TZANEEN – The once-thriving Sapekoe Tea Estate, abandoned after years of decline, are experiencing a dramatic transformation under the stewardship of the Makgoba community, Makgoba Asset Management (MAM), and agricultural giant ZZ2.

Once a cornerstone of South Africa’s tea industry, the development of a R100m avocado production farm over the next three years has commenced in the last weeks.

Established in the 1960s, Sapekoe was historically one of Tzaneen’s largest employers, supporting thousands of families across Magoebaskloof and surrounding villages.

However, collapsing global tea prices and rising production costs rendered the operation unprofitable, leading to factory closures, abandoned fields, and widespread job losses.

A community–commercial farming partnership

Following a landmark land claim, the Makgoba Makgoba Community Trust (MMCT) gained ownership of the estates. Instead of restoring tea production, the focus shifted to creating a sustainable agricultural model better suited to contemporary economic realities.

Through a long-term partnership with ZZ2, the former tea lands are being rehabilitated and planted with avocados.

“The redevelopment of the former Sapekoe estate is a long-term investment in both the land and the people who own it,” said BJ van Zyl, director at ZZ2. “ZZ2’s role is to bring world-class agricultural expertise and ensure that every hectare reaches its full potential. This partnership shows what can be achieved when commercial farming and community ownership work hand in hand.”

Early harvests show strong potential

The impact is already tangible. Last season, orchards known as Makgoba Dieplaagte at the foot of the Magoebaskloof pass, produced their first commercial harvest, exporting 200 tons of avocados. With plantings expanding, the project aims to export 240 tons in the coming season.

This project is being partially financed through the Department of Agriculture’s Revitalisation of Agriculture and Agro-processing Value Chain (RAAVC) initiative.

Long-term benefits for the Makgoba people

For the Makgoba community, the benefits extend beyond agriculture.

As landowners through MMCT, they are the primary long-term beneficiaries of all development on the property.

The partnership creates permanent and seasonal jobs, provides skills training in modern farming, and opens opportunities for medium- and small-scale farming. Revenue from rentals, produce sales, and future agribusiness ventures strengthens the trust’s capacity to deliver social programmes and improve livelihoods.

Local enterprise opportunities in logistics, maintenance, security, and agro-processing are also emerging around the orchards.

“For the Makgoba community, this project is more than a business venture; it is the restoration of our land, our dignity, and our economic future,” said Thupane Makgoba, representing MMCT. “These fields once symbolised loss. Today, they represent opportunity. The jobs, training, and revenue now flowing back to our people are helping families rebuild their lives.”

Future plans

Further variation is planned with the proposed development of a modern fuel station and crafts and tourism hub at the top of the Magoebaskloof pass, which is currently under consideration by authorities.

It will replace a derelict structure at the Dieplaagte site at the bottom of the pass, generating new employment and stimulating local business activity, Makgoba said.