Gauteng MEC meets with AFGRI

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The purpose of the meeting was primarily to address concerns raised by Mayathula-Khoza regarding the AFGRI/Agrigroupe transaction when she addressed AFASA's 2nd AGM on 20 October 2013. In particular, the MEC was concerned about the impact the transaction would have on transformation in the local agricultural sector including how the transaction may impact on smallholder farmer development and food security given the strategic role played by AFGRI in South Africa's agro-economy.

Commenting on the discussions after the meeting, AFGRI Group CEO Chris Venter said: "We are grateful that the MEC offered AFGRI an opportunity to apprise her of the facts and rationale of the transaction as well as allay legitimate concerns raised by her and AFASA recently. We are satisfied that such concerns were adequately addressed in the meeting and the parties committed themselves to collaborate as they explore ways in which to advance the commercial interests of local smallholder farmers, irrespective of organisational affiliation."

Economic opportunities

"In this regard, AFGRI looks forward to engage with AFASA and others in identifying economic opportunities in the sector as well as on how it can generally lend support to the development of emerging farmers in the country. Further, AFGRI remains committed to contributing towards food security in South Africa, and Africa as a whole, as well as to advancing the objectives of broad-based black economic empowerment in the sector," Venter said.

Once concluded, the transaction will result in significant improvements in black equity ownership and economic benefit in AFGRI making the company the most empowered agricultural group in terms of black equity ownership. Further, the deal will provide AFGRI with much needed capital to drive its long-term business expansion and socio-economic development plans in line with government's economic growth and transformation objectives.