A pioneering blended finance partnership between the UK
Government, South African development financiers, industry bodies
and implementing partners is demonstrating how collaboration can
unlock commercial opportunities for farmers in Mpumalanga,
helping to build alternative economic pathways as the region
undergoes its energy transition.
In coal-dependent provinces like Mpumalanga, where the shift to a
low-carbon economy is reshaping the local economic landscape, new
sources of growth are essential. Blended finance supports this
shift by using public funds to reduce investment risk and crowd
in private capital. This enables farmers to scale their
operations, create jobs and build sustainable, climate-resilient
businesses.
Lisa Weedon, Deputy British High Commissioner to South Africa,
said:
The UK is committed to supporting South Africa in transitioning
to a low-carbon economy. Through this blended finance model, we
are working with local partners to pilot innovative solutions
that unlock further investment, support the diversification of
Mpumalanga's economy and create jobs.
Through its implementing partner, international non-profit,
TechnoServe, the UK has partnered with two agri-financiers - Agri
Finance Facility (AFF) and Hortfin, to support two initial pilot
investments in Mpumalanga, with additional investments in the
pipeline. The UK's contribution helps de-risk commercial
investment and unlock inclusive growth opportunities for
pre-commercial farms.
According to AFF Chief Investment Officer, Teboho Phooko,
collaboration with the UK enabled Zwagershoek, a farm on
community-owned land, to access tailored finance, technical
support and market access. This integrated approach has helped
improve risk management, ensure commercial sustainability and
position the farm for future scale.
Zwagershoek Farm, located in Hazyview, spans 51 hectares of lemon
orchards on land owned by the Sandford Community Trust. Phased
support from AFF and the UK Government is stabilising farm
operations through investment in improved crop management, the
purchase of high-quality equipment and irrigation infrastructure.
In phase two, the farm will access initial expansion finance
which will catalyse an eventual expansion to 200 hectares, a move
projected to support up to 500 jobs.
Hendrik Alberts, Managing Director of Zwagershoek, remarked:
The support provided by the UK Government and AFF has
significantly strengthened our management capacity and job
creation efforts. Last season alone, between 100 and 120 people
were employed during harvesting. As we expand, we expect to
contribute even further to the regional value chain and South
Africa's export economy.
Afrikan Farms (Pty) Ltd, a 100% black-owned family agribusiness
near Amersfoort in Mpumalanga, currently operates 4 hectares of
apple orchards. With support from the UK Government, in
collaboration with Hortfin and Hortgro, the farm has developed a
plan to expand from 4 to 19 hectares between 2026 and 2029. This
expansion is expected to create 85 new jobs. If the farm
ultimately scales to the full 50 hectares, it could create an
additional 174 jobs.
Hortfin Acting CEO, Mariette Kotze, added:
Afrikan Farms identified apple production as a way to diversify
income streams. By scaling into a fully viable commercial unit,
we anticipate significant job creation and long-term
sustainability.
Hortfin has expanded its financing operation in Mpumalanga as a
result of this partnership.
Highlighting the broader vision, TechnoServe's Senior Inclusive
Investment Director, Melanie Machingawuta said:
We have been working with the UK Government for the past 7
years alongside investors to drive green and inclusive growth in
the Global South. In South Africa, our journey intersects with
the just energy transition and the transformation of the
agricultural sector.
Afrikan Farms shows how structured collaboration and blended
finance can turn a pre-commercial farm into an export-ready
commercial model that attracts further investment. The objective
is not only to support one or two farms, but to demonstrate a
replicable model that encourages others to invest
Collectively, partners agree that blended finance, anchored in
collaboration, technical support and market integration, is more
than a funding tool. It is a scalable driver for inclusive growth
in Mpumalanga's transition to a low-carbon economy.
