Agri-Industrial Fund

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THE

AGRI-INDUSTRIAL FUND

AIM

The Agri-Industrial Fund Aims To develop competitive, economically viable activities in agro-processing (food and non-food) sectors by developing local and regional resources to supply domestic demand and increase international trade.

 

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AGRI-INDUSTRIAL FUND OBJECTIVES

 

Supporting a range of economically viable activities in agro-processing including food & non-food sectors, the Industrial Development Corporation in partnership with the Department of Agriculture, Land Reform & Rural Development DALRRD offer the Agri-Industrial Fund.

 

Prioritising local and regional resources to supply domestic demand and increase participation in international trade, this specific scheme  aims to address funding constraints faced by black farmers and breaking entry barriers to commercial farming.

 

The Agri-Industrial Fund is a blended finance programme that will also be utilised to develop and implement high-impact black-owned large-scale commercial agricultural projects in the following agro-processing including food and non-food sectors;

 

  • High-value export-oriented crops: citrus, avocado, table grapes, blueberries, and tree nuts (macadamia, etc.)
  • Poultry: contract growers minimum 200 000 per cycle, independent vertically integrated operations, layers minimum 50 000.
  • Livestock: piggeries, cattle, sheep etc in vertically integrated operations.
  • Expansionary acquisitions in all the above sub-sectors.

 

Central to the recovery of South Africa’s local economy, the Agri-Industrial Fund aims to support the development and expansion of the agricultural sector by assisting qualifying black producers and investees in developing, expanding, acquiring, and integrating operations in prioritised agricultural value chains.

Qualifying Criteria

  • The Investee must be at least 60% black owned entity.
  • The acquisition of primary agricultural land parcels and/or commercially viable
  • agricultural sector value chain operating entities (agri-businesses).
  • Support existing operations for expansion in production on privately owned or land reform farms (brownfields and greenfield operations).
  • Funds must be used for purchasing capital equipment and infrastructure (“CAPEX”).
  • Working capital and/or production loan.

Instruments and Pricing

Funds will be provided to qualifying end beneficiaries as grants and with no pricing and subsidy implications from a risk perspective.

  • Debt and grant to qualifying applicants only (quasi equity/equity on a case-by-case basis).
  • The grant cannot be used on its own but in conjunction with IDC funding.
  • The assessment and approval process will be guided by existing IDC processes.
  • Business owners will also be required to contribute financially towards their business.

Application Form

*Please note IDC funds businesses from one million and above.

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