Edge designs ESD strategy to support agri businesses.
AFGRI is one of the largest agricultural commodity trading companies in South Africa and is a leading JSE listed agricultural services and foods company, providing a wide range of products, services and inputs to farmers, producers and consumers of agricultural products. The AFGRI Services business of the AFGRI Group comprises Retail and Mechanisation and Grain Management. These divisions focus on serving the primary agricultural production sector within AFGRI’s geographical area. This area includes the Mpumalanga, Gauteng, North West and Free State provinces.
In 2012, AFGRI wanted to pilot an ESD program that would assist with providing support to emerging farmers.
The program needed to assist emerging farmers to achieve specified outputs and financial performance targets. In addition to assisting the entrepreneur to meet these targets, they required efficient financial governance processes integrated into the program that included:
- Tracking budget variances
- Assessing performance against productivity metrics
- Support AFGRI in the process of fund release to the Investee
- Ensuring there is sufficient financial records to conduct an annual audit and sufficient operational records to populate metrics required to track adherence to legal agreements
Edge Growth developed an ESD program targeted at emerging farmers for AFGRI to pilot offering the following solutions:
- Integrated and holistic ED strategy development
- Loan repayment structuring
- Organizational restructuring
- Business Development Support provision
- Agricultural & ED training
High potential SME gains access to finance and growth support resulting in business generating a profit and doubling turnover.
Fund designed to channel investment from the savings and investment industry into SME development.
Through tailored growth support and access to funding, this business has been able to increase its turnover by 50% in the space of 3 years.