The Gauteng Department of Agriculture and Rural Development (GDARD) says its R100 million blended finance programme is beginning to unlock investment in the province’s agro-processing sector, with 58 businesses already approved for funding and a further 11 projects progressing through financial due diligence.
By Maile Matsimela, digital editor at African Farming
The figures were revealed during the second Gauteng Agroprocessing Convention and Expo 2026 held at the Emperors Palace on 2 July, where the department reported on progress made since last year’s inaugural convention.
The blended finance facility, officially launched at the previous convention, attracted approximately 188 applications, highlighting the growing demand for financial support among agro-processing enterprises. The funding combines grants with loan finance to help businesses expand production, improve processing capacity and access larger markets.
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Additional funding reaches hundreds of enterprises
Beyond the blended finance programme, the department reported that nearly 500 agro-processing enterprises have benefited through the Comprehensive Agricultural Support Programme (CASP), which has invested almost R19.9 million into qualifying businesses.
Further financial support includes approximately R5.8 million distributed through the AgriBEE Fund, while a partnership with Nedbank has channelled around R8 million into aggregation and incubation initiatives. Direct support to micro-enterprises has totalled approximately R4 million.
Chief Director for Gauteng Agroprocessing and Economic Services, Matlatjo Makaepea, said the funding forms part of a broader strategy to help businesses grow from small start-ups into commercially competitive enterprises capable of supplying formal markets.
From home kitchens to commercial markets
Rather than focusing only on financing, the department showcased businesses that have progressed through its enterprise development programmes.
One of the examples highlighted was Chuckchill, which started producing food from a home kitchen before moving into an incubator at Riversands Hub and eventually expanding into an industrial park.
Another beneficiary, Carter, trading under the Virgin Mall brand, received blended finance to strengthen its processing equipment and logistics, while Zazi Juice has grown its presence in the retail and hospitality sectors through departmental support.
The department also highlighted P & M Fresh, which has successfully entered institutional markets and now supplies both public and private hospitals after receiving conditional grant support.
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Market access becoming a priority
While access to finance remains important, Makaepea said the department is increasingly focusing on helping agro-processors secure reliable markets. Its market access programme links businesses with retailers, farmers’ markets, state procurement opportunities, digital marketplaces and large agro-processing companies through off-take agreements.
One of the flagship initiatives that the department introduced over the past year is an egg-aggregation facility established in partnership with the South African Poultry Association. The facility enables small-scale egg producers to package their eggs according to legislative requirements, allowing them to supply major retail chains.
During the past financial year, 11 poultry farmers received enterprise assessments and business plans to prepare them for supplying retailers through the aggregation facility.
Building businesses that can compete
The department has also invested heavily in preparing businesses for formal markets.
More than 200 farmers and agro-processors have received training on South African Good Agricultural Practices (SA GAP) and Hazard Analysis and Critical Control Point (HACCP) standards to improve compliance with food safety and quality requirements demanded by retailers and institutional buyers.
According to Makaepea, Gauteng remains strategically positioned as South Africa’s agro-processing hub, processing around 35% of agricultural produce from the region, contributing about 20% of the country’s agricultural output and hosting approximately 42% of South Africa’s registered agro-processing enterprises.
He concluded by encouraging industry stakeholders to continue engaging with the department and providing feedback that will help strengthen future support programmes for emerging agro-processors and farmers.
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