC's Director for Southern Africa and Nigeria.
Anglo American has committed to contributing additional funds to agreed social causes if it falls short of fully achieving its education and livelihood targets under the terms of this new loan.
This loan is part of a broader IFC engagement with Anglo American on local social development, including in Peru where IFC, Anglo American, and other partners are supporting regional development initiatives.