Two Limpopo farmers gear up for commercial farming in the Potato Belt with funding support from the Kgodiso Development Fund
The Kgodiso Development Fund, founded by PepsiCo South Africa (SA), is taking a significant step in boosting the agricultural landscape in the Limpopo province by investing in black-owned emerging farming enterprises. In a move to support sustainable farming and SMMEs growth, the Fund has allocated funding to propel these businesses into the ranks of commercial farmers in South Africa.
Funding Boost for Potato Farmers
Local potato farmer, Phophi Raletjena, received funding of R7 million for his farming operation. This financial support will enable him to cultivate 50 hectares of land; dedicating 30% to potato production to PepsiCo South Africa. He has an existing contract to supply potatoes to PepsiCo South Africa for its Simba chips business, and together with the funding has secured an additional offtake agreement for the supply of potatoes.
In addition, female farmer, Zelda Masoga, secured R1 million in funding for her Mazeli Farming and Projects, allowing her to grow potatoes on an extensive scale across 10 hectares., and she is currently applying to PepsiCo SA to supply potatoes for its potato chip business.
In this way, it is not only through funding emerging farmers, that PepsiCo and the Kgodiso Development Fund are transforming farming systems, but they are also transforming supply chains, by providing an important route to market for these farmers.
Both enterprises are nestled in the Potato Belt within the Capricorn District of Limpopo, renowned for its superior quality potatoes.
The Kgodiso Development Fund’s mission extends beyond providing capital. According to Diale Tilo, the Executive Director of the Fund, it aims to address the constraints limiting emerging farmers and SMMEs from realising their full potential. This comprehensive approach includes access to affordable capital, technical assistance, upskilling, and strategies for local ownership, which will ultimately guide emerging farmers towards becoming successful commercial farmers.
Raletjena expressed his excitement about the future, stating, “Potatoes are a crop of the future, presenting opportunities to address food security. With the support from Simba, I’m on a mission to feed the world with potatoes.”
Raletjena has been mentoring Masoga with technical skills and the use of some of his farming equipment.
According to Raletjana, the full participation of women in the agricultural sector is imperative, and that the funding and contract for Masoga’s farm will allow her to be a shining example to other female farmers.
Empowering Women in Agriculture
“In our humble beginnings, we initiated our farming venture with a small backyard plot. As demand steadily increased, it became evident that this space could no longer suffice. Subsequently, we expanded to a larger farm – a transition not without its hurdles, particularly as a woman farmer. Throughout this journey, we’ve learned the value of patience, as farming yields no instant gratification. With this financial injection, we are poised not only to expand our business but also to play a pivotal role in job creation, while ensuring that more families have food on their tables,” added Masoga.
Significance of Agriculture in Economic Growth
Tilo emphasised the significance of agriculture as a vital engine of growth for the South African economy. He stressed that this sector has the potential to uplift many struggling South Africans by increasing food production, stimulating economic activity, and creating job opportunities. The Fund’s mission is clear: to create shared value solutions that enhance the long-term sustainability and resilience of the country’s food system.
Kgodiso Development Fund’s Alignment with PepsiCo’s Initiatives
The Kgodiso Development Fund, although independent of PepsiCo South Africa, is part of PepsiCo South Africa’s public interest commitments with the overarching goal of driving economic growth. It was established at the time of the Pioneer Foods acquisition and aligns with PepsiCo’s global initiative, PepsiCo Positive, which focuses on strategic and sustainable end-to-end transformation.