The fund is managed by the Department of Agriculture, Land Reform and Rural Development. It was formed as an intervention to support black-owned small agricultural enterprises that were previously disadvantaged from participating in mainstream economic activities. The mandate of this fund is to also include the promotion of enterprise development initiatives through value add and agro-processing infrastructure. The WCDoA receives applications on behalf of DALRRD.
PRODUCTS OFFERED UNDER AGRIBEE FUND
- New equity deals
This is meant for black people who want to acquire equity and shares, who have been operating in the sector for the past three consecutive years as well farmworkers scheme who are starting new projects.
- Increasing equity ownership and interest acquisition
This is funding for increasing shareholding and interest acquisition of black people in a viable and sustainable agricultural business enterprise.
- Support for agro-processing/value-adding enterprises
For enterprise development initiatives (value addition and agro-processing), the fund will be utilised as follows:
- Start-up processing/value-adding businesses
This is funding for businesses that have been doing very well at the primary production level who then wish to start adding value or process their products.
- Existing processing/value-adding businesses requiring expansion capital
This is funding for existing enterprises for improving operations and productivity so that they can generate more output and jobs.
- Enterprise development initiatives
This is funding for the support of development initiatives as outlined in the AgriBEE charter/sector codes.
- Black people in the entire agricultural value chain are encouraged to apply.
- Applicants can only be juristic persons who are incorporated in South Africa with valid constitutional documents;
- The applicant (i.e. the individual/s within the legal entity) must be black and the entity 100% black-owned. In cases where the applicant is not 100% black-owned, AgriBEE fund can only support the portion held by the black person/s
- The applicant must be directly involved in the commodity or industry where investment is sought and should have been operating for at least the past recent three (3) consecutive years.
PREREQUISITES FOR FUNDING
- Complete the application form.
- Applicants must provide supporting documentation for legal entities.
- A business plan should be submitted and the cash flow projections must be realistic and positive.
- Viability studies will be conducted by the Land Bank and the report of such studies shall form part of the evaluation.
- Proof of market partner or identified market, market plan and signed contract must be supplied.
- Minimum own contribution is needed from the applicant (refer to the criteria below)
CRITERIA FOR FUNDING
- Government and Land Bank employees, including politicians, will not be eligible to receive grant funding and/or support from the AgriBEE Fund.
- An applicant should have his or her own 10% contribution to the grant provided and it must be deposited into the AgriBEE Fund account before the disbursement of the grant. This shows an applicant’s commitment to the initiative.
- An applicant can only receive a minimum grant that amounts to R1 000 000.00 and the maximum grant that amounts to R5 000 000.00, provided that DALRRD and Land Bank may apply their discretion and approve applications of more than R5 000 000.00 and 20% own contribution would be needed for such cases.
- The grant must only be used for purposes for which it was applied, therefore DALRRD and Land Bank must have access to verify if the money is indeed used for the intended purpose.
- For equity deals, applicants may only be assisted to acquire at most, up to 49% in the initial investment. This is to ensure that the skill is transferred gradually over a period and that the business continues to be viable and sustainable.
- For value-adding or agro-processing initiatives, the applicant/s must show the ability to sustain the operations of the marketing/processing facility running at full capacity.
- Purchasing of farms and farming infrastructure at primary level (the Fund supports post-production activities such as agro-processing/value addition infrastructure).
- 100% acquisition of a business at initial investment by the applicant(s) (applicants may only be assisted to acquire at most, up to 49% in the initial investment).
- Investment in farms under land claim.
- Applicant(s) who are not directly involved in the industry/commodity where investment is sought will be excluded (passive or speculative investors).
|Location||Physical address||Contact number|
|Pretoria||20 Steve Biko Street,
Arcadia, Pretoria, 0001
|012 319 8133|
Alternatively, you can visit: http://www.dalrrd.gov.za
|Location||Physical address||Contact number|
|Elsenburg||Muldersvlei Road, Elsenburg, Stellenbosch, 7607||Mr Edwin Boshoff
Tel: 021 808 7739
Ms Londiwe Thabethe
Mr Maliviwe Makeleni