Citrus Growers Association (CGA) CEO Justin Chadwick said yesterday it was proud to announce the Economic Transformation of Black Citrus Growers (ETBCG) Programme had disbursed R78.9 million to eight successful black farming operations across the country.
This was despite a major hike in farming input costs and freight rates as well as load shedding and operational issues at ports.
ETBCG, with a kitty of R307m, said the funds were being used towards access roads, land preparation, irrigation infrastructure, farm equipment, vehicles, fencing, packhouse equipment, a de-greening room, generators, a solar system and a sub-station.
Chadwick said that over the past three years just more than R161.3m of this funding has been approved and R78.9m disbursed to support black grower citrus operations, creating 78 permanent and 625 seasonal jobs in total, and enabling 208 hectares of new trees to be planted.
In 2019, the CGA launched the ETBCG Programme in partnership with the Jobs Fund, Land Bank, Department of Agriculture, Agriseta, the Lima Rural Development Foundation and FNB.
The CGA said this groundbreaking programme provided a major leg up for black growers, who usually struggled to obtain loan funding and financial assistance, but also focused on transferring skills to these farmers as well as creating new jobs in surrounding communities.
The local industry has predicted that citrus exports could grow to 260 million (15kg) cartons annually by 2032 if all role-players work together.
With transformation of the industry a key priority over the next 10 years, a target for black citrus growers’ contribution towards the overall 260 million vision had also been set, namely 50 million cartons annually, the CGA said.
“We believe the ETBCG Programme will contribute towards achieving this goal by assisting and supporting growers to expand their operations and export their produce to key markets across the world. The deployment of funds under the programme is expected to continue until March 2024, which will be followed by a monitoring period that will take place for another two years.”
Farmer Buyiswa Ndyenga from Sikhula Sonke Enterprises, near Addo in the Eastern Cape, said the programme had helped considerably on their five farms.
“The money came at the right time,” she said. “The price of everything went up and citrus farmers were struggling. But the programme’s money helped us plant new orchards and erect a 9km fence to stop the stealing of fruit,” Ndyenga said.
Luthando Farms, near Kirkwood in the Eastern Cape, was also a beneficiary of the programme.
Farmer Nonkwanele Mzamo said a lot of work still lay ahead.
“I am passionate about creating jobs. Because of the fund, it is easier to create jobs, and that feels good. Now we need to sustain these jobs.”
The CGA said what distinguished the ETBCG Programme, when compared with other transformation programmes, was the way the funding has been structured.
Beneficiaries received 36% of their funding as a pure grant, which has helped reduce their debt levels and assisted them in being able to make repayments. The remaining 64% had been structured as a blended loan at lower than prime interest rates.
Another major focus area had been skills development of beneficiaries to make them self-reliant, as well as training in surrounding communities so they can be employed by these farming operations.
To qualify for funding, growers have to have a minimum of 60% black ownership (of both assets and operations) as defined by the B-BBEE Act of 2013, while priority has also been given to enterprises with 100% black ownership. Most importantly, applicants also need to demonstrate that they would create permanent and seasonal job opportunities with the development funding.
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