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the other half into immovable assets. Dirks shared this: “Genades-
hoop’s success is from not waiting for or relying on grants from
the government. If the grants do indeed come, it is used only to
boost the existing capital.”
The journey to profitability for Genadeshoop was long and their
mentor Richter continued to assist them by renting his own machi-
nery to them at a reasonable price and providing employment to
Genadeshoop farmers, as all their profits went back into the busi-
ness to buy machinery.
A neighbouring farm of 450 ha went up for auction, and Richter
continued to assist Genadeshoop by putting down 15% of the
farm’s value as a deposit. However, another R1,5 million was re-
quired to stock and make the new farm operational. According
to Richter, “South African producers have to compete with inter-
national producers that are highly mechanised, subsidised and
who practice precision farming, so locally the battle is won in
the contracting business. It must however be said that it is only
through the grace of the Lord that this project is surviving and do-
ing so well.”
The relationship between the Genadeshoop community and their
mentor is one of love, trust and commitment. The main advice the
Bakwena ba Mohlabetse farmers received from the Genadeshoop
farmers was:
Start small and grow gradually;
Don’t rely on grants;
Get experts involved and focus on the transfer of skills; and
Give the beneficiaries the opportunity of employment instead of
only cash dividends or buy-outs.
Agri Dwala
The representative farmers of the Bakwena ba Mohlabetse group
and the ARC’s group as well as Stroebel travelled to Agri Dwala
farm outside Napier, near Caledon in the Western Cape. Here the
group met Mr Kosie van Zyl, the mentor of Agri Dwala.
Van Zyl approached the local previously disadvantaged community
in the area; more specifically those families that were already
farming on a household scale. He proposed that they register a
company under which the land they obtain and future assets may
be registered.
Agri Dwala (Pty) Ltd was registered and was awarded a tender in
2006 for renting some of the municipal land of Napier, amounting
to 643 ha of arable land, for a period of five years with an option to
rent for the subsequent five years.
Van Zyl approached the local co-operative, Overberg Agri, for a
production loan and secured the loan with reasonable terms that
included a session on the harvest. In 2010, Agri Dwala Properties
(Pty) Ltd received a 50/50 grant and a long-term loan from
Pioneer Foods to buy the farm Karsrivier of 316 ha, on which they
farm with grain and livestock.
Agri Dwala, Van Zyl and Mr Piet Blom then registered and started
an operations company with a shareholding of 70%; 15% and
15% respectively. Van Zyl explains: “The operations company
carries all the risk, and gives the mentors a sense of ownership
which fosters commitment in the mentorship relationship.”
The operating company rents the Agri Dwala land as well as all
other land on which the group farms. Eight of the beneficiaries
received loans of between R12 000 to R25 000 per person from
Land Bank which they used to buy cattle – most of these loans have
been paid back in full and the rest are up to date with instalments.
Furthermore, the LRAD programme provided the opportunity for
Agri Dwala to buy the farm Jafters Krantz of 268 ha, on which they
also farm with grain and livestock.
Of the 29 Agri Dwala beneficiaries, four work as permanent staff
on the farms and the rest have the preferred option of part-time work
on the farm – a minimum of five hours a week and wages are paid
at the end of each month, whilst all of the 29 beneficiaries of the
Agri Dwala group get dividends.
The women in the Agri Dwala group run a guest house and a
wedding venue on the farm for an extra income and they plan to
expand their enterprise in the most creative ways.
If a beneficiary wants to leave, they sign an agreement that con-
firms it is by their own accord and in good faith and the trust pays
them their current shareholding in cash.
The main advice the Bakwena ba Mohlabetse farmers received from
the Agri Dwala farmers was:
Start small and grow gradually;
Invest all profits back into the business; and
Explore various avenues of revenue.
2: Agri Dwala farm visit.
2