Notes to the consolidated and separate annual financial statements | Note 40

On 19 December 2022, the Company established an enterprise and supplier development funding programme to support small and medium enterprises (SMEs) through responsible investment and ensuring Broad-Based Black Economic Empowerment code compliance. The Company has provided the fund with an interest-free loan, which will be used to support the SMEs. During the current year, the Company provided an additional R3.5 million interest-free loan in a different fund.

The loan is accounted for at amortised cost. The Company expects repayment of the capital amount on winding up of the fund at the end of a two-year period from the reporting date. At the reporting date, there was no indication of a deterioration of the credit risk on the loan since initial recognition. The loan is considered to have a low credit risk of default, and the beneficiaries of the fund have a strong capacity to meet the contractual cash flow obligations in the near term. The expected credit loss over the next 12 months is immaterial.