The development fund aims to create value by helping to transform the agricultural landscape of South Africa, strengthening the market-based ecosystem for black owned enterprises and suppliers along the food & beverage value chain and unlocking the potential of South Africa’s human capital.
Black South Africans own only 4% of Agricultural land in South Africa. Under the Agricultural Development pillar, the Kgodiso Fund aims to transform the South African agricultural landscape by developing a new generation of sustainable farming enterprises. The Fund aims to empower black farmers through funding, business development and increased access to market. The fund is committed to building the professional capacity of emerging black farmers while increasing the adoption of regenerative agriculture practices to build farmer resilience. (Land audit report, 2017)
The Kgodiso Fund’s investments in enterprise development are geared towards (i) the innovative capacity and advancement of the South African food system (ii) strengthening the market-based ecosystem for black-owned and black-women-owned enterprises and suppliers. While black people run 71% of South Africa’s businesses, the majority of the SMME's operate in informal sectors (approximately 89% share) (The Small, Medium and Micro Enterprise Sector of South Africa, 2016). This project exists across the supply-chain and focus on empowering black-owned businesses by increasing business operational efficiency and market access.
The unemployment rate in South Africa for people aged between 15-34 years in the first quarter of 2021 was 46.3% ( Stats SA). In order to unlock the immense untapped potential of South Africa’s human capital, the Kgodiso Fund’s education initiative aims to address key skills and knowledge gaps in the food system. The development of human capital is foundational to the transformation of the entire food system.