The UK government and diversified miner Anglo American have announced the establishment of a £2-million Impact Finance Facility, delivered through the Impact Finance Network (IFN).

This financing mechanism seeks to expand access to capital for South African small and medium-sized enterprises (SMEs).

This new partnership builds on UK Prime Minister Sir Keir Starmer’s visit to Johannesburg in November 2025, where the UK-Anglo American programme was first announced.

This was a partnership backed by over R100-million in UK funding to support South African SMEs and unlock up to R500-million in private investment.

This new facility will use the UK’s catalytic capital to mobilise at least three times additional investment from other funders and recycle funding so repayments can be reinvested. It endeavours to multiply long-term impact and showcase the UK’s shift from donor to investor.

The UK-SA Growth Partnership provides the broader framework for this initiative, supporting economic diversification, regional development and South Africa’s Just Energy Transition.

UK funding to help businesses grow and attract new investment is expected to support the creation of 5 000 new jobs.

This forms part of the UK government’s promotion of a series of new initiatives advancing UK-Africa collaboration on critical minerals, sustainable economic development, and SME growth during Investing in African Mining Indaba 2026, taking place this week in Cape Town, South Africa.

Opening a discussion focused on regional collaboration in the battery value chain, British High Commissioner to South Africa Antony Phillipson welcomed South Africa’s leadership at this pivotal moment to unlock Africa’s potential, recognising that shared challenges and opportunities in the sector demanded close international cooperation.

He described the UK’s approach as “pragmatic and partnership driven”, designed to crowd in private investment, and committed to ensuring minerals were produced and traded responsibly, transparently and sustainably.

“The UK’s Critical Minerals Strategy, launched by the Prime Minister during the Johannesburg G20 Summit, sets out a clear vision for resilient, diversified supply chains – underpinned by long-erm collaboration with global partners. This work forms a central pillar of the UK’s wider Africa Approach, which prioritises partnerships based on equality, mutual benefit, and responsiveness to African governments’ stated priorities,” Phillipson averred.

This support includes deploying UK expertise in mining, engineering, professional services, finance, environmental, social and governance standards, traceability and community-centred development.

Given the sector’s scale and complexity, the UK emphasised the need for regional collaboration and coalitions of like-minded partners to unlock value, combine comparative advantage and build shared capabilities across borders.