Balancing now and next: Progress of Hortgro Economic Development initiatives

The journey of economic development through industry-led support programmes continues to deliver meaningful impact toward building a more inclusive pome and stone fruit sector. The focus remains on leveraging incremental gains to meaningfully measure progress and long-term impact.

Progress highlights:

The Hortgro Skills Accelerator Programme, launched in mid-2024, continues to add value by strengthening the capabilities of first-generation producers and young professionals in agriculture. The programme, in partnership with the Jobs Fund, focuses on practical training, mentorship, business development, and youth employment internships.

Internships and Youth Development: Forty-two young graduates have been placed on farms for structured mentorship and workplace experience, with the majority already completing their placements. Creative partnerships and collaborations have enabled continued placements through both public and private sector support.

Tailored Capacity Building: All 27 participating farms have undergone in-depth needs assessments, and over 20 have received customised support in areas such as financial management, institutional and governance support, and production. The training model matches various industry experts with farms to address specific developmental priorities.

Business Support: New and emerging farm businesses are receiving hands-on guidance to improve planning, operations, and readiness. Business plans are being developed and aligned with funding opportunities.

Partnership Growth: The programme continues to expand its network of technical experts, mentors, and strategic partners to enhance the quality and reach of support provided.

Progress has also been made across a range of industry programmes and initiatives funded or supported in partnership with the Western Cape Department of Agriculture. These include the Orchard Establishment Project, the Comprehensive Agricultural Support Programme (CASP), the 50 Black Commercial Programme (BCP), and the Value Chain Financing Project (Hortfin).

In the 2024/25 cycle, 73% of CASP’s fruit-project funding was directed towards short-term production inputs, with 9% allocated to infrastructure (such as cold storage and packing facilities), and 3% to alternative energy solutions. Similarly, 70% of BCP funding was used to support businesses in financial distress, provide production inputs, and unlock other funding opportunities. In the context of Hortfin, of the total blended finance disbursed, only 21% was allocated to production finance, while a greater share of 35% was invested in orchard establishment, 27% in land purchases and refinancing, and 17% in movables such as vehicles and equipment.

When reviewing the funding support and its targets, it becomes clear that there is heavy reliance on input support. While this is critical for immediate productivity, directing the majority of funding toward this kind of investment does not add sufficient value to sustainability initiatives, such as scaling up through orchard expansion.

Long-term infrastructure investments—such as orchard establishment, bulk infrastructure and systems, and climate-resilient technologies—are crucial for anchoring producers in competitive, export-oriented value chains. This requires a strategic approach that balances investment financing support for long-term productive assets, which drive sustained economic activity, resilience, and job creation, with short-term production investments. Projects such as the Orchard Establishment Initiative highlight the impact of long-term investment and require substantial financial resources to scale and sustain. To date, over 1,490 hectares have been established and/or replanted.

Looking ahead, industry stakeholders, funders, and government partners have an opportunity to collaborate more intentionally on a balanced approach to funding. While input support remains essential and should be made more affordable, it needs to be paired with investments in infrastructure and orchard development that deliver lasting, compounding benefits. Revisiting current funding frameworks will be key to ensuring that economic development efforts provide both immediate relief and long-term, sustainable growth.

As we work together on incremental gains in the fruit sector, it is critical that every rand spent contributes not just to survival but to sustainable success.