Two of South Africa’s largest agricultural producers, the Mahela Group and the ZZ2 Group, are set to embark on an ambitious venture in the Limpopo province, developing a 400-hectare avocado and citrus farming operation. The project, located in Weipe, represents a significant expansion of their existing operations and aims to create substantial job opportunities while increasing their foothold in the global agricultural market.
The initiative is bolstered by a non-controlling minority equity investment from AgDevCo, a prominent agricultural investment firm with a focus on sustainable development across Africa. This partnership promises to unlock the region’s potential and contribute to agricultural growth and employment in Limpopo.
Partnership to Expand South African Agricultural Footprint
The collaboration between Mahela, known for its leadership in citrus production, and ZZ2, a giant in avocado and tomato farming, strengthens an existing relationship that has seen both companies thrive in their respective fields. The Weipe project, known as Skutwater, will initially increase the orchard size from 190 hectares to 400 hectares. However, the long-term potential is even greater, with a planned expansion to 1,500 hectares. Furthermore, future growth opportunities are already being eyed, with plans to extend operations into neighbouring Mozambique, creating the potential for a regional agricultural powerhouse.
For the Mahela Group, the Skutwater project aligns with their vision of using innovative and efficient farming methods to boost production and sustainability while generating employment in rural areas. Barend Vorster, CEO of Mahela, expressed his optimism for the venture, stating: “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 for people from nearby communities.”
Job Creation and Economic Impact
The scale of the Skutwater project promises a significant impact on local employment, with an estimated 1,200 full-time jobs expected to be created once the development is complete. This will provide much-needed economic stimulation to the Weipe area and contribute to the broader Limpopo region’s agricultural sector, which is a key driver of South Africa’s rural economy.
The collaboration between Mahela, ZZ2, and AgDevCo is seen as a model for agricultural partnerships in South Africa, combining the expertise of the country’s largest citrus and avocado producers with the financial backing and developmental insight of AgDevCo. As a result, the project will not only enhance local production but also contribute to a more resilient and sustainable agricultural sector.
A Focus on Global Markets
South Africa is already a leading global exporter of citrus and avocados, with these products becoming increasingly popular due to their health benefits and versatility in international markets. The Skutwater project aims to meet growing global demand by producing high-quality fruit under favourable conditions in Weipe. The region’s climate, combined with advanced agronomic techniques, will allow for higher yields and access to international markets during early-season windows, giving South African producers a competitive edge.
Tommie van Zyl, CEO of ZZ2 Group, highlighted the importance of this opportunity, saying: “The partnership with the Mahela Group and AgDevCo enables ZZ2’s team to join forces with astute agriculturalists. We look forward not only to making a success of the operation at Weipe but also to explore other opportunities in Africa with our partners over time.”
With the demand for fresh produce, particularly avocados, rising rapidly, the partnership between Mahela, ZZ2, and AgDevCo comes at a strategic time. By positioning themselves at the forefront of avocado and citrus production, the companies are well-placed to meet both domestic and international demand, particularly in Europe and Asia, where these fruits are increasingly sought after.
Sustainable Practices at the Core
The Skutwater project is not just about increasing production; sustainability and innovation are at the heart of the development. Mahela and ZZ2 are renowned for their use of sophisticated farming techniques that minimise environmental impact while maximising productivity. The new project will integrate these methods, employing advanced irrigation systems and precision farming techniques that ensure efficient water use and reduced carbon emissions.
AgDevCo’s CEO, Daniel Hulls, emphasised the importance of these sustainable practices, stating: “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.”
Looking Ahead: A Model for African Agriculture
The Skutwater project represents more than just an expansion of farming operations in South Africa; it could serve as a blueprint for future agricultural developments across the African continent. With potential for regional expansion, including into Mozambique, the collaboration between Mahela, ZZ2, and AgDevCo could help drive sustainable agricultural practices in neighbouring countries, fostering regional economic development and food security.
As the global market for avocados and citrus continues to grow, South Africa’s agricultural sector is poised to capitalise on this trend. The Skutwater project, with its focus on innovation, sustainability, and job creation, is set to play a key role in shaping the future of agriculture in the region, making South Africa a key player in global fresh produce markets.
