Stella Ndabeni Drives SME Support in South Africa’s Mining Sector Amidst Charter Shift

Johannesburg, South Africa – A recalibration is underway in South Africa’s mining sector, focusing on bolstering small and medium-sized enterprises (SMEs) and addressing historical gender imbalances. Minister of Small Business Development Stella Ndabeni is spearheading these efforts, aligning them with a potential shift away from the Mining Charter towards broader Black Economic Empowerment (B-BBEE) Act compliance.

New Collaborations and Funding Initiatives

Speaking at the National Entrepreneurship Strategy engagement session during the Mining Indaba 2026, Minister Ndabeni emphasized the central role of small business development within her department’s mandate. She highlighted new collaborations between the Department of Small Business Development, the Department of Minerals and Petroleum Resources (DMPR), and the Department of Trade, Industry and Competition to create a more supportive ecosystem for SMEs in the resource sector. Daily Maverick reports that Ndabeni stressed the importance of understanding the existing ecosystem to ensure effective coordination.

A key component of this strategy involves addressing capital-intensive barriers to entry in the mining industry. The DMPR has allocated R500-million to the Industrial Development Corporation (IDC) specifically to support junior miners. Ndabeni confirmed ongoing collaboration across the Government of National Unity to bridge funding gaps often overlooked by commercial banks.

Women’s Empowerment Fund

Ndabeni too announced a dedicated R300-million women’s empowerment fund aimed at improving gender representation within the mining sector. This initiative seeks to leverage additional funding from mining corporations like Exxaro and Harmony Gold. The fund is specifically targeted towards women-owned businesses.

Addressing Systemic Issues and Preventing Unrest

The push for SME support and empowerment is not solely economic. Ndabeni explicitly linked economic exclusion to the civil unrest experienced in July 2021, positioning these interventions as vital for maintaining constitutional order and preventing unregulated activity. She views these efforts as essential to prevent a recurrence of such events.

Shift from Mining Charter to B-BBEE Act

The initiatives are unfolding against a backdrop of potential legislative changes. The mining industry is facing a possible overhaul that could replace the Mining Charter with alignment under the B-BBEE Act. Lili Nupen, founder and mining and environmental director at NSDV Law, explained that this shift would mean the industry is “totally doing away with [the charter]” and instead legislating empowerment through the B-BBEE Act. This change is driven by concerns over the Mining Charter’s broader definition of transformation versus the more aggressive 100% ownership focus of the proposed B-BBEE alignment.

Under the current Mining Charter, mines are required to source 70% of goods from South African manufacturers, broken down as follows:

• 44% from B-BBEE compliant companies
• 21% from companies owned and controlled by historically disadvantaged persons (HDPs) (at least 51% ownership)
• 5% from women or youth-owned and controlled companies

A controversial aspect of the proposed changes is the potential for a Transformation Fund, allowing companies to contribute 3% of their net profit after tax to a centralized state fund instead of running their own enterprise and supplier development programs. Critics argue this could undermine economic activity in “near-mine” communities.

Anglo American’s Proactive Approach

Anglo American’s Kumba Iron Ore is taking a proactive approach to these changes. The company has launched an impact fund in the Northern Cape, recognizing the limited life-of-mine horizon for many operations (estimated between 2040 and 2050). Dr. Pranill Ramchander, executive head of corporate affairs for Kumba Iron Ore, emphasized the need to invest in businesses outside the mining value chain to prevent the creation of ghost towns when mines close.

The Impact Finance Facility, launched with R51.2-million from Anglo, aims to provide flexible, low-cost loans to early and growth-stage businesses, attracting additional investment. The fund has already identified 33 investment-ready deals and will provide mentorship and technical expertise.

Challenges and Outlook

Ndabeni acknowledged the bureaucratic hurdles and the need for a structured departmental framework to effectively implement these initiatives. She also highlighted the lack of an integrated approach to small business support as a key challenge. Whether these empowerment efforts will succeed remains to be seen, but the government and industry are signaling a commitment to a more inclusive and sustainable mining sector.

Minister Ndabeni delivered a keynote address at the SAYEC 4th Annual Mining Indaba Business Dialogue. [WATCH] and at the National Entrepreneurship Strategy Validation Session. [Highlights]