[South Africa] Exxaro partners with SAICA ED to enhance financial management systems
Exxaro’s Enterprise and Supplier Development (ESD) initiative announced a collaboration with SAICA Enterprise Development (SAICA ED), to implement Financial Excellence Programme to allow the mining company’s suppliers enhance financial management systems for more robust and sustainable enterprises.
SAICA Enterprise Development (SAICA ED) is part of the Nation Building division of The South African Institute of Charted Accountants (SAICA) and runs ESD programmes, particularly focusing on black-owned initiatives, with the goal of growing the SMME Enterprenial ecosystem for greater sustainability.
“To continue empowering the communities in which we operate, Exxaro has embarked on a new venture, in partnership with SAICA ED, to help spearhead growth in the economy and increase job creation. Through this we hope to see improved financial skills capacity, internal controls, and compliance to regulatory requirements in our suppliers’ businesses,” said Mzila Mthenjane, Exxaro Executive Head of Stakeholder Affairs.
To address financial management challenges and embed financial management on a sustainable basis, Exxaro ESD has approached SAICA ED to assist with and implement; Finance coaching for the SMMEs, Accounting and back office support to SMMEs, Finance bootcamps, Monitoring and evaluation of the impact of the Financial Excellence Programme on SMME performance.
The programme will run for 12 months and will support Exxaro’s objectives by developing financially astute SMMEs and empowering suppliers through proper financial management from the finance coaching, receiving credible, quality management reporting through the accounting and back office support, developing SMMEs in the areas supported by Exxaro’s mining operations and playing an active role in helping unemployed youths.
“With a continuous passion to see growth in South Africa's entrepreneurial ecosystem, SAICA ED is excited to work with Exxaro and its ESD beneficiaries to set a course for job creation and productivity growth,” added Annie McWalter, SAICA ED Chief Executive Officer. “Our first step is to onboard 29 beneficiaries across the clusters: at Grootegeluk, Belfast Mine Mafube, Leeuwpan, ECC Mine, Matla, and at the conneXXion. Then we get to work pairing them with small and medium accounting practices (SMPs). A separate component in our programme focuses on creating youth employment. Thus we will be allocating accounting graduates to our SMP’s, whose salaries will be subsidised, in order for the SMP to obtain an additional resource and for the graduates to gain some much needed work experience which they will need to enhance their employability after our programme,” said Jameel Khan, SAICA ED Head of projects.
All entrepreneurs will be tracked in terms of their business growth and their success against the initial financial deep dive. This will be achieved by establishing solid financial recordkeeping practices, as well as coaching the entrepreneur in financial management systems and effective cash flow processes which enhance the SMMEs’ ability to make effective and relevant business decisions. To ensure the programme continues to run in an efficient manner, Exxaro is investing more than R3,5 million in the growth of beneficiaries.
“It’s great knowing that we stand alongside a company that believes in not only sustainable economic development, but also understands the role local SMMEs play in making this goal a reality. It’s with a grateful heart that we stand alongside Exxaro and SAICA ED, and work towards the development of our businesses and ultimately creating stronger, more prosperous communities,” said Kone Shavhani of Boitlhamo Construction, ESD beneficiary at the Grootegeluk Complex in Limpopo.