What is Enterprise and Supplier Development?


To create an avenue for previously disadvantaged people, the Government introduced BBBEE Act and Mining Charter to strategically bring participation of those people within


Enterprise and Supplier Development (ESD) as defined in the amended Broad-Based Black Economic Empowerment (B-BBEE) Act (Act No 46 of 2013) refers to a set of affirmative action and local content development measures aimed at promoting economic transformation


Arising from the act; there are Broad Based Black Economic Empowerment Codes of Good Practice (“DTI Codes”) that give guidance to measured entities and how to give effect to the act


Aligning to the Mining Charter, owned by the DMR, there are also Broad Based Black Socio Empowerment framework, that drives procurement of goods, services and projects from Black entities, and development of Black Enterprises


What is Exxaro’s strategic approach towards Enterprise and Supplier Development?


Legislative compliance

All Exxaro’s business practices are aligned with the regulatory framework that governs mining. The ESD programme therefore functions inside the parameters of the Mining Charter. Exxaro complies fully with all DTI Codes of Good Practice.


A self-sustaining programme

Exxaro assures financial sustainability of the enterprise and supplier development programme by offering blended financing options that may include either interest loans, no-interest loans, grants and equity options or a combination of all three.


Supplier diversity

Underpinned by transformation targets that prioritise black, female and youth-owned enterprises, Exxaro is committed to bringing new suppliers into its value chain that meet the highest level of preferential procurement scores. It also invests in a diversity of suppliers so as to de-risk concentration and an uncompetitive supplier base.



Exxaro chooses to invest in emerging enterprises with high growth potential that can rapidly expand, to create broader societal economic returns and employability. It also actively seeks out businesses outside of the mining value chain, in sectors such as agri-services or renewable energy, with the understanding that mineral resources are finite and succession planning is key to economic sustainability.


Social impact

By responsibly investing in commodities that can be safely mined while economically empowering people, the company’s success relies on strong collaboration and relationships with its host communities. By focusing on social cohesion and sustainable community development informed through stakeholder consultation, Exxaro aims to have lasting social impact that not only creates employment but improves the quality of lives for its suppliers, employees and communities.