#NampoCape2024: Land Bank and Dept of Agriculture to launch fund to transform SA wine industry

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Paballo Vilakazi, the Land Bank fund manager for strategic funds, announced at Nampo Cape 2024 that the fund will distribute money in tranches, with Land Bank serving as the implementing agent.

The Land Bank's national network of provincial offices will distribute the funds as grant and equity finance to qualifying enterprises.

Vilakazi stated, "We anticipate the fund's launch in October this year. To qualify for this finance the enterprise must already be in business and operational. The intention is to deepen participation by black entrepreneurs across the entire value chain. Applicants could also be acquiring equity in an existing operation or increasing their shareholding.”

Redefining wine industry

Vilakazi noted that most black entrepreneurs in the wine industry tend to be on the periphery of the sector, involved in activities such as bottling and distribution, and that the fund aims to change this narrative.

She added that the bank will have monitoring and evaluation processes in place post-funding to ensure that the fund’s objectives to contribute to the transformation of the sector can be achieved. These objectives seek to go further and monitor the fund’s impact on social and ethical compliance, including the interests of farmworkers.

“Land Bank offers holistic solutions, including insurance where applicable, and will be collaborating with other relevant external stakeholders and roleplayers who will provide technical support to qualifying entrepreneurs, among others.

"Most funds do not support non-commercial activities; however, this fund is unique as it finances the cost of enabling Wine and Agricultural Ethical Trade Association (WIETA) certification, which assists with implementation and compliance with social and ethical practices. This is a major consideration for the Land Bank as its mandate is aligned with other broader socio-economic considerations,” Vilakazi stated.

This certification also unlocks access to broader local and international markets.

Due to its extensive distribution network, Land Bank is perfectly positioned to administer this game-changing fund.

Details on the application process and qualifying criteria will be announced when the fund is officially launched.

Vilakazi, who was a panelist alongside Karin Kleinbooi, executive manager of transformation and development at South Africa Wine, and Phil Bowes, manager of industry transformation advisory at South Africa Wine, emphasised that this fund will be centred on collaboration.

The goal is to maximise its reach by providing a holistic, inward-looking solution that includes Land Bank insurance and engagement with SA Wine and key industry players, including technical partners.