Cape Town – As the economic recovery continues to ramp up post Covid-19 pandemic, there is a huge push to drive the South African economy back to pre-pandemic productivity levels.
The mining sector overall showed a strong recovery in 2021 and into 2022 following the impact of the Covid-19 pandemic.
The Minerals Council South Africa said that in 2021 a stabilised mining sector saw record production values of R1.2 trillion, with a direct contribution to GDP of R481bn.
The impact of a strengthening sector saw over 450 000 jobs supported and a corporate income tax of R78 billion.
However, according to the Minerals Council, this is still some way short of the 2000-2006 peak and not yet at 2015 levels.
Astron Energy CEO Thabiet Booley said the importance of the mining sector to drive much-needed economic growth cannot be overstated.
Astron Energy forms a significant part of the economy and operates the second largest network of retail service sites in South Africa as well as the Astron Energy Refinery in Milnerton, Cape Town.
The company is strategically positioned to play a key supply role in all major sectors of the SA economy, including, the critical mining sector.
Further supporting mining and other sectors is the companys lubricants manufacturing plant in Durban, its 15 terminals, and 180 commercial and industrial sites.
The 2023 Mining Indaba took place recently under the theme Unlocking African Mining Investment: Stability, Security, and Supply and a key part of the event focused on supporting supply chain security.
Booley said the ability of the mining sector to support economic growth, aid job creation and increase prosperity throughout its extensive supply chain network meant that the industry continues to be critical to South Africas economic fortunes.
The 2023 Mining Indaba presented an important platform for Astron Energy to have constructive engagements with key industry players to allow the company to better support these players to navigate the challenges ahead.
We support the broader move to decarbonisation and also greater adherence to environmental, social and governance (ESG) goals to the benefit of people, communities, our environment, and ultimately a sustainable future, he said.
Astron Energy continues to see how we can support the mining sector through innovation in products and processes.
According to Booley, a key element for the company will be the impact of its recently launched Astron Energy Development Fund (AEDF).
The R220 million development fund is intended to empower small businesses in the Astron Energy value chain and its linked communities.
The launch of the AEDF is the next major step for us as a company that is committed to making a meaningful difference in the communities in which we operate, Booley said.
The AEDF was set up in line with commitments made to the Department of Trade Industry and Competition and seeks to create sustainable and meaningful change and prosperity for small businesses in the Astron Energy value chain, including the critical mining sector.
We understand that the micro, small and medium-sized enterprise (SMME) sector is crucial to economic growth, job creation and shared prosperity in South Africa, Booley said.
Where Astron Energy products, supplies, and services support and intersect with the mining sector value chain, we will look to see how we can leverage the AEDF to support the establishment or growth of existing or potential sustainable local SMMEs, particularly in under-resourced communities around our facilities.
The Astron Energy value chain includes, but is not limited to,
- construction and maintenance services;
- electricity and alternative energy sources;
- engineering and other professional services;
- environmental services;
- finance, legal, HR and IT;
- retail network support;
- health and safety, including protective gear; and
- warehouse logistics.
For us, success would mean supporting such businesses to help create empowerment, shared growth and prosperity, as well as supporting the building of critical and future skills, Booley said.
This is particularly so among youth where opportunities, business and skills development and leadership training are essential to help address the youth unemployment crisis facing our country.
The Astron Energy Development Fund has three flagship programmes:
Growing Emerging Businesses
Astron Energy will support new or existing small businesses in the fuel and lubricants value chain through the provision of preferential rate development loans and/or business development support
* Priority will be given to beneficiaries from disadvantaged groups, e.g., as a result of race, gender, disability, youth and rural location, but no race group will be excluded. Black-owned businesses in the refinery by-products (LPG & Bitumen) and retail sectors of the liquid fuel value chain are a focus area.
Small Business Support
Distress or bridging finance together with business development support* for key small business suppliers and retailers from disadvantaged groups.
*Business development support extends to training and mentoring in the areas of leadership, strategy, marketing, safety standards, as well as the provision of finance, tax, legal and other services to help establish a firm foundation for each business.
Growing our communities
This programme is focused on the communities in and around our Astron Energy facilities and those of our key customers.
The AEDF has partnered with two NGO organisations, ORT SA and gold Youth Development Agency, to develop life, digital and entrepreneurial skills targeted at high school students and unemployed youth to empower them towards a sustainable future through greater employability and gaining the skills to become a business owner.
A further aspect of this programme is to support micro business incubation through grants, the development of business skills for micro/small business owners and the formalisation of micro/small businesses so that they can compete for funding/investment.
According to Booley, the launch of the AEDF is over and above the R100 million in interest-free loans granted to small black-owned enterprises through the companys Enterprise & Supplier Development Fund which has been going since 2015 and remains a priority programme for the company.
In 2022, Astron Energy also launched its innovative SMME Portal that assists small businesses to access procurement and funding opportunities at Astron Energy.
The Astron Energy Development Fund is a key part of our efforts to help create a better, more prosperous and inclusive future for all our people and the communities in which we operate, Booley said.
The launch of the Astron Energy Development Fund comes during a hugely exciting period for the company which saw all parts of the business recently adopt a single name and corporate brand identity.
In late 2022, the company began the rebranding of its network of over 800 Caltex service stations in South Africa, to be followed by those in Botswana, as well as all other key company assets.
All of these key initiatives are part of our efforts to ensure we address the changing needs of our customers, showing that we understand and are able to get behind and support their growth ambitions.
These initiatives and investments are a testimony to our commitment to South Africa Booley concluded.
*To read more about the AEDF and eligibility requirements, or to apply for AEDF support, please visit the SMME Portal: Astron| SMME Portal
