South Africa’s proposed Transformation Fund could be a game-changer for black farmers and emerging agri-entrepreneurs — but only if its purpose, structure and impact goals are clearly defined.
Stakeholders in the agriculture and agribusiness sector are cautiously optimistic about the new fund’s potential to unlock real, broad-based economic inclusion. But as it stands, many still have more questions than answers.
By Thapelo Machaba – Food for Mzansi
Industry leaders say that while billions have been poured into empowerment funding over the years, the outcomes haven’t always matched the promises — too much money goes to box-ticking compliance, with limited measurable impact on building resilient black-owned businesses.
“The Transformation Fund must not become just another pot of money,” says one sector analyst. “It needs clear delivery frameworks, accountability, and honest tracking to make sure it actually transforms supply chains and market access.”
Producers, agribusinesses, and development partners are calling for:
- A clear plan for how funds will be allocated and monitored.
- Transparent criteria for beneficiaries, so support goes where it’s needed most.
- Collaboration with industry bodies and communities to avoid duplication and red tape.
- Practical measures to help black farmers scale up, compete and stay in business for the long haul.
Done right, the Transformation Fund could break down the barriers that have kept historically disadvantaged producers locked out of mainstream value chains. But without clarity and accountability, there’s a risk it could repeat the mistakes of past empowerment initiatives.
For South Africa’s agri-sector — and the broader economy — the stakes couldn’t be higher.
