Agri SA’s 5 year plan to revive the economy

and develop more Black Commercial Farmers in South Africa

1. Policy Framework 2. Diagnostic 3. Our Partners 4. The Solution

A. NDP Transformation Report Agri Development Fund (ADF)

Elements in agriculture
Ownership

1 1 Million jobs DAFF & DRDLR

2 500 000 ha under irrigation Financial systems Ownership R332 MILLION State land = title deeds to farmers will
unlock a large part of the economy
SPENT ON TRANSFORMATION
3 Underused land in Agri Co-ops 4 000 2,5 MILLION HA
communal areas Commercial farming DAFF & DRDLR
FARMS OF GOVERNMENT LAND
4 Value Chain approach Land Bank
104 100 FUNDING POTENTIAL - R17,5 BILLION
to job creation AGRICULTURE SECTOR BENEFICIARIES
Commodity organisations Support for
new farmers Principles of the ADF
Agri Education
• Possibly a blended finance model consisting of grant

B. Operation Phakisa
funding and private equity fund.
Support for new farmers
• Farmers want to:
Public Private Partnerships
27 PROJECTS
- do transactions at a discounted rate,
- have access to a vendor loan, and
Do we have the farmers? YES we do. - have access to subsidised interest rates.
Commodity Based Model Farm Workers • ADF will be based on the partnership principle with a
liability on both partners.
• Incentivise farmers to invest in the ADF through tax

C. Barclays Workstream
incentives and Agri BBBEE.
• A value chain approach to development.

Agricultural Value Chain

Agriculture Economics Objectives of the ADF
9 PROVINCIAL
AFFILIATIONS 26 COMMODITY
ORGANISATIONS

Total Value Farm + Assets

R460 billion ± 28 000 Agronomy Animal Production Horticulture
Accelerate
transformation and
Address
unemployment in
Stimulate an
increase in job
Improve access
to food in rural
land redistribution. rural areas. creation. areas.
FARMERS
Collateral
D. Agri BBBEE Code
R160 billion 36 CORPORATE
MEMBERS
The ADF is a
Ownership
1
34 000 Commercial Farmers
leverage model 25 %
2 Skills Development
Proposed Proportional
3 Enterprise Development 850 000 Farm Workers Contribution R10 bn
WEALTH TRUST COMPANY

4 Socio-economic Development Government

340 000 Emerging Farmers 75 %
5 Management Control Private Investors
(Confirmed)