There are considerable constraints for emerging farmers and SMMEs to reach their full potential including barriers to entry, sustainability headwinds and supply chain constrains. The fund has developed a tailored solution to address each challenge.

Approach to Agricultural Development

Africa’s productivity is improving overall, but it is still a net importer of food, and this makes agriculture the biggest business opportunity in Africa. However, it faces enormous challenges and hence there’s a need to broaden access to expertise, funding, and land for commercial farming and production.

The funding model includes providing access to affordable capital alongside key technical assistance and upskilling, attracting leverage to scale impact and create local ownership, and building the business case for investing in communities. The funding model allows the emerging farmers to graduate to a commercial farmer.

Kgodiso Agricultural Development Funding Model

Identify promising, high-potential, emerging farmers with limited access to funding opportunities.

Mitigate risk by providing low-cost capital and market access opportunities to catalyze funding from partner funds

Establish demonstration farms and provide on-farm mentorship to train farmers on climate-smart agricultural practices that increase productivity and build long-term resilience.

Graduate farmers into commercial scale financing programs with partner funds, and collaborate on testing and applying innovations including new varietals, and precision and water saving technologies etc.

Approach to Enterprise Development

The fund will develop an ecosystem of professional emerging enterprises along the value chain.

Kgodiso Enterprise Development Funding Model

Identify suppliers and enterprises operating within the food & beverage value chain that meet the current and future business needs of the sector

Provide funding & cofounding for working capital, machinery and equipment

Enterprises are supported by Third parties appointed by Kgodiso Development Fund to bring pipeline, manage risks and build tangible capacity. Third parties focus on end-to-end business support to ensure commercial viability, growth of enterprises and financial independence.

Help the enterprises and suppliers grow and scale through technical, business and funding support

Integrate suppliers and enterprises into the food & beverage value chain and assist the enterprises in establishing a good track record and financial position. The interventions should result in commercial independence which includes access to commercial funding.