SOUTH AFRICA – A transformative Limpopo avocado farming project is turning a historic tea estate into a sprawling agricultural hub, promising to uplift more than 600 members of the Makgoba-Mamphoko community through enterprise development and sustainable employment. Spearheaded by the Small Enterprise Development and Finance Agency (SEFA) in partnership with commercial farming giant ZZ2 and the local trust, the multi-million-rand initiative is being positioned as a national model for expanding community participation in South Africa’s agricultural economy.
Located on the fertile slopes of the Makugas mountains outside Tzaneen, the land was once home to the iconic Sapekoe tea estate. Following a successful land claims process, the property was officially transferred to the Makgoba community in 2022. With the global tea market experiencing low returns, community leaders and agricultural partners pivoted to capitalize on the soaring worldwide demand for avocados.
The farming operation is being rolled out in strategic phases covering a total of 90 hectares. During the first phase, emerging farmers received approximately 8 million rand in support facilitated by SEFA. The current expansion, known as phase two, will initially cultivate 40 hectares before extending to the remainder of the land, with an estimated project cost of nearly 15 million rand.
Letlatsa Lehana, a representative for the Khula Credit Guarantee Scheme, highlighted the strategic advantages of the new expansion site. “The reason for this phase is its proximity to the river, which makes irrigation highly efficient,” Lehana explained, noting that a pump station will be situated near a local dam. “We are still finalizing the exact numbers, but having already secured European off-takers is essentially what we are here to achieve.”
The expansion is heavily backed by the Khula Credit Guarantee Scheme, working alongside the Department of Small Business Development and a major commercial bank.
Bertie Van Zyl, Director at ZZ2, emphasized that the funding models were deliberately crafted by the private sector in collaboration with state agencies to propel the community into commercial success. “We started our first commercial project together in 2018, co-funded by ZZ2 and FNB through the securities of Khula,” Van Zyl noted. “When it came time to develop the Sapekoe land, it made perfect sense to utilize that established, successful entity.”
Beyond crop production, the initiative is deeply focused on community upliftment. The operation has already permanently employed five individuals from the beneficiary pool. With the establishment of the second phase, project leaders anticipate hiring between 25 and 50 youths—described as the children of the beneficiaries—to work the orchards.
To ensure the long-term viability of the farm, organizers are incorporating advanced technological tools for optimal production. A spokesperson for SEFA emphasized that the agency’s investment strategy looks beyond traditional lending. By focusing on holistic support mechanisms, the agency aims to build sustainable small, medium, and micro enterprises (SMMEs) in the agricultural sector rather than simply injecting capital.
Planting for the new season is scheduled to commence in the coming months and wrap up by November, marking a prosperous new chapter for the Makgoba-Mamphoko Trust and the broader Tzaneen agricultural landscape.
