South Africa has a vast amount of land. This land is being used for city centres, villages, farms, warehouses and factories. The amount of land in South Africa is the reason why the agriculture sector is one of the best performing in South Africa.
In Africa, South Africa’s agricultural land is the largest. The agriculture sector produces a variety of crops with maize being a major role player. In 2024, maize covered the largest harvested land area. In 2024, the country was among the top 10 maize-producing nations worldwide.
Outside of crops, the agriculture sector also produces great numbers in poultry. In 2020, there were more than 179 million living chickens in the country (although major losses in 2023 due to loadshedding affected current production numbers).
The importance of this sector is outlined in its contributions to the economy. As of 2020, exports from South Africa increased to $9,5 billion.
To ensure that the industry continues to grow and support the businesses operating within it, the government introduced the agri-industrial fund.
What is the Agri-industrial Fund?
The agri-industrial fund was developed through a partnership with the Industrial Development Corporation (IDC) and the Department of Agriculture, Land Reform and Rural Development (DALRRD).
The aim of the fund is to support a range of economically viable activities in agro-processing (food and non-food) sectors. Also, the fund aims to develop a competitive industry comprising the food, beverage, fibre, forestry and agro-derivative industries.
This will help the industry utilise and develop local and regional resources to supply local demand and increase participation in international trade.
Targeted Sub-sectors
The IDC has various sub-sectors it has targeted for the agri-industrial fund. These sectors include:
- High-value export-oriented crops including citrus, avocado, table grapes, blueberries and tree nuts such as macadamia and pecan.
- Poultry sector for contract growers with a minimum of two hundred thousand per cycle, independent vertically integrated operations, and a minimum of fifty thousand for layers.
- Livestock: piggeries, cattle, sheep etc. in vertically integrated operations.
- Expansionary acquisitions in all of the above sub-sectors.
These are the sub-sectors that have been targeted as the main beneficiaries of the fund.
How to Qualify for the Agri-industrial Fund
If you want to apply for the fund, you will need to meet the following criteria.
Qualifying Criteria
- The investee (company) must be at least 60% black owned.
- The acquisition of primary agricultural land parcels and/or commercially viable agricultural sector value chain operating entities (agri-business).
- Support existing operations for expansion in production on privately owned or land reform farms (brownfields and greenfield operations).
- The funds must be used for purchasing capital requirements and infrastructure.
- The needed funds must fall under working capital or production loans.
These are the qualifying criteria you need to meet before applying for the fund. The IDC has also written out exclusions for the fund. You will not be able to apply for the fund if:
- If you are a politician, you will need to serve a cooling-off period of 12 months after leaving office before applying.
- Employees from all spheres of the government.
- Employees of state-owned enterprises.
- Employees of all organisations serving as administrators of the scheme within credit providers.
- Foreign nationals and illegal immigrants.
- Dual citizens who hold public office in a foreign country.
- Special advisor for agricultural programmes at local, provisional and national levels.
- Part-time producer.
- Joint venture where the targeted producer collectively exercises less than 60% of voting rights.
- High-risk politically exposed persons.
- Producers who have mismanaged previous government support.
- Distressed farmers that would want to use the funds to settle existing debt.
How Does the Fund Work?
The fund works on the following terms of facility:
- Debt and grant to the qualifying applicants only (quasi equity/ equity on a case-by-case basis).
- The applicant cannot use the grant on its own but in conjunction with IDC funding.
- The assessment and approval processes will be guided by existing IDC processes.
- Business owners will also be required to contribute financially towards their own businesses.
Once everything is in order, you can send your application in. To apply for the agri-industrial fund, fill-in the online form.
For more information on government funding opportunities, explore your options in our guide to government funding.
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