By Carien Kruger
Black-owned enterprises in Gauteng’s agro-processing industry are set to benefit from a new R100 million blended finance initiative aimed at driving inclusive economic growth.
The Gauteng Department of Agriculture and Rural Development, in partnership with the National Empowerment Fund (NEF), has launched a dedicated fund to promote black participation in the sector.
The fund offers a financing structure comprising 70% debt and 30% grant funding. It targets black-owned agro-processing businesses operating within six key value chains: grain, horticulture, poultry, red meat, cannabis and aquaculture, according to a joint statement by the department and the NEF.
The initiative was announced at the Agro-Processing Convention and Expo in Midrand on 3 July.
Targeted Support to Overcome Barriers for Black Agro-Processors
The new partnership aims to overcome historical financing barriers by offering structured support, technical assistance and improved market access, says Mzi Dayimani, CEO of the NEF. In addition to funding, the initiative provides pre-investment support and assistance with securing outlet agreements, and helps entrepreneurs integrate into regional value chains.
So far, the fund has received 188 applications. Of these, 32 met all eligibility criteria, and a further 18 are currently under consideration.
Agro-processing accounts for 5,2% of Gauteng’s gross domestic product, and an estimated 35% of South Africa’s total food output flows through the province.
The province has identified agro-processing as one of its 10 high-growth sectors, says Vuyiswa Ramokgopa, MEC for Agriculture and Rural Development.
Dayimani emphasises the need for broader collaboration in the sector. “One institution alone cannot unlock the potential of this industry. Through blended finance, co-investment and better system alignment, we can support black agro-processors to grow into exporters and job creators.”
