SOUTH AFRICA – A highly anticipated Limpopo avocado farming project is taking root on the fertile slopes of the Makugas mountains, transforming a historic tea plantation into a lucrative export enterprise. Driven by a powerful collaboration between the Small Enterprise Development and Finance Agency (SEFA), commercial agriculture leader ZZ2, and the Makgoba-Mamphoko Trust, the initiative is designed to integrate more than 600 community members into South Africa’s mainstream agricultural economy.
Pivoting from Tea to High-Demand “Green Gold”
The land, formerly known as the iconic Sapekoe tea estate, was officially transferred to the Makgoba community in 2022 following a successful land claims process. Recognizing that the traditional tea market has experienced declining profitability, stakeholders made a strategic pivot. Avocados were chosen due to their soaring global demand and high yield potential, ensuring the newly reclaimed land generates maximum economic value.
Multi-Million-Rand Investment and Phased Expansion
The sprawling 90-hectare operation is being rolled out in strategic phases, heavily supported by the Khula Credit Guarantee Scheme in partnership with the Department of Small Business Development and a commercial banking partner. During the initial phase, emerging farmers received an estimated 8 million rand in facilitated support. The current second phase of the **Limpopo avocado farming project** carries an estimated cost of nearly 15 million rand.
Letlatsa Lehana, representing the Khula Credit Guarantee Scheme, outlined the logistical advantages of the current expansion.
“The land that we are in right now is actually phase two, where we are going to do 90 hectares. We are going to start with 40 hectares and then there is going to be an expansion for the remainder,” Lehana explained. Highlighting the site’s geography, Lehana noted that the proximity to a nearby river and dam allows for a highly efficient pump station and irrigation setup. Crucially, Lehana confirmed that the project has already secured European off-takers, cementing the farm’s export viability.
A Legacy of Cooperative Success
The joint venture leverages years of cooperative success between the private sector and local communities. Bertie Van Zyl, Director at ZZ2, noted that the funding models were deliberately crafted to propel the Makgoba community into commercial farming independence.
“Sapekoe is one of those areas that is an iconic tea estate; it was transferred in 2022 to Makgoba,” Van Zyl said. “We started our first commercial project in 2018 already, co-funded by ZZ2 and FNB bank through the securities of Khula, and it made sense that when we come to developing the land of Sapekoe, we utilize that entity.”
Job Creation and Holistic Enterprise Development
Beyond crop production, the initiative heavily prioritizes local employment and modernization. The farming operation has incorporated advanced technological tools to guarantee successful harvests and optimal water usage.
Currently, the enterprise has permanently absorbed five individuals from the local beneficiary pool. With the rollout of the second phase, leadership anticipates creating an additional 25 to 50 jobs specifically targeting the youth and children of the beneficiaries.
Representing SEFA’s modern approach to rural development, a spokesperson for the agency emphasized a shift away from traditional lending. By investing heavily in SMMEs through holistic support mechanisms, the agency ensures the enterprise remains sustainable long-term, rather than just injecting capital and stepping away.
Planting for the new orchards is currently underway and is expected to be completed by November, marking a prosperous new era for the Tzaneen region and setting a benchmark for community-owned agriculture in South Africa.
