A groundbreaking collaboration between FarmSol and Exxaro Resources is challenging the notion that agriculture and mining are incompatible industries when it comes to sustainable development. The partnership aims to bridge the gap between smallholder and commercial farming, providing a positive development impact on mining land.
One success story that highlights the transformative power of this collaboration is that of David Lesesa, the founder of LSTL Trading Enterprises, a grain farmer in Leeuwpan near Carolina, Mpumalanga.
Lesesa, who had long struggled to acquire land for farming, was allocated 2 282 hectares through lease agreements by Exxaro Resources at its Strathrae properties in Mpumalanga. However, the lack of financing made it challenging for him to secure production loans, as he had no collateral or asset security.
Partnership behind his success
Aron Kole, the managing director of FarmSol Holdings, emphasised the importance of trust and transparency in successful partnerships. He stated, “It was a collaborative and transparent partnership that led to his success. Our working relationship is based on trust.”
FarmSol provided Lesesa with unsecured funding to fulfil his farming dream, enabling him to overcome financial obstacles and establish a thriving agricultural enterprise.
Lesesa’s initial attempts at farming faced setbacks, but everything changed when he was introduced to FarmSol Holdings in 2019. FarmSol, as an implementing partner of South African Breweries (SAB), offers production loans, market access, and mentorship to farmers. With FarmSol’s support, Lesesa’s farm, LSTL, experienced remarkable growth.
The annual turnover increased from approximately R400 000 to an impressive R8 million, as Lesesa expanded his production from 50 hectares to cover the entire 1 100 arable hectares. Yields also soared, from under five tonnes per hectare to an impressive nine tonnes per hectare. LSTL cultivates maize and soybeans for FarmSol on 700 hectares, while independently growing crops on an additional 600 hectares for open markets.
Legacy beyond traditional practices
Reflecting on his journey, Lesesa expressed profound gratitude to both FarmSol and Exxaro for transforming his life. “Meeting these two companies changed my life in ways I could not have imagined. It has been a long road filled with challenges, but I’m a proud commercial farmer today because of this partnership,” he said.
Igna Dougal, Exxaro Resources’ legal asset and property manager, highlighted the significance of land tenure for emerging farmers. Speaking at a recent harvest day hosted by LSTL and FarmSol in Mpumalanga, Dougal emphasised, “Once you have secured tenure and addressed the land issue, you can unlock funding and other opportunities.”
She praised the collaborative efforts of FarmSol, Exxaro, and LSTL, stating that they serve as an inspiring example of overcoming challenges through like-minded partnerships.
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Empowering communities
Dougal further underscored Exxaro’s commitment to leaving a positive legacy beyond traditional mining practices. By investing in sustainable land uses like agriculture, Exxaro aims to empower communities and contribute to South Africa’s economy and food security.
Dougal stated, “Agriculture plays an important role in South Africa’s economy and a critical role in our food security.”
Looking ahead, Dougal expressed confidence in the success of the project and announced plans to expand the programme further. Exxaro is currently in discussions with potential partners to create additional opportunities for farmers, building upon the positive momentum generated by the FarmSol and Exxaro partnership.
The collaboration between FarmSol and Exxaro is seen as a testament to the transformative potential of cross-sector partnerships. By combining their expertise and resources, they have empowered emerging farmers like Lesesa, creating a sustainable pathway for economic growth and food security in South Africa.
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