Amabutu Logistics (Pty) Ltd (referred to hereinafter as “Amabutu”) was founded in 2014 as a partnership between the leadership of the Somopho, Dube, Mkhwanazi, Ogagwini, Nzuza and Macambini communities and a consortium of local businessmen to service the Tronox Minerals (Pty) Ltd contract. The primary objective of this venture was to empower and develop previously disadvantaged individuals and to uplift and develop the local communities.

To achieve these objectives, the company formed an effective business network by engaging knowledgeable and experienced contractors to assist the company in key managerial, financial and technical areas. This ensured that the company had the capacity and the expertise to manage and successfully execute major projects with the invaluable transfer of skills also took place concurrently. The transfer of skills was achieved through a formal mentorship program that commenced in 2015 and was concluded in December 2020.

Meaningful Benefits

The benefits of establishing such a business network, which in effect created a partnership between established businesses and community-based initiatives, were as follows:

▸ Allowed meaningful participation in the socio-economic transformation of South Africa;

▸ Provided for the continual development of the local communities through the transfer of the necessary business skills for them to successfully manage future business endeavors;

▸ Introducing reliable service providers and establishing an effective business network as a direct result of the existing associations and business relationships of the minority shareholders;

▸ Providing employment for members of the host communities in accordance with the employment strategies of the local tribal councils; and

▸ Strengthened relationships between local communities and businesses.