2 Aluminium Beneficiation Initiative [ABI] A Hulamin – BHP BILLITON Economic Development InitiativeB6 Maritzburg Arch 39/45 Chief Albert Luthuli Street, Pietermaritzburg 3201
3 Content1. Vision 2. ABI Mission 3. Hulamin and BHP Billiton Entrepreneurial Support 4.Aluminium Industry Overview 5. Role of ABI 6. Requirements - Prospective Entrepreneurs 7. Impact of ABI to Economy 8. Sample of Aluminium Downstream Products 9. SEFA 10. Next Step
4 ABI Funders Hulamin Operations BHP Billiton Head Office and Plant : Pietermaritzburg/MidrandAnnual Turnover of R7-BillionEmployment: 2,000Head Office: JHB [Regional Office]Aluminium Plants: Richard’s Bay/MozambiqueAnnual Turnover: R12-billionEmployment: 1,500
5 VisionTo identify and support 100 entrepreneurs in the aluminium fabrication sector and guide them into sustainable businesses within 3 years which will result in these businesses consuming at least 100 tons of aluminium each.
6 ABI MissionTo identify entrepreneurs [high potential] with innovative ideas and business acumen to establish, grow and sustain successful enterprises. To provide training and support for these entrepreneurs to overcome constraints to achieving their goals. To support a pipeline of entrepreneurs, from selection to goal attainment. To capitalize on the support available from agencies and stakeholders with related objectives To raise Hulamin - BHP Billiton’s profile as a contributor to industrialization, job and wealth creation.
7 Hulamin – Entrepreneurial Support Since 1996,Hulamin undertook to develop and grow African Enterprises. These have grown from R1 million in 1996 to R75 Million in 2014 resulting in over 350 permanent jobs [20% of Hulamin compliment of 2000].According to a study conducted by the University of Michigan [USA] and the National Business Incubation Association [NBIA[ entitled Business Incubation 87% of business incubation graduates stay in business.
8 BHP Billiton – Entrepreneurial Support In 2013, BHP BILLITON established a R50 Million Enterprise and Supplier Development Centre in RichardsbayOver 70 entrepreneurs have gone through a 2-year training programmeOne of the entrepreneurs that went through this programme now employs > 800 people
10 Economic LandscapeDuring the last 20 years we have witnessed major economic trends in South Africa:The economic size of the SA economy has doubled in GDP terms from R1 trillion to R2 trillion.The rapid growth of the black middle class [approaching 4 million households from 350,000 households in 1994];Very slow growth in the industrialization sector which has led to job losses in agriculture, mining and manufacturing. The shrinkage of the productive sector has been, ironically, accompanied by the growth of service sector especially finance, real estate, government, transport, communication and distribution.Low Entrepreneurship in SA. Only 2% of start-ups survive after 3.5 years in business.Key challenges for Entreprenuers: Market Access, Business support and Funding
11 Role of Aluminium Beneficiation Initiative Identify Potential CandidatesSelect/Filter CandidatesTrain based on accredited modules to address skills gapTransfer relevant skills to candidatesAssist candidates to secure resourcesDevelop sustainable funding model for candidatesPromote and branding rightsSecure necessary Technology and LicencesDevelop and protect intellectual propertyForm strategic partnership with key role players within the relevant supply chainsLeverage the relationship from Board to strategic partners to unlock potential business opportunities
12 Requirements – Prospective Entrepreneur Entrepreneurial, innovative, self-starterBusiness acumen and intelligent/smartStrong selling and people skillsDesire to learnStrong personality, independent, positive attitude
13 Impact of ABI to Economy Growth in the size of the Aluminium industry resulting in high level skills development and job creation.Import Replacement.Hulamin-BHP BILLITON - collaboration will unlock other business opportunities within the upstream-midstream-downstream supply chain that would have a trickle-down effect to the economy.Aluminum Fabrication Incubator
18 Small Enterprise Financial Agency [SEFA] SEFA committed R80 Million towards an Aluminium FundAn additional R20 Million - Hulamin/BHP Billiton Contractors Fund [business growth/expansion, etc.]Disbursement of Funds subject to skills transfer and supportOpen to All South Africans
19 Business Support and Guidance – within the Competition Act Framework SummarySupport ModelFunding FacilitationTechnical SupportRaw MaterialBusiness Support and Guidance – within the Competition Act Framework
20 Next Step Register your ideas/interest/enquiry on the website www Next Step Register your ideas/interest/enquiry on the website
21 “WE MUST BECOME BIGGER THAN WE HAVE BEEN, MORE COURAGEOUS,GREATER IN SPIRITAND LARGER IN OUTLOOK”.Thank you