This transaction, which saw Sakhumnotho acquire a 51% shareholding in ASG, propelled ASG to Level 2 B-BBEE supplier status, enabling ASG to expand its ability to participate directly in government and other institutional procurement processes, while at the same time enhancing ASG’s ability to serve the strong emerging farming market in South Africa.
Agriculture, especially the emerging farming community, is a key partner in tackling the critical issues of food security and unemployment in South Africa. This segment is often overlooked by the large agricultural companies resulting in high barriers to entry in terms of sourcing of products, access to education and training and ongoing development opportunities.
Says Mihan Louw, CEO of ASG: “We are passionate about the future of agriculture in South Africa. Since 2018, African Seeds Group has been on a journey to provide the best possible vegetable and agronomy seeds, chemicals, fertilisers, and other inputs to the emerging farmer. We provide emerging farmers with the same level of quality inputs and knowledge that is available to large scale farmers. We believe that, through this access, emerging farmers will be empowered to grow their output and their farms into successful businesses that positively contribute to their communities.”
The acquisition is in line with Sakhumnotho’s focus on investment in the agricultural sector, further enhancing the group’s ability to deliver on their mandate of unlocking Africa’s full potential, says Professor Sipho Mseleku, CEO of Sakhumnotho. “Emerging farmers play a key role not only in the economic potential of communities, but in the economy as a whole. Despite this, Africa’s full agricultural potential remains untapped and the sector requires significant investment to unlock this potential. We are excited to partner with ASG, as well as the broader Zaad Group, as we further deepen our involvement in the agricultural sector and look for new, innovative ways to grow this sector’s future.” Mseleku concludes.