Land Bank noted that most black entrepreneurs in the wine industry tended to be on the periphery of the sector, involved in activities such as bottling and distribution, and that its fund aimed to change this narrative. Picture Ayanda Ndamane/Independent Newspapers
The Department of Agriculture mandated the Land Bank to launch a multi-million rand European Union-backed fund aimed at transforming the South African wine and spirit industry by providing financial resources, training, and support specifically to black-owned businesses and farmers.
Earlier this week it was announced that the Land Bank would likely emerge from a four-year debt default position after its debtors had agreed to a “landmark” debt restructuring solution. Following the signing of legal agreements and the fulfilment of all conditions, the debt restructuring solution would take effect from next week, ending the Land Bank’s debt default position.
Paballo Vilakazi, the Land Bank fund manager for strategic funds, announced at NAMPO Cape 2024 that the fund would distribute money in tranches, with the Land Bank as the implementing agent.
The Land Bank's national network of provincial offices would distribute the funds as grant and equity finance to qualifying enterprises. She stated that they anticipated the fund's launch next month.
“To qualify for this finance the enterprise must already be in business and operational. The intention is to deepen participation by black entrepreneurs across the entire value chain. Applicants could also be acquiring equity in an existing operation or increasing their shareholding.”
Vilakazi noted that most black entrepreneurs in the wine industry tended to be on the periphery of the sector, involved in activities such as bottling and distribution, and that the fund aimed to change this narrative.
She said the bank would have monitoring and evaluation processes in place post-funding to ensure that the fund’s objectives to contribute to the sector’s transformation could be achieved. These objectives sought to go further and monitor the fund’s impact on social and ethical compliance, including the interests of farmworkers.
Vilakazi stated that Land Bank offered holistic solutions, including insurance where applicable, and will be collaborating with other relevant external stakeholders and role players who would provide technical support to qualifying entrepreneurs, among others.
“Most funds do not support non-commercial activities; however, this fund is unique as it finances the cost of enabling Wine and Agricultural Ethical Trade Association (Wieta) certification, which assists with implementation and compliance with social and ethical practices. This is a major consideration for the Land Bank as its mandate is aligned with other broader socio-economic considerations,” Vilakazi stated.
This certification also unlocked access to broader local and international markets. The Land Bank was said to be perfectly positioned to administer this game-changing fund with its extensive distribution network.
Details about the application process and qualifying criteria would be announced when the fund was officially launched.
Vilakazi, who was a panellist alongside Karin Kleinbooi, the executive manager for transformation and development at South Africa Wine, and Phil Bowes, the Manager of Industry Transformation Advisory at South Africa Wine, emphasised that this fund would be centred on collaboration.
The goal was to maximise its reach by providing a holistic, inward-looking solution that includes Land Bank Insurance and engagement with SA Wine and key industry players, including technical partners.
Today, the Minister of Agriculture, John Steenhuisen, will attend Grain South Africa’s Nampo Cape to engage the country’s farming community and address concerns affecting this key sector of the South African economy.
The Department of Agriculture said Steenhuisen would specifically discuss the recent trade agreements signed in China, fair trade for farmers and their contribution to food security and his plans to improve the infrastructure crucial to this economic sector.
BUSINESS REPORT