Mining Indaba 2026 Sees Launch Of Catalytic Impact Finance Facility

The Impact Finance Facility (IFF), launched on the sidelines of Mining Indaba 2026, is structured as a catalytic finance platform designed to provide flexible, low-cost repayable loans to early- and growth-stage businesses that struggle to access traditional funding.

The initiative follows a November 2025 partnership agreement between Anglo American and the UK’s Foreign, Commonwealth and Development Office (FCDO).

Blended capital structure

Kumba Iron Ore has committed R51.2m over five years (2026 to 2030), with funding earmarked primarily for businesses in the Northern Cape.

This sits alongside a £4.5m (approximately R100m) commitment from the FCDO over four years, announced in late 2025. The UK funding is intended to scale the facility and provide technical assistance to participating businesses.

The facility forms part of Anglo American’s broader Impact Finance Network (IFN), which focuses on preparing SMEs to become investment-ready and connecting them with social and impact investors.

According to Anglo American, an earlier pilot under the IFN model unlocked R52.6m in third-party capital from R5.35m in catalytic funding, demonstrating the intended leverage effect. The new facility aims to attract at least three times additional funding from other investors for every rand deployed.

Target sectors and regional focus

The IFF will focus on businesses operating in:

• Green and circular economy solutions
• Digital innovation
• Agricultural value chains
• Sustainable livelihoods

Kumba CEO Mpumi Zikalala said the company’s commitment reflects a focus on economic diversification in mining regions, particularly the Northern Cape.

British High Commissioner to South Africa Antony Phillipson said the partnership combines development finance with private-sector capital to support job creation and regional economic resilience.

Anglo American’s sustainable and impact finance manager Emma Parker said market testing ahead of launch had identified 33 potential investment-ready deals valued at R576m.

Addressing a funding gap

The facility targets a segment of the SME market described as commercially viable but underserved due to perceived risk and high capital costs. By offering structured, risk-tolerant capital alongside technical support, the partners aim to reduce barriers to follow-on investment.

As blended finance models gain traction in South Africa’s development and mining-linked economies, the IFF represents a structured attempt to crowd in private capital into regions traditionally dependent on extractive industries.