Page 33 - DPSA_SDR Vol 12 No.2 2019

SOCIAL INVESTMENTS

GEPF investments support

emerging farmers, drive

transformation and bring

foreign earnings

The Government Employees’ Pension citrus fruit is estimated at one worker “We could see that working individually
Fund (GEPF), the biggest pension fund per hectare of an estimated 60 000 we were not making progress
in Africa, continues to play a pivotal role translating into about 60 000 workers and production was low,” Bennet
in the agricultural and agri-processing employed on citrus farms. Direct Malungane, coordinator of Mabunda
sector. In the 2017-18 financial year, the downstream labour requirements for Citrus, explained to a group of Mabunda
pension fund invested R10,3 billion in citrus are estimated at one labourer per Citrus’s investors during a site visit
the sector. 2 500 cartons packed: with about 100 earlier this year.
million cartons packed per year, some 40
“Though our investments in agriculture 000 jobs are created in packing plants “We didn’t have help with funding
may be lesser known, they form the for a period of six months, or 20 000 full- and markets for our fruit because the
priority part of our developmental time equivalents. In addition, there are ARDC [Agricultural Rural Development
investment mandate,” explains principal labour requirements for transportation, Corporation] terminated our strategic
executive officer Abel Sithole. “We are warehousing, port handling, research partner’s contract nine years ago.
committed to promoting economic and development, and processing.” Luckily, we then got the guys from Lona
growth, creating jobs, and driving Group in 2016 and they assisted us with
transformation, land reform and “We have seen in real and tangible funds and better farm practices.”
sustainability while generating positive terms how a well-timed investment
long-term returns for the benefit of our can take emerging farmers to the next The farmers of Mabunda Citrus have
members and of the entire country.” level of operations and profitability,” increased yields by 350% during the
says Sithole. “A case in point is our past two years: in 2017, Mabunda
The agricultural sector, he points out, investment in Lona Group, one of South Citrus exported 355 000 cartons valued
plays an important role in terms of job Africa’s large citrus exporters.” at about R38 million while the 2016
creation, especially in rural areas, in turnover from exports amounted to
assuring food security for the wider In 2016, the GEPF – through its asset R14,5 million. Mabunda Citrus plans to
population, and in earning foreign manager the Public Investment produce 558 000 cartons soon and to
exchange. Therefore, it makes perfect Corporation (PIC) – invested in Lona expand this to one million cartons per
sense to invest and nurture agriculture Group to drive empowerment, job year, mainly for the European and Asian
despite its relatively small contribution to creation and land reform in Limpopo markets.
the gross domestic product (GDP). in particular. Lona Group has a 49%
share in Mabunda Citrus, a fast-growing If all goes according to plan, they will
Furthermore, the National Development farming enterprise situated in Letsitele, also soon be able to employ more
Plan (NDP) fully recognises the about 35km outside Tzaneen. people. At present, Mabunda Citrus
potential of commercial agriculture for provides employment for 63 permanent
job creation. Over and above those Mabunda Citrus started as a loose employees, 42 temporary workers and
presently employed, the NDP identifies grouping of about 30 independent black approximately 300 seasonal workers.
250 000 direct jobs and a further 130 farmers that had each been allocated According to Malungane, the staff
000 indirect jobs as something to aim 10 hectares of land through the Moletele complement will expand to at least 100
for. land. They grew oranges, grapefruit, permanent employees in the near future.
lemons and various vegetables. By “It is very rewarding to see tangible
Citrus is one of the agricultural sub- 1999, the farmers realised that it would ROI [return on investment] as is the
sectors identified as having great probably be more advantageous to farm case with Mabunda Citrus,” comments
promise. The NDP states: “The the 300ha property jointly as one unit GEPF’s Sithole. “The figures look
employment requirement to produce and to focus on oranges. good – increasing yields by 350% is a

Volume 12 No.2 of 2019 | SERVICE DELIVERY REVIEW 31