Learn more about our Collaborative Regional Development (CRD) approach, and how it is creating long-term, positive economic impact in the regions in which we operate.
The role of business in society and stakeholder expectations have never been more prominent or relevant. Moreover, in the transition to a decarbonised world – which will be inescapably metals and mineral-intensive – we need to ensure we leave a lasting and positive post-mining environment for the host communities our operations are bound to.
At the heart of our efforts to create thriving communities that endure and prosper beyond our presence is Collaborative Regional Development (CRD), Anglo American’s on-the-ground approach to catalysing independent, scalable and sustainable economic development.
With the aim of addressing compelling social needs in the regions in which we operate, CRD leverages partnership opportunities for local development and economic empowerment, and forms an important part of our Sustainable Mining Plan and our engagement with local communities.
As part of this approach, we collaborate with governments, communities, other private sector companies, academia, financial development institutions and NGOs, working together to develop and co-fund diverse new businesses and social ventures; all focusing on the opportunities that offer the most promising development and sustainability benefits. This provides comprehensive and scalable benefits for us, and our stakeholders.
Jon Samuel, Anglo American’s Group Head of Responsible Business Partnerships, explained the benefits of CRD, saying: “What we have discovered is that the greatest success comes in finding platforms everyone feels they can own and share. Long-term programmatic interventions to build capacity – investing in the systems behind organisations and training the individuals who are running them, for example – are also key to our ability to creating meaningful and shared value.”
Fit for purpose: Don’t design what’s possible, design what’s needed
One of the most challenging aspects of development initiatives is figuring out the right approach.
Plans that work in one region or country may not be appropriate elsewhere. We need to make sure we target the root causes of social issues, undertaking interventions that can be supported by local infrastructure, or that can work within economic capabilities and limitations.
By establishing cross-sector partnerships with organisations from different sectors to work together on projects of mutual interest, our CRD approach allows us to share risks, and combine resources and competencies to create maximum value.
Before any development project is designed, we conduct a rigorous geo spatial analysis – a critical insights tool to identify social and economic development opportunities with the greatest potential – to inform the short-, medium- and long-term socio-economic development (SED) strategy.
Once opportunities have been identified, we test them out; exploring market prospects and seeking local stakeholder views to co-create and determine their viability, and to ensure we design an approach that really fits local needs and context.
Sa ǁa ǃaĩsi 'uĩsi (We go to a better life)
Establishing a regional organisation that acts as a ‘partnership engine’ in collaboration with government and other stakeholders allows us to manage, co-fund and leverage funds to implement, at scale, jointly agreed projects, and to combine the strengths of different sectors to yield greater public benefit.
In 2019, together with a group of backbone partners – including the Council for Scientific and Industrial Research (CSIR), Exxaro, Zutari Construction, World Vision South Africa and the Mine Water Co-ordinating Body (MWCB) – we launched The Impact Catalyst programme in the Limpopo province of South Africa.
This has since been extended to the Northern Cape and, most recently, Mpumalanga provinces. The Impact Catalyst’s objective is to design and deliver large‑scale projects spanning several areas, including:
- Economic development: Supporting sustainable economic growth in host regions and countries.
- Health: Enabling people to increase control over, and to improve, their health. Beyond individual behaviour, this moves the focus towards a wide range of social and environmental interventions.
- Capable state: Supporting governments so that they can implement adequate development planning, and also more effectively deliver on local public services such as water, sanitation and power supply.
- Education: Supporting children and young adults as they transition from pre-school through to primary and secondary school, and into vocational training and higher education.
- Social empowerment: Acting individually and collectively to change social relationships, and the institutions and discourses that exclude poor people, and keep them in poverty.
- Green economy: Conserving natural resources and developing alternative sources of power, while reducing pollution and harm to the environment. Building a robust biodiversity economy that contributes substantially to the financial and economic climate in South Africa.
Unlike traditional partnerships or collaborative approaches, The Impact Catalyst ensures a long-term commitment between various organisations, all working towards a common goal.
Leveraging the expertise, skills, networks and resources of each partner, the vision is to: Achieve systemic, socio-economic change and impact aligned to the UN’s SDGs; institutionalise collaboration for collective impact in the delivery of socio-economic development; be a catalyst for the development and implementation of large-scale initiatives; and to be a sustainable and growing initiative that ensures continuity.
The Impact Catalyst draws on a variety of funding streams, including seed funding, project-specific funds, and grants, with a team that has been structured along the value chain: from strategic planning and ideation, to operations, and communications and marketing. Where needed, experts and implementation partners are brought in to support delivery.
Creating opportunities with impact
There are several initiatives in progress, one of which is the Rustenburg Fresh Produce Market. This brings together cross-sector collaboration, including Anglo American Platinum, the main project funder; Freshlinq, the commercialisation vehicle which manages and operates private fresh produce markets in Limpopo, Gauteng and Mpumalanga; and the Rustenburg Local Municipality.
The Municipality saw that a market could yield agricultural and economic development opportunities. The Fresh Produce Market will provide emerging vendors and producers with opportunities to market and sell their products at competitive prices. As well as providing vendors with easy access to fresh quality produce at affordable costs, this will open the value chain, bringing cost benefits to all levels of producers and improving the quality of the produce for the final consumer.
The implementation of this initiative started with an assessment of the current barriers to entry experienced by producers and buyers. Today, the project is in the construction phase, with an operating model in place. The market is expected to open on 1 June 2023 and is anticipated to deliver close to 1000 long-term jobs in the Rustenburg area.
Ultimately, the tangible effect of our CRD efforts will be thriving, empowered and self-sufficient communities, where the positive effects of our work – long-term, sustainable development – remain far beyond the life of our mines, and make a real and lasting difference within and beyond our host communities.
Incorporating the lessons learned in South Africa, Anglo American is working to replicate The Impact Catalyst model with local and international partners in Latin America. To learn more about Anglo American’s CRD approach, click here.