Fedgroup has co-funded a $40-million agricultural investment in sub-Saharan Africa, partnering with Verdant Orchards and the Danish development finance institution IFU.
The project, targeting citrus and avocado crops, marks Fedgroup’s first ventures in Mozambique and Zambia and expands operations within South Africa.
The specialist financial services provider states the investment is part of a broader strategy to mitigate the risks associated with South Africa’s volatile economy by tapping into sub-Saharan Africa’s vast agricultural potential.
The investment includes purchasing Noordgrens, an 800-hectare citrus farm in Limpopo, equipped with a packing facility to support citrus exports. Plans are also in place to build a school and install solar streetlights for local community support.
In Mozambique, Verdant Citrus Massingir will develop 450 hectares of citrus orchards by 2025, and in Zambia, the Verdant Orchards Munyati project aims to establish 360 hectares of avocado orchards by 2026, tapping into rising global demand for the crop.
Fedgroup’s investment will create more than 1 200 jobs across the three countries and includes sustainability initiatives such as regenerative farming, biodiversity preservation, and reduced chemical use. Beekeeping training for community members is also being considered.
Barry Hawke, chief investment officer at Verdant Orchards, noted that Fedgroup and IFU’s backing was instrumental in achieving this growth, positioning Verdant as a prominent player in Southern African agriculture.
The investment involves navigating land rights and operational challenges across multiple African countries. However, Fedgroup asserts that a thorough due diligence process and Verdant Orchards’ local expertise position the partnership to manage these complexities in foreign markets.
Fedgroup’s general manager of Impact Investing, Warren Winchester, stated this expansion is just the beginning.
“As sub-Saharan Africa’s agricultural potential continues to grow, Fedgroup is well positioned to continue its investment in projects that benefit both investors and the continent’s rural communities.”
