Hortfin, a blended-finance initiative supporting South Africa's deciduous fruit industry, recently marked its seventh year at an event in Paarl. Established in 2018 by the deciduous fruit and grape industries, the initiative has provided financial assistance to emerging growers and businesses in the value chain. By offering tailored debt products and post-investment support, Hortfin has sought to facilitate industry expansion, increase economic participation, and create employment opportunities.
Speaking at the event, Hortfin chairman Ronald Ramabulana acknowledged the challenges faced over the years. He noted that industry organizations had to take significant financial risks before commercial banks became involved. He attributed Hortfin's progress to partnerships and industry commitment. Jobs Fund head Najwah Allie-Edries highlighted the initiative's impact, noting that it had contributed to rural economic growth, job creation, and infrastructure development. She said Hortfin's model could potentially be replicated in other agricultural sectors.
Hortfin CEO Michael Brinkhuis stated that the initiative has fostered partnerships with government departments, development finance institutions, commercial banks, industry organizations, and financial intermediaries. These collaborations have helped establish a loan portfolio of approximately $24.5 million to support new-generation agribusinesses. Since its inception, Hortfin has provided financial support to first-generation enterprises, facilitated the creation of over 2,000 jobs, assisted in the establishment of vineyards and orchards, and contributed to the expansion of farming infrastructure.
Despite these efforts, challenges remain in ensuring the long-term sustainability of emerging agribusinesses. Hortgro executive director Anton Rabe reflected on the industry's transformation journey, which began two decades ago with an initiative supported by the Western Cape Department of Agriculture. He emphasized that while progress has been made, true transformation is not just about land ownership but about developing successful and profitable farming enterprises.
Economic pressures, market fluctuations, and climate-related risks continue to impact the sector, underscoring the need for continued investment and adaptable financial solutions. Hortfin aims to strengthen its support structures and expand partnerships to enhance financial inclusion, improve market access, and provide further skills development. As it moves forward, the initiative continues to play a role in fostering economic participation within South Africa's agricultural sector.
For more information:
Michael Brinkhuis
Hortgro
Tel: +27 (0)21 870 2900
Email: michael@hortfin.com
www.hortgro.co.za