Land Bank said the eagerly awaited €10 million EU-supported fund for black-owned wine and spirits brands could be rolling out as early as October 2024. In collaboration with South Africa Wine and the National Agricultural Marketing Council, significant efforts are underway behind the scenes to launch the fund that has been anticipated since 2019.
Speaking at Food For Mzansi’s brunch conversation series at Nampo Cape in Bredasdorp in the Western Cape, Paballo Vilakazi, fund manager for strategic funds at Land Bank, discussed the upcoming initiative. She explained that it will provide both grant and equity finance, with a strong emphasis on empowering black entrants, including women, to expand their presence in the wine and spirits industry.
Phil Bowes, manager of the industry transformation advisory at South Africa Wine, highlighted the critical role of financial viability in ensuring the success of these emerging businesses, noting that the grant funding provided by the programme could be the key to overcoming the barriers that many new entrants face.
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Fund promises to boost financial viability
While the EU fund’s details are still being finalised, Vilikazi added that the excitement around its potential is already palpable. “We are quite excited and look forward to how the funding programme will assist black entrants and women in expanding their operations and growing.”
Bowes emphasised the importance of financial viability. “Often, people entering the industry lack sufficient equity and grant funding can help address that. We must ensure these businesses can become viable.”
Karin Kleinbooi, executive manager for transformation and development at South Africa Wine, echoed this sentiment. “The fund will help bring these businesses to scale, connecting and integrating them into mainstream markets,” she explained.
Kleinbooi furthermore discussed how the new funding efforts are expected to align with ongoing support for black-owned wine businesses and farms in South Africa. She highlighted anticipated changes in growth and inclusion within the industry, emphasising a broader transformation across the entire value chain.
She also outlined key milestones for the next five years, focusing on measurable success in transforming the wine industry and tracking the impact on local communities connected to these businesses.
Vilakazi said the fund will be centred on collaboration, aiming to maximise its reach through a holistic, inward-looking approach that includes Land Bank Insurance Company and engagement with South Africa Wine and key industry players, including technical partners.
She added that the fund will not only provide financial support but also promote social and ethical compliance. With Land Bank’s extensive distribution network, Vilakazi noted, they are well-positioned to administer this game-changing fund.
- Click on this link to download the Absa AgriTrends report, which highlights South Africa’s agricultural export landscape and how the sector is adapting to global challenges.
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