Our work
Value Chain Development
AGDA focuses on developing inclusive and sustainable value chains across key agricultural commodities. Our integrated approach ensures meaningful participation of black farmers while driving commercial success.
Inclusive Commodity Value Chains
Improving Black Farmer contribution to National Production Output
Black Farmer Share in Commodities
Our Aggregator Models
AGDA’s operational model represents a comprehensive approach to agricultural development, combining integrated area-based development with strategic partnerships and innovative funding solutions. At our core, we function as a catalyst, bringing together diverse stakeholders across the agricultural value chain through an orchestrated and programmatic approach.
Value Chain Development
The Blouberg Agri-Services Hub is a unique approach to agricultural development that is addressing the critical need to increase black farmer participation in commercial potato and vegetable production. Currently, black producers contribute only 1% to commercial potato production in South Africa, despite Limpopo being the country’s largest potato-producing region. Through strategic partnerships with De Beers (Seed capital), VKB (input financing), and PepsiCo’s Kgodiso Fund, this initiative combines centralised mechanisation, technical assistance, and market access facilitation. The hub’s integrated support model has already demonstrated significant impact, with 155 hectares developed and 853 jobs created, while targeting expansion to support 400 farmers in vegetable production by 2026.
Current Impact
- 155 hectares cleared and planted
- 853 jobs created
- Partnership with De Beers, VKB, and PepsiCo
- Market access secured through Fresh Produce Market, Mozambique, PepsiCo, SPAR
Target Impact (2026)
- 890 jobs
- 320 new hectares
- 40 new black farmers
- 400 farmers in vegetable production
Livestock Development
The Blouberg Livestock Hub initiative addresses a critical gap in communal farming areas, where approximately 40-50% of the national herd is owned by communal farmers who currently face significant market access challenges. This vertically integrated model combines breeding support, animal healthcare, and market access through an innovative hub structure. The initiative’s comprehensive approach includes essential facilities from breeding to processing, designed to support 470 communal farmers while creating 70 formal jobs in the value chain. Building on successful pilot phases and pre-feasibility studies, the project emphasises improved land rehabilitation and enhanced traceability systems, marking a significant step toward transforming communal livestock farming into sustainable commercial operations.
Our Aggregator Models - Blouberg Livestock Hu
Project Value: R80m
Integrated support model
- Breeding farm
- Support Services Hub
- Pre-conditioning facility
- Feedlot
- De-boning facility
- Mobile Animal Healthcare
Target Impact
- 470 Communal Farmers supported
- 70 formal jobs in the value chain
- Improved calving rates
- Enhanced land rehabilitation
Moringa Industry Development
AGDA’s Moringa Industry Development initiative represents an ambitious effort to establish a new high-value agricultural sector in South Africa. This comprehensive programme aims to cultivate 10000 hectares over five years, with potential to create 30000 jobs across the value chain. The model focuses on creating an inclusive industry from cultivation to value-added processing, emphasising community participation and sustainable practices. Through strategic partnerships and market development initiatives, the project addresses the growing demand for moringa products while creating significant economic opportunities in rural areas. The initiative includes robust support systems for farmers, from technical training to market access facilitation, ensuring sustainable industry development.
Industry Development Goals
- 10000 hectares planned over 5 years
- 30000 jobs (Direct/indirect)
- New market development
- Value-added processing
Bean Production
AGDA’s focus on bean production represents a significant opportunity to enhance food security and create sustainable economic opportunities in the sector. With an ambitious target of developing 5000 hectares over five years, this initiative aims to address the growing demand for protein-rich, climate-resilient crops while creating 2500 direct and indirect jobs. Building on AGDA’s aggregator model, the beans development program incorporates comprehensive production support systems and structured market access facilitation to ensure sustainable farmer development. The initiative particularly focuses on empowering black farmers, who currently contribute only 1.3% to wheat and grain production nationally, by providing technical assistance, mechanisation support, and established market linkages. Through integrated value chain development and strategic partnerships, this program aims to transform beans from a subsistence crop into a commercial opportunity for emerging farmers.
Development Targets
- 5000 hectares planned over 5 years
- 2500 jobs (Direct/indirect)
- Market access facilitation
- Production support systems
Innovation & Finance
Innovative Financial Solutions
EA AGRI Impact Investment Fund
The De Goede Hoop Fonds represents a groundbreaking partnership between AGDA and the Netherlands-based Excelsis Co-operatie, designed to catalyse agricultural transformation in South Africa. This strategic Impact Equity Fund addresses a critical challenge in South African agricultural financing: the lack of first movers in project investment. With a robust pipeline of three billion rands spread across the full agricultural value chain, the fund aims to stimulate further funding from commercial banks and financial institutions. By making strategic investments, the fund will facilitate easier entry for new participants in the value chain over the next decade, supporting AGDA’s mission to mobilize resources for previously disadvantaged farmers while stimulating growth throughout the entire agricultural ecosystem.
Status: Prospectus complete
- 5000 hectares planned over 5 years
- Roadshow: Oct-Nov 2024
- Funding flow: Dec 2024
- Focus: Agricultural development and transformation
HARVEST LOAN Financing
AGDA Financial Services’ HARVEST LOAN product represents an innovative solution to address the critical funding gap faced by smallholder and emerging black farmers in South Africa. Through a strategic partnership with a South African DFFI, this R100 million facility will provide working capital solutions tailored to the agricultural cycle, supporting farmers from field preparation to harvest. The program specifically targets micro and small-scale farmers, offering loan periods ranging from 3-8 months with a maximum value of one million rands. This initiative is uniquely structured with comprehensive support systems, including pre- and post-loan technical assistance, and features innovative risk mitigation through formal offtake agreements and dedicated banking facilities, ensuring both financial accessibility and sustainability.
- Partnership with SEFA
- Value: R100m proposed facility
- Target: Micro and small farmer financing
- Products: Harvest Capital and Enterprise Funding
AGDA Guard Insurance Solutions
In partnership with SAPCOR Insurance, AGDA is pioneering transformative insurance solutions designed specifically for small and medium-scale agricultural producers. Set to launch in March 2025, this initiative addresses a critical gap in the agricultural sector by providing affordable and accessible insurance products. The program features innovative solutions tailored to the unique risks faced by emerging farmers, moving beyond traditional insurance models to create products that truly serve the needs of developing agricultural enterprises. This partnership represents a significant step forward in de-risking agricultural investments and protecting farmers’ livelihoods, ultimately contributing to the sustainability and growth of South Africa’s agricultural sector.
- Partnership with SAPCOR Insurance
- Launch: March 2025
- Focus: Affordable insurance products for small & medium producers
- Features: Innovative product solutions
Innovative Funding Models
AGDA’s innovative funding approach encompasses a comprehensive transaction landscape that addresses the diverse financial needs across the agricultural sector. With a pipeline valued at over R4 billion, our funding models support enterprises ranging from micro to mega commercial scale. The transaction landscape demonstrates our commitment to inclusive growth, with dedicated funding streams ranging from R80 million for micro enterprises to R3 billion for mega commercial projects.
AGDA Transaction landscape
AGDA create tailored solutions that combine blended finance approaches, working capital solutions, grant funding, and commercial structuring. This multi-tiered approach ensures appropriate support at each level of agricultural development – from supporting emerging farmers through patient capital and grants, to facilitating large-scale commercial transactions through structured finance solutions. Currently, our active pipeline includes transactions at various stages, from due diligence to capital raise preparation, reflecting our commitment to creating sustainable funding mechanisms that drive agricultural transformation while ensuring commercial viability.
Quick Links
Quick Links
- Grain Building, Agri-Hub Office Park 477 Witherite Street Block A The Willows Pretoria
- info@agda.org.za
- 012 000 9790
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