AGRI SA has launched of two pioneering projects in Limpopo and Mpumalanga to boost the sector’s transformation efforts. The projects are the culmination of a joint initiative with the Motsepe Foundation to reimagine development funding and foster greater collaboration to accelerate the inclusivity of the agricultural sector.
The Motsepe Foundation and Agri SA, through its subsidiary Agri Enterprises, have identified access to capital as a key constraint facing projects with real potential to support and advance emerging farmers.
Due to legal and tax requirements and because of the commercial nature of these projects, the Motsepe Foundation facilitated approximately R70 million of funding for the first two projects through a company established by the Motsepe family.
The first of the projects supported in the current phase of the initiative will be the joint ventures established following the successful Greater Tenbosch land claim in Mpumalanga. Three ventures have been established to cultivate cane on this land which has to date suffered from a lack of funding. A crucial partner for this project has been consumer goods giant RCL Foods, which is currently the sole funder of the joint ventures.
The second project, Majeje Citrus, will be in partnership with the Majeje Traditional Authority which occupies land still owned by the state, despite the recognition of the community and its chieftaincy. In partnership with Komati Fruit and ABSA, the community has set up Majeje Citrus. With the support of Agri Enterprises and the Motsepe Foundation, the community will now be able to develop its land and participate in the cultivation of South Africa’s most thriving agricultural commodity.
The first two projects of this initiative will create and maintain 1 541 jobs (seasonal and permanent) – and will impact on 5 705 livelihoods.
Agri SA is confident that the partnership with the Motsepe Foundation will provide a new and vital model for the support of forward-looking, private sector-led initiatives aimed at promoting inclusivity in the agricultural sector. It is intended that this innovative approach to development funding will be rolled out to more projects in the current phase.
For further information contact: Omri van Zyl, CEO, Agri SA Enterprises, Tel: 082 417 5724 or Christo van der Rheede, Executive Director, Agri SA, Tel: 083 380 3492.
