The Mpumalanga Provincial Government has published the Mpumalanga Nutrition Sourcing Bill, 2025 a piece of legislation that seeks to compel state entities to procure agricultural commodities from black farmers.
By Maile Matsimela
At the heart of the bill is Section 4, which mandates that all provincial organs of state must acquire agricultural commodities from the proposed Mpumalanga International Fresh Produce Market. This requirement extends to all entities appointed by these organs of state, effectively creating a captive market for black farmers, who will be the primary suppliers through this market system.
The legislation defines agricultural-based enterprises as black-owned undertakings or businesses where at least 51% of shareholding is held by black people.
The bill also establishes a sophisticated producer permit system that only allows historically disadvantaged persons (HDPs) and other eligible farmers who meet specific criteria to benefit from government procurement. No farmer can access the provincial support schemes or supply state entities without first obtaining a producer permit and entering into an agreement with the head of department.
These permits, valid for up to three years, require farmers to demonstrate proven access to adequate land for agricultural purposes and comply with the National Department of Agriculture’s Food Business Operator System. The system prioritises farmers with annual agricultural-related turnover not exceeding R10 million, effectively targeting small- to medium-scale producers.
Beyond procurement guarantees, the bill establishes a provincial-specific Agricultural Finance Scheme comprising both grants and loans to support farmer development. This scheme works alongside the existing Blended Finance Scheme established between the Department of Agriculture and the Land and Agricultural Development Bank of South Africa (Land Bank).
The legislation mandates the creation of agricultural hubs and parks throughout the province, designed to provide equipment hire, value-adding services including sorting, processing and packaging, as well as logistics and training services. These hubs will serve as satellite markets of the main International Fresh Produce Market.
Furthermore, the bill covers an extensive range of agricultural products through Schedule 1, including grains and grain byproducts (maize, wheat, sorghum, soybeans), horticultural products (fruits, vegetables, culinary herbs), meat and dairy products, and miscellaneous market products.
Also read: Land Bank Development Effectiveness Success Stories – Mpumalanga
Tech Transfer And Funding
The bill goes on to include provisions for technology transfer, capacity building and infrastructure development. It says the Department of Agriculture must establish partnerships with public and private training institutions to provide business development services, promote technological modernisation and develop certified entrepreneurship programmes.
The bill allows for funding from provincial budget allocations, donations, grants and bequests from the public. The responsible Member of the Executive Council has one year from the act’s commencement to formulate multisectoral policies and programmes for promoting agricultural-based enterprises.
Nompumelelo Evidence Hlophe, Member of the Executive Council for Agriculture, Rural Development, Land and Environmental Affairs, emphasised that the bill seeks to “address the historical injustices of the past by diversifying the agricultural sector and allowing meaningful participation in the agricultural value chain by farmers disadvantaged by unfair discrimination”.
The legislation explicitly states decisions regarding permit holders and agreements must consider “the need to address imbalances resulting from past discriminatory practices in the agricultural sector” and “the importance of focussing primarily on the empowerment and advancement of HDPs”.
The bill will be open for public comment for 30 days from its publication date. Stakeholders can submit written comments to the Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs at its Nelspruit offices or via email to ttanda@mpg.gov.za.
