News

In a landmark step toward reshaping South Africa’s wine and spirits industry, the Land and Agricultural Development Bank of South Africa (Land Bank) has officially launched the Wine and Spirits Fund - a transformative initiative aimed at driving meaningful Black participation across the sector’s value chain.

This ambitious programme stems from the Financing Agreement (Agreement No. ZA/DCIAFS/040-854) between the European Commission and the Republic of South Africa and forms part of the broader Support Programme for the Transformation of the Wine and Spirits Sector in South Africa. The initiative is structured around two key components: transformation of the sector and expanded marketing and distribution into third-country markets outside of the European Union.

South Africa ranks seventh globally among wine-producing nations, with approximately 933.8 million litres produced in 2023 alone. The sector is a vital contributor to the national economy, generating roughly ZAR 56.5 billion in GDP. However, despite its global prominence, the industry has historically lacked inclusive participation.

The Wine and Spirits Fund addresses this gap directly. Land Bank will oversee the ZAR 195 million transformation component of the programme, while the National Agricultural Marketing Council (NAMC) will manage the ZAR 98 million allocated for marketing and distribution.

Land Bank will begin accepting applications for the Fund from 19 June 2025. Eligible enterprises—those that are Black-owned and managed and operate within the wine and spirits sector—can access support through either grants or equity contributions. Grant funding ranges from ZAR 500,000 to ZAR 3.5 million, while the equity contribution mechanism unlocks funding between ZAR 3.5 million and ZAR 10 million through a combination of Land Bank and partner financial institutions.

“South Africa is recognised as one of the leading countries in the production of wine, which is exported throughout the world,” said Themba Rikhotso, Chief Executive Officer of Land Bank. “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.”

European Union Ambassador to South Africa, Sandra Kramer, echoed these sentiments, stating: “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.”

The EU has contributed a EUR 10 million grant to the programme, underscoring its commitment to equity, sustainability, and economic empowerment in South Africa’s agricultural and export landscape.
For entrepreneurs in the wine and spirits industry, this Fund represents a significant opportunity to scale operations, access new markets, and reshape the future of South African wine and spirits—ensuring that the rich legacy of the sector reflects the diversity and potential of the nation.

Visit www.landbank.co.za for further information.