The Kgodiso Development Fund was never created as just a financial institution, but rather as a developmental vehicle aimed at transforming lives, restoring dignity and creating long-term economic opportunities within the agricultural sector.
By Maphuti Mongatane, businesses development manager at African Farming
This was the message delivered by Diale Tilo, executive director of the Kgodiso Development Fund, at the fund’s Business Breakfast on 25 May. He reflected on the fund’s journey, impact and commitment to building a stronger and more inclusive agricultural economy in South Africa.
“This is not just about funding,” he emphasised. “Behind every number is a family, a livelihood, jobs, income around households and communities that are trying to grow.”
The breakfast reflected on the progress made since the launch of the fund in 2022 after PepsiCo’s acquisition of Pioneer Foods, which saw R400 million committed to supporting black farmers and small and medium-sized enterprises (SMEs) across the agricultural value chain.
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Accountability and Discipline are Key
Tilo highlighted that over the past four years, the fund has evolved from an ambitious idea into a meaningful development platform focused on inclusive growth, enterprise support and transformation within South Africa’s food system.
According to Tilo, meaningful transformation requires more than access to finance alone. He stressed the importance of accountability, discipline, technical support and sustainable business development.
“If we expect accountability and discipline from the businesses we support, then we ourselves must operate with excellence,” he said.
He explained that the fund has therefore invested significantly in portfolio management, developmental support and financial discipline to ensure supported businesses are equipped to survive and to grow sustainably and competitively.
Tilo further emphasised the importance of agro-processing, manufacturing, logistics and value addition as key drivers of future economic growth.
“The future is not only in producing raw commodities, but in processing, manufacturing, packaging and building businesses that can absorb people into meaningful economic activity,” he said.
He noted that agriculture should no longer be viewed only as a traditional sector. He said it should also be a space of innovation, science, technology and entrepreneurship capable of transforming communities and stimulating economic participation.
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Investment in Black-owned Enterprises
The address also touched on the ongoing challenges faced by South Africa, including unemployment, inequality and barriers to market access. However, despite these realities, Tilo encouraged stakeholders to continue investing in agriculture and black-owned enterprises as part of the broader solution to economic inclusion and food security.
“Transformation without implementation remains a promise,” he said, urging all stakeholders to move beyond conversations and to focus on practical execution.
The event brought together strategic partners, government representatives, farmers and SMEs to reflect on the role of black farmers and agricultural entrepreneurs in driving inclusive economic growth and strengthening South Africa’s food system.
Throughout his address, Tilo repeatedly returned to the importance of hope, resilience and long-term commitment, reminding attendees that every investment into agriculture represents an investment into people, communities and the future of South Africa itself.
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