The South African Wine and Spirits Fund (SAWSF), established to drive transformation within the wine and spirits sector, was officially launched at a ceremony held at the Allée Bleue Wine Estate in Franschhoek on Thursday (19 June).
The fund was established as partnership emanating from a financing agreement among the Land Bank, the European Union (EU) and South Africa.
According to Kwena Kompae, Deputy Director-General of the national Department of Agriculture, focusing on economic development, trade and marketing, this partnership “serves as catalyst for transformation” and is a “vehicle of change and a powerful tool for includive economy growth”.
The fund comprises two components, namely the transformation of the wine and spirits sector and marketing and distribution. The Land Bank will be responsible for R195 million to drive the transformation component, while the National Agricultural Marketing Council will contribute R98 million towards the marketing and distribution component.
This according to a press release by the SAWSF.
South Africa currently ranks seventh among the world’s leading wine-producing nations. In 2023 the country produced approximately 933,8 million litres of wine. The industry contributes an estimated R56,5 billion to the national gross domestic product, the press release stated.
Sandra Kramer, EU ambassador to South Africa, emphasised that “our partnership for the transformation of South Africa’s wine and spirits sector is indeed ground breaking. We will support the South African government to ensure a sustainable transformation of the sector, including support for more equitable access to land and infrastructure, education and training as well as socio-economic development. It will also ensure sustainable marketing and distribution of South African wines and spirits to third country markets, and particularly black-owned brands.”
The EU’s 10 million-euro grant to the SASF will enable successful applicants to access either a direct grant or support through an equity contributor. Grants will assist with business funding between R500 000 and R3,5 million, while the equity contributor leverages additional funding from the Land Bank and other financial institutions for projects valued between R3,5 million and R10 million.
Applicants must meet various qualifying and selection criteria, the primary requirement being they be black-owned and -managed enterprises operating within the wine and spirits sector.
According to Rico Basson, Chief Executive Officer of SA Wine, the objectives of the SAWSF include strengthening public-private partnerships by co-creating a new chapter within the country’s wine and spirits sector, doubling the number of black-owned wine farms in the coming years and establishing an additional 500 ha of vineyards.
