Whether the largely taxpayer-funded Mkhuhlu Agri-hub in Mpumalanga’s Bushbuckridge district is achieving its reported goals, remains in question. There is already controversy over whether the multi-million-rand contract awarded to the private operator of this agri-hub was done so correctly.
By Lloyd Phillips, senior journalist at African Farming and Landbouweekblad
South Africa’s Agri-Parks concept was launched in 2015 by Gugile Nkwinti, the then minister of Rural Development and Land Reform. The goal was to have an agri-park and agri-hub in each of the country’s district municipalities, with each also hosting farmer production support units (FPSU).
These facilities are intended to support surrounding historically disadvantaged and under-resourced small-scale black farmers with the likes of mechanisation, production inputs and agricultural extension expertise. The facilities are also intended to receive harvests from these farmers, package or process these harvests to add value to them, and distribute them to markets. Ultimately, the agri-parks, agri-hubs and FPSU concept is aimed at bringing small-scale black farmers into formal production, value chains and markets so that they can farm sustainably for consistent income.
From what African Farming can ascertain, the success of these ambitious concepts remains highly variable across South Africa. Challenges for the less successful or even wholly stalled agri-parks and agri-hubs reportedly include delays in organising enough local small-scale farmers, budget overruns, vandalism, theft and corruption.
The Mkhuhlu Agri-hub in Mpumalanga’s Bushbuckridge district is reportedly one such facility whose operational success is in question.
Six Years Since Official Opening
According to online records by the Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs (MP DARDLEA) that funded and funds the Mkhuhlu Agri-hub, this facility officially became operational in April 2020. The department is also responsible for appointing a duly authorised contracted private operator of Mkhuhlu Agri-hub.
In October 2023, DARDLEA reportedly awarded the R128.4 million annual operator contract for Mkhuhlu Agri-hub to the Phambili Ngombono Trading (Pty) Ltd entity.
The specifications in the tender that MP DARDLEA issued for Mkhuhlu Agri-hub included managing day-to-day operations, aggregating harvests from local small-scale farmers, and finding markets for and wholesale trading of these harvests.
African Farming’s attempts to obtain clarity from the MP DARDLEA regarding the performance of the Mkhuhlu Agri-hub, have been unsuccessful.
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Operating Without Legal Registration?
Tersia Marshall, a member of the Mpumalanga Provincial Legislature and the Democratic Alliance’s spokesperson for Agriculture, Rural Development, Land and Environmental affairs in that province, has raised some significant concerns. She has addressed these in a letter to Mandla Ndlovu, premier of Mpumalanga.
Marshall alleges that MP DARDLEA “unconstitutionally awarded” the multimillion-rand contract to Phambili Ngombono Trading to operate the Mkhuhlu Agri-hub for a period of five years.
“This followed struggles faced by previous operators, which rendered the facility unable to operate to its full potential since 2020. Phambili Ngombono Trading’s mandate was also to supply produce from smallholder farmers and agro-processors to seven government boarding schools and 28 hospitals.
“I have received a formal complaint and supporting confirmation from the Agricultural Produce Agents’ Council (APAC) that Phambili Ngombono Trading is not registered as a market agent and does not have a valid Fidelity Fund Certificate (FFC), [thereby] rendering its operations unlawful.”
African Farming is in possession of a copy of a letter from Francois Knowles, registrar of APAC (Agricultural Produce Agents Council), dated 22 March 2026 that confirms to Marshall that Phambili Ngombono Trading “is currently in the process of registering with APAC. At present, the company does not hold a Fidelity Fund Certificate as contemplated in Section 16(1)(a) and (b) of the Agricultural Produce Agents Act (Act 12 of 1992).”
A potential market agent must first be vetted, approved and registered by APAC. To achieve a mandatory FFC, a registered market agent must satisfy specific statutory and financial requirements set by APAC. These include furnishing sufficient security, such as a bank guarantee or insurance policy, to APAC and that acts as a financial guarantee to meet claims from farmers if the agent defaults or commits fraud. Agents must also have a dedicated trust account to handle farmers’ money, agents must undergo independent audits and pass an APAC training course, and they must pay various fees.
Without this FFC certificate, the operator is legally prohibited from handling farmers’ produce or money in an agency capacity.
Knowles writes further: “Phambili Ngombono Trading’s registration process is specifically aimed at establishing a fresh produce agency at the soon to be open Mpumalanga International Fresh Food Market.
“I do undertake to conduct a formal investigation into this matter to determine whether the company’s current activities constitute unlawful conduct in terms of the Act, with particular reference to the commencement date of operations as provided by you.”
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Concerns for Farmers and Food
Marshall expresses her concern that children at the boarding schools and patients in the hospitals may possibly not be obtaining sufficient food because of alleged impropriety with the MP DARDLEA’s awarding of the contract for Mkhuhlu Agri-hub to Phambili Ngombono Trading and because of the latter’s alleged lack of legally required authorisations and certifications.
Marshall has called on Ndlovu to “intervene to guarantee uninterrupted food supply to all boarding schools and hospitals, to appoint a lawful and compliant operator without delay, to institute a full forensic investigation into the appointment and operation of the agri-hub, and to hold all responsible officials accountable for this failure.”
David Mthombeni is chairperson of the African Farmers’ Association of South Africa (AFASA) in Mpumalanga.
“From what I have been told, things are not going well, they are not going as per the plans at Mkhuhlu Agri-hub. I’ve heard that farmers there are not impressed. Apparently, the service is not good.
“I want to know things like who is leading that Phambili company? Do they have the right capacity and skills? What is the contractual agreement with Phambili? At the same time, though, the department is also a problem. Is it giving the support and the payments that it is supposed to? Phambili is a service provider to government. Is it being paid on time?”
African Farming’s attempts to call the numbers found for Phambili Ngombono Trading were unsuccessful.
African Farming will report the MP DARDLEA’s responses to its media enquiry and the outcomes of APAC’s investigation if or when this information becomes available.
Also read: City of Tshwane to be ‘closely monitored’ over fresh produce market
