The transformation strategy aligns with government objectives for inclusive economic growth and employment creation.
Black citrus growers are driving a transformation ambition that aims to capture half of South Africa’s citrus export market by 2032.
They have so far contributed 19% to the industry, surpassing targets set by the Agricultural Master Plan.
However, financing remains the biggest obstacle to emerging farmers, according to industry leaders at the first Black Citrus Growers Development Indaba.
The historic gathering brought together farmers, government officials, banks and development agencies to address transformation challenges in the citrus sector.
The event was the first dedicated platform for black citrus farmers to collectively strategise their future in the industry.
WATCH: Citrus indaba agencies address transformation in the citrus sector
Vision 2032: targeting 50% black contribution
The industry has set an ambitious target called Vision 50 for 2032. This goal aims to position black growers to supply half of all citrus exports within the next eight years.
“What excites me is that the progress is there, but not only the progress, the Vision 50 for 2032 is also quite exciting, making sure we can get black growers to a point where they’re supplying half of what is being exported,” said Karidas Tshintsholo, CEO of agricultural technology platform Khula.
The transformation strategy aligns with broader government objectives for inclusive economic growth and employment creation across the agricultural sector.
This ambitious target requires coordinated efforts across financing, technical support, and market access.
Tshintsholo said black citrus farmers have already contributed significantly to the economy through job creation and export revenues over the past two decades.
The next steps include developing a second transformation fund and exploring job fund opportunities to expand the support base available to farmers.
The timeline focuses on the upcoming growing season as a critical period for implementing enhanced support mechanisms.
ALSO READ: Gauteng’s small farmers buckle under pressure
Seeking global horizons
The Citrus Growers’ Association of Southern Africa (CGA) says a recent trade mission to Saudi Arabia, conducted in collaboration with the Department of Trade, Industry and Competition, has opened up promising new prospects.
This development follows the conclusion of the two-day Citrus Growers Development Chamber Indaba, held in Boksburg on Thursday and Friday.
Boitshoko Ntshabele, Chief Executive of the CGA, highlighted Saudi Arabia’s strategic location as a key advantage, noting its potential to serve as a gateway to high-growth markets.
“It offers easy access to Eastern Europe, as well as strong connectivity to China, India and the broader Southeast Asian region,” Ntshabele said.
“These regions represent huge growth opportunities, especially when you consider that China and India alone account for a combined population of 2.9 billion people.”
Financing challenges
Despite notable achievements, structural financing problems continue to hinder emerging growers.
Traditional lending institutions apply the same criteria to new black farmers as they do to established commercial operations with decades of banking history.
“The biggest challenge is financing. It’s very difficult; it’s tough to finance emerging growers. There are a lot of structural problems. A lot of the banks or financiers use the same rule book for an emerging grower as they would for an established grower,” Tshintsholo explained.
“If you think about a commercial farm, if they’ve been banking with the bank for 70 years and they have a bad five years, the bank doesn’t really mind. But if you just started and you’re 10 years in the game and you have a bad year, the bank is more likely to not fund you again.”
These challenges reflect deeper structural issues rooted in the country’s history, requiring tailored solutions specifically designed for emerging and first-generation black growers.
ALSO READ: Rising stock theft crisis threatens SA farmers and food security
Can technology address industry gaps?
Khula’s three-pronged approach addresses interconnected challenges facing emerging growers. The platform combines input supply, market access, and financing preparation to create sustainable pathways for farmer development.
According to Tshintsholo, the company serves more than 20 000 growers nationwide through its digital marketplace, which connects farmers directly with input suppliers, eliminating multiple middlemen who typically increase costs for emerging farmers.
“Emerging growers are actually paying higher for inputs compared to much more formal growers,” Tshintsholo noted.
The platform’s artificial intelligence features allow farmers to photograph diseased plants and receive instant diagnostic information, including recommended treatments and product options.
For market access, Khula operates a closed trading platform that connects pre-approved growers with bulk buyers including retailers and processors.
The platform guarantees immediate payment to farmers regardless of buyer payment terms, addressing cash flow challenges that often constrain smaller operations.
Government support and policy framework
Elder Mtshiza, chief director of the comprehensive agricultural support programme at the Department of Agriculture, emphasised existing programmes designed to unlock financing and market opportunities for black farmers.
“We have the blended finance scheme where we have partnered with the private sector, your IDC, your Land Bank, and Absa. So in terms of their plans to expand their production, to acquire lands as part of their redistribution, they have access to that funding,” Mutshiza said.
The department’s approach focuses on creating inclusive sectors while addressing broader economic challenges including employment creation and poverty eradication.
Policy stability has provided continuity for transformation efforts.
Mtshiza said the Agriculture and Agro-processing Master Plan, initiated during the previous administration, continues under current leadership without significant changes.
The programme also assists with licensing, regulations and permits needed for commercial operations.
She emphasised that policy changes must be carefully evaluated.
“The challenge would be if a policy is really changed willy-nilly without first evaluating whether it has had an impact,” she explained.
ALSO READ: Foot-and-mouth outbreak sparks farmer outrage
However, Agriculture Minister John Steenhuisen warned that the citrus industry faces mounting challenges that threaten its sustainability.
“South Africa’s citrus sector has earned its global reputation partly because of the high-quality standards we maintain. But this success is constantly under threat from biosecurity threats, such as citrus black spot, false codling moth, and greening disease,” he said.
Steenhuisen highlighted how climate change has already reshaped the production environment, with erratic rainfall patterns, droughts and floods affecting key growing areas, while rising protectionism in international markets creates additional barriers through increased tariffs and technical trade restrictions.
The minister outlined government’s commitment to supporting transformation through three key areas: improving port infrastructure efficiency, intensifying market access diplomacy, and providing targeted support for smallholder participation.
“Transformation cannot just be a slogan. It must be baked into what we do and backed by resources and practical pathways into the value chain,” he declared.
The minister proposed establishing a citrus value chain compact to align priorities between government, growers, exporters, and financiers, while scaling up mentorship and financing schemes for emerging farmers.
He said he envisions “a citrus industry where smallholder farmers, through cooperatives and shared packhouse facilities, are regular exporters,” emphasising that inclusive growth means raising the capacity of all participants to meet global benchmarks rather than lowering standards.
Industry collaboration and future planning
The Citrus Growers Development Company (CGDC) serves as a facilitator, bringing together diverse stakeholders including commercial banks, technology partners, and government departments to support farmer development.
Lukhanyo Nkombisa from CGDC emphasised the shift from traditional funding approaches toward comprehensive development planning.
“I think that approach may have been wrong. We were just funding because the funding was available. There was never a development plan,” Nkombisa said.
The new approach involves conducting due diligence on each black-owned citrus enterprise, followed by individualised development plans that specify required financial and non-financial support over defined periods.
Preparing farmers for commercial success
Plans are underway for a second transformation fund to expand support capacity for black citrus farmers.
The initiative aims to address challenges comprehensively rather than treating symptoms in isolation.
“It’s not confirmed yet, but that’s the immediate sort of next step,” Tshintsholo said.
Additional funding sources under consideration include job creation funds aimed at increasing the overall support pool available to farmers.
Beyond funding, the transformation strategy emphasised preparing farmers for commercial viability through business skills development and compliance training.
“What is crucial is that we need to upscale our farmers, we need to ensure that their businesses are fund ready, we need to show that their businesses are being operated as businesses and their compliance,” Nkombisa stated.
Economic impact and contribution
Black citrus farmers have contributed to South Africa’s economy for over two decades.
The industry’s transformation efforts reflect broader national objectives for inclusive economic participation while maintaining commercial viability and international competitiveness.
“In terms of the agricultural industry, the black citrus farmers for more than 20 years they’ve been contributing in terms of job creation, in terms of contributing to the economy due to their export volumes that are coming from them to different market destinations,” said one industry representative.
Strategic alignment
The transformation strategy emphasises farmer-led development rather than top-down approaches.
Black growers directly participate in strategy formulation to ensure alignment with their practical needs and challenges.
“They will ensure alignment by making sure that their strategy involves the black growers from the start. So it’s going to be a strategy for the black growers, by the black growers,” Mutshiza stated.
This collaborative approach aims to translate national policy frameworks into actionable local initiatives that address specific challenges faced by emerging farmers in the citrus sector.
READ NEXT: ‘If you don’t want to pay more, use less’: Parliament debates new water caps for farmers
