The Motsepe Foundation and RCL Foods will provide about 70 million rand for farming projects involving rural and traditional communities in Limpopo and Mpumalanga, they said on Wednesday.
The farming and farming projects are in Partnered with Agri SA, through its subsidiary Agri Enterprises, and established commercial farmers and traditional leaders in these provinces.
Financing will be in the form of soft loans at 3% interest.
Founder of the Motsepe Foundation Patrice Motsepe said, “It is imperative that traditional communities, poor rural and urban communities, black farmers and other historically disadvantaged communities participate and benefit from agriculture and the agricultural industry in SA.”
< p>“We have a lot of urgent work and actions to do to achieve this,” he said.
According to the foundation, will they saved a land reform project in Mpumalanga that the government funded and handed over to the Hhoyi, Siboshwa and Matsamo traditional communities.
The project failed because traditional communities lacked the capital, financial and technical resources had the skills and expertise for the sustainability and long-term success of this project, the foundation said.
Three companies were set up to grow sugar cane on this land, Agri SA said.
< p>In Limpopo, the project will focus on citrus cultivation established for the benefit of the traditional Majeje community led by Hosi Ntswanwisi in partnership with Komati Fruit Group and Absa.
This project will be dedicated to the cultivation of citrus fruits on 457 hectares of irrigated land and will create about 50 new permanent and 300 seasonal jobs. In total, the two projects will create and sustain 1,541 jobs (seasonal and permanent).
Agri SA, along with the Motsepe Foundation, said they have identified access to capital “as a key constraint for projects with real potential to support and advance aspiring farmers and have joined forces to find concrete solutions. Many promising projects across the country have not been able to secure adequate funding to operate, largely due to a lack of secure land tenure.”
Similar funding projects are being extended to other provinces.
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