Gauteng launches R100 million Fund to Boost Black-owned Agro-Processing Businesses
Pretoria,south Africa – In a critically important move to invigorate teh provincial economy,Gauteng has unveiled a R100 million Agro-Processing Fund aimed at empowering black-owned businesses within key agricultural value chains. The initiative, a collaborative effort between the National Empowerment Fund (NEF) and the Gauteng department of Agriculture and Rural Growth (GDARD), was announced as a strategic turning point for the region’s food sector.
MEC for Finance and Economic Development, Lebogang Maile, underscored the critical role of agro-processing in driving economic growth for Gauteng. Echoing this sentiment, MEC of Agriculture, Vuyiswa Ramokgopa, described the convention as a pivotal moment for the province’s food economy, emphasizing a commitment to creating an inclusive, export-ready, and job-rich sector through strategic partnerships and decisive interventions.
The NEF-GDARD Agro-Processing Fund is structured as a blended finance facility, combining 30% grant funding with 70% debt. It specifically targets black-owned agro-processing enterprises operating within six priority value chains: grain, horticulture, poultry, red meat, cannabis, and aquaculture.
Mzi Dayimani, CEO of the National Empowerment Fund, highlighted agro-processing as a vital pathway for inclusive industrialization, rural revitalization, and food sovereignty. He stated that the partnership with GDARD is “catalytic,” designed to dismantle historical funding barriers by offering structured support, technical assistance, and crucial market access. Dayimani expressed pride in co-architecting this new food economy, noting that the fund has already received 188 applications, with 32 fully meeting the requirements and an additional 18 under review. beyond financial backing, the fund provides pre-investment support, facilitates off-take agreements, and aids entrepreneurs in integrating into regional value chains.
Dayimani stressed the necessity of collective action, stating, “no single institution can unlock the agricultural sector alone.” He added that through blended finance, co-investment, and systemic alignment, the aim is to enable black processors to evolve into exporters and significant employers.
Currently, Gauteng’s agro-processing sector contributes over R78 billion to the national economy, representing 5.2% of the province’s gross domestic product.