Fedgroup has co-invested $40 million in agriculture across sub-Saharan Africa, collaborating with Verdant Orchards and Denmark’s development finance institution, IFU. This project, focused on citrus and avocado farming, marks Fedgroup’s initial expansions into Mozambique and Zambia, alongside continued investments within South Africa.
This strategic move aims to reduce South Africa’s economic risks by leveraging the region’s agricultural potential. The investment includes the acquisition of Noordgrens, an 800-hectare citrus farm in Limpopo with its own packing facility, supporting citrus exports. Additionally, Fedgroup plans to build a school and install solar streetlights to benefit the local community.
In Mozambique, the Verdant Citrus Massingir project will cultivate 450 hectares of citrus by 2025, while in Zambia, Verdant Orchards Munyati will develop 360 hectares of avocados by 2026, responding to growing global demand. Together, these initiatives are set to generate over 1,200 jobs and incorporate sustainable practices, including regenerative farming, biodiversity preservation, and reduced chemical usage. Community beekeeping training is also being considered.
Verdant Orchards’ chief investment officer, Barry Hawke, highlighted Fedgroup and IFU’s support as crucial to positioning Verdant as a leader in Southern African agriculture. While navigating land rights and operational complexities in multiple countries, Fedgroup’s diligence and Verdant’s local expertise are expected to ensure successful project management.
Warren Winchester, Fedgroup’s general manager of Impact Investing, emphasized that this expansion is just the beginning: “With sub-Saharan Africa’s agricultural potential on the rise, Fedgroup is well-positioned to support investments that benefit investors and rural communities alike.”