Witzenberg Pals I Agro Producers - Agri SAAgri SA

Witzenberg Pals

Started by Local Municipality, Agro Producers and the community in Witzenberg

Why was it started?
An initiative for successful land reform, economic growth, job creation and social cohesion. The establishment of successful black farmers;
To involve the whole community in an inclusive process;
To extend the initiative to other areas and agri related industries;
To establish the Witzenberg Centre as “one stop shop”;
Focus on mentorships and training programmes.

How was it done?
Participant commercial farmers donate 30% of the shares in the project to the beneficiary farmer(s) to ensure that the latter have a veto over all major decisions. The upcoming black farmers also had an option to buy commercial farmer shares.
The relationship between the beneficiary and the partner farmer gives the former better access to finance, and guarantees access to markets.
The beneficiaries have an option to purchase all the shares.
Beneficiaries received access to the value chain

How was it funded?
Land Redistribution for Agriculture Development 23.3 Million (13.8 for land, 1.25 for project and 8.5 for infrastructure on farms)

Social and Economic Implications
The Workers Trust receives at least 5% of profits for community projects of their choice.
The beneficiary farmer is indemnified from debts of the new venture while a minority shareholder. The “one stop shop” provides a physical location where the coordination, facilitation and mentoring functions can be implemented. 1200 new jobs were created