CORPORATE GOVERNANCE AND MANAGEMENT

The custodian of Hortfin is the deciduous fruit industry, supported by the Jobs fund and Land Bank. The activities of Hortfin are governed by the board of directors1 supported by permanent personnel and contracted capacity.

Funding will be provided by Land Bank, Jobs Fund and the industries with the loan book being managed by the Land Bank. Participants in the broader fruit industry are expected to play an important role in identifying opportunities, forming joint ventures and generally providing support to the investee companies.

ELIGIBILITY CRITERIA

Applicants must comply with the following broad eligibility criteria:

• The application must relate to the deciduous fruit value chain within the pome, stone, table and wine grapes industries.
• Be able to create sustainable permanent and permanent seasonal jobs within the 3-year implementation period at an approximate cost of R300 000 per job.
• Be at least 51% black owned or reach at 51% black ownership within 3 years.
• Must be a “juristic person” in the form of a company, trust or cooperative.
• The business must have the ability to meet the repayment obligations.
• Must consent to appropriate post investment support which includes mentoring, capacity building, reporting, implementation of financial and admin systems and regular monitoring and evaluation audits.

FINANCE PRODUCTS

• Orchard establishment.
• Production Finance / Working Capital.
• Equipment and Movable Assets.
• Infrastructure.
• Equity investment to increase black ownership linked to expansion.

DIFFERENTIATION

• Hortfin is specifically for the deciduous fruit industry and will rely on industry bodies and local knowledge to assist with deal origination, the due diligence process, the investment decision and post investment support.
• The loan size will typically vary from R2.5 million to R35 million.
• Willingness to absorb relatively greater risk.
• Interest rates in the range of prime less 2% to prime plus 1% depending on the risk profile.
• Flexibility in structuring finance products with optimum matching of cash flows to repayments.
• Comprehensive post investment support regarding Financial, Technical and Management aspects.
• Encourages collaboration with other funders, commodity organisations and agribusinesses.