Fedgroup has partnered with Verdant Orchards and the Danish development finance institution, IFU, to co-fund a $40-million agricultural investment in sub-Saharan Africa. This initiative focuses on citrus and avocado production, marking Fedgroup's inaugural ventures into Mozambique and Zambia, while also expanding its operations within South Africa. The investment aims to diversify risk by leveraging the agricultural potential in sub-Saharan Africa.
The project includes the acquisition of Noordgrens, an 800-hectare citrus farm in South Africa's Limpopo, featuring a packing facility to facilitate citrus exports. Additionally, the initiative plans to enhance local community support through the construction of a school and the installation of solar streetlights.
In Mozambique, the development of 450 hectares of citrus orchards is planned by 2025 through Verdant Citrus Massingir. Meanwhile, in Zambia, Verdant Orchards Munyati aims to establish 360 hectares of avocado orchards by 2026. This investment is expected to generate over 1,200 jobs across the three countries and incorporates sustainability initiatives, including regenerative farming and biodiversity preservation.
Barry Hawke, chief investment officer at Verdant Orchards, acknowledged the critical support from Fedgroup and IFU, which has positioned Verdant as a key player in Southern African agriculture. Despite the challenges of navigating land rights and operational issues across different nations, Fedgroup's comprehensive due diligence and Verdant Orchards' local expertise are expected to manage these complexities effectively.
Warren Winchester, Fedgroup's general manager of Impact Investing, expressed optimism about the future, stating, "As sub-Saharan Africa's agricultural potential continues to grow, Fedgroup is well positioned to continue its investment in projects that benefit both investors and the continent's rural communities."
Source: Moonstone