Land Bank’s Wine and Spirits Fund is a ground breaking partnership to drive transformation in South Africa’s wines and spirits sector.
South Africa is currently ranked seventh among the top wine-producing nations globally. In 2023, South Africa produced approximately 933.8 million litres of wine. The industry contributes around ZAR 56.5 billion to the national gross domestic product.
A Groundbreaking EU–South Africa Partnership
In a ground breaking partnership, emanating from the Financing Agreement (Agreement No. ZA/DCI-AFS/040-854) between the European Commission and the Republic of South Africa the Wine and Spirits Fund was established under the Support Programme for the Transformation of the Wine and Spirits Sector in South Africa – including marketing and distribution to third country markets outside of the EU.
The programme comprises two components: 1) transformation of the sector and 2) marketing and distribution. Land Bank will be responsible for the 195 million transformation component of the programme, and the National Agricultural Marketing Council for the R98 million marketing and distribution component.
The first component aims to facilitate the transformation of the Wine and Spirits sector for the inclusion and meaningful participation of Black producers across the value chain. Land Bank is pleased to announce that it will be accepting applications for the Wine and Spirits Fund effective 19 June 2025.
Leadership Perspectives on the Initiative
“South Africa is recognised as one of the leading countries in the production of wine, which is exported throughout the world. Land Bank is delighted by the support of the EU. It will drive a transformation agenda in the wine and spirits sector, which has historically not been fully inclusive in its production value chain,” says Land Bank Chief Executive Officer, Themba Rikhotso.
Sandra Kramer, the EU Ambassador to South Africa, emphasised that “Our partnership for the transformation of South Africa’s wine and spirits sector is indeed ground breaking. We will support the South African Government to ensure a sustainable transformation of the sector, including support for more equitable access to land and infrastructure, education and training, as well as socio-economic development. It will also ensure sustainable marketing and distribution of South African wines and spirits to third country markets – particularly Black-owned brands.”
Funding Opportunities and Access to Capital
The EU’s EUR 10 million grant contribution to the Wine and Spirits Fund, will ensure successful applicants can access either a grant or an “equity contributor”.
A grant can be used to assist with the funding of business requirements to the value of between ZAR 500 000 and ZAR 3.5 million. The “equity contributor” leverages funding from Land Bank and other financial institutions to the value of between ZAR 3.5 million and ZAR 10 million.
There are several qualifying and selection criteria that applicants will have to satisfy, with the main one being that they must be Black-owned and managed enterprises operating within the wine and spirits sector.
Visit www.landbank.co.za for more information