AgDevCo partners with Mahela and ZZ2 to further develop the Skutwater avocado and citrus farming operations at Weipe, Limpopo, South Africa
July 31 2024 - 4:30AM
UK Regulatory
AgDevCo partners with Mahela and ZZ2 to further develop the
Skutwater avocado and citrus farming operations at Weipe, Limpopo,
South Africa
![AgDevCo partners with Mahela and ZZ2 to further develop the Skutwater avocado and citrus farming operations at Weipe, Limpopo, South Africa.](https://ml-eu.globenewswire.com/Resource/Download/cd9e17e5-1980-4f96-8c33-69287cbc47f4/agdevco-ltd.png)
CAPE TOWN, South Africa , July 31, 2024 (GLOBE
NEWSWIRE) -- Mahela Group, a leading
citrus and avocado producer from Letsitele, and ZZ2 Group, a
leading avocado and tomato producer from Mooketsi, are developing a
400-hectare avocado and citrus farming operation in Weipe, Limpopo,
South Africa, with a non-controlling minority equity investment
from AgDevCo.
The partnership enhances Mahela’s and ZZ2’s
existing relationship which already combines their expertise as
some of South Africa’s largest citrus and avocado producers
respectively. The Skutwater project will see the current combined
orchard size increase from 190 hectares to 400 hectares under the
first phase, with a potential to expand to 1,500 hectares in the
second phase with plans to develop expansion opportunities in
neighbouring countries, including Mozambique. Skutwater is
anticipated to employ over 1,200 equivalent full-time employees on
completion.
“We believe that with trusted partners such
as ZZ2 and AgDevCo we will be able to unlock exciting opportunities
in the global market. With innovative and efficient farming
practices, the Skutwater project will not only add to agricultural
development in the area, but also create many new and needed job
opportunities to people from the nearby communities,” says
Barend Vorster, Mahela Group CEO.
The global market for citrus and avocados
remains favourable, and with sophisticated and sustainable
agronomic practices under favourable conditions in Weipe, higher
yields of quality fruit can be achieved, focused on the earlier
international market window.
“The partnership with the Mahela Group and
AgDevCo enables ZZ2’s team to join forces with astute
agriculturalists. We look forward not only to make a success of the
operation at Weipe, but also to explore other opportunities in
Africa with our partners over time,” says Tommie van Zyl, ZZ2
Group CEO.
AgDevCo’s CEO, Daniel Hulls, says: “AgDevCo
is delighted to partner with ZZ2 Group and Mahela Group to
contribute to the commercial and impact success of Skutwater. We
are deeply impressed by the farming capabilities and business ethos
of both and are excited to learn from them in South Africa and to
actively explore opportunities elsewhere in Africa.”
NOTES FOR EDITORS:
For further information please contact Burtie van Zyl, GM Avocado
ZZ2 and Investment Project Manager: burtie@zz2.co.za
This transaction was supported by DLA Piper and
Bowmans in South Africa.
The Mahela Group is one of
South Africa’s largest privately owned citrus producers and
exporters, with a diversified portfolio in avocados, bananas,
macadamia nuts, litchis and kiwis produced across Limpopo as well
as in the Southern Cape. The Mahela Group sees itself as a
custodian of nature and, therefore, strives towards producing fruit
in an environmentally sustainable and responsible manner.
www.mahela.co.za
The ZZ2 Group, is one of the
largest tomato producers globally and a leading producer of export
avocados and deciduous fruits. They also produce medjool
dates, cherries, almonds and onions. ZZ2’s purpose is to grow
differentiated primary agricultural products for customers
worldwide. Their mission is to optimise resources and to farm
in harmony with nature in a sustainable way. They strive to
create value for all their ecosystem partners in a balanced
manner. www.zz2.co.za
AgDevCo is a specialist
investor in African agriculture, growing sustainable and impactful
agribusiness, with USD 280m under management. Their vision is a
thriving commercial agriculture sector, which benefits both people
and planet by investing in and supporting agribusinesses to grow,
create jobs, produce and process food and link farmers to markets.
They support their partners to work towards climate sustainability,
and where possible, regenerative solutions. As at the end of 2023,
AgDevCo’s had committed $178m committed into more than 30
investments across 9 countries in sub-Saharan Africa.
www.agdevco.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cd9e17e5-1980-4f96-8c33-69287cbc47f4