22 March 2024
Thanks to a commercial bank’s willingness to plan for better financing, the title deeds for a milestone land transaction worth R30 million were handed over this week in the Sandveld.
Shareholders and beneficiaries in Pele ea Pele Agri received their title deeds for the Langvlei (1 011 hectares) and Utopia (460ha) farms near Aurora in the Sandveld on Tuesday, March 19. They farm here with 70ha of onions, likely to be expanded to 150 ha. There are also plans to eventually establish permanent crops, possibly table grapes.
Some 51% of Pele ea Pele Agri is owned by Tsepong Agri, in which Simon Mabete holds a 50% share. His son, Romeo, owns 5% of the enterprise, and the Masakhane Workers Trust, with 14 beneficiaries – all of whom have worked at Knapdaar Agri in Piketberg for at least ten years – owns the balance. Knapdaar Agri, owned by the Van der Merwe family, owns the remaining 49% of Pele ea Pele Agri.
Gerrit van der Merwe, his wife, Sandra, and their son, Arno, wanted to do something to improve the lives of their loyal workers. They considered dividing their farm, Zuurfontein, and trying to start a crate rental business to support an empowerment project.
When the nearby farms Langvlei and Utopia came on the market, they began negotiations in earnest, with the assistance of Gerrit van Vuuren from SA Partners in Agri Land Solutions (SA PALS).
First for SA
“Commercial banks usually are willing to finance only 60% of the value of a transaction, but due to expansions at Knapdaar Agri, the commercial partner and mentor in this case couldn’t invest so many millions,” says Van Vuuren.
“After a long process, however, Nedbank agreed to finance R28,5 million. This is the first time in South Africa that a bank has financed so much.
“It’s a very unique transaction because Nedbank surpassed other banks and showed how innovative a bank can be in making plans, without leaving the commercial partner hanging.”
Natie Albertyn, business manager at Nedbank, hopes they can apply the experience of this transaction fruitfully in the future. “Pele ea Pele means ‘new beginning’ in Sotho.”
According to Cobus de Bruyn, head of value propositions for agricultural clients at Nedbank, the transaction is proof that land reform can be successful. “We look forward to more such opportunities, and we know they’re on the way.”
Two generations join hands
What further distinguishes the transaction is that two generations of farmers are involved. Gerrit and Arno and Simon and his son, Romeo, intend to tackle the road ahead together.
“I am excited about the future and working together with Romeo. It’s a dream my dad started that we are now continuing. In a world of negativity and division, I believe we can be an example of what is possible,” says Simon.
Romeo, a second-year student in plant and animal production at Elsenburg Agricultural College, believes Pele ea Pele will have a significant impact on food security and the country’s economy.
“There are many opportunities in agriculture, and it is my goal to get more young people involved in the industry.”
Dr Ivan Meyer, Western Cape agriculture MEC, has undertaken to speak about Pele ea Pele when he presents his budget in the provincial legislature next week.
“I intend not to remain silent about this project. Here is something useful, valuable and precious, and South Africa must learn from this successful land reform model.”
SA PALS is a private sector initiative addressing land reform challenges in a merit-based manner. It believes that through partnerships, inclusive agricultural development and economic and social harmony can be promoted.
