New partnerships set to expand Skutwater farming operations in South Africa

SOUTH AFRICA – Mahela Group, ZZ2, and AgDevCo are joining forces to expand their Skutwater farming operations aimed at increasing the scale of their orchard operations and create numerous job opportunities in South Africa.

The Skutwater project will expand the current orchard area from 190 hectares to 400 hectares in its initial phase. Plans are in place to further increase this to 1,500 hectares in the second phase.

The project is also set to explore expansion opportunities in neighboring countries, including Mozambique. Upon completion, Skutwater is expected to provide over 1,200 full-time jobs.

Barend Vorster, CEO of Mahela Group, emphasized the potential of the partnership. “We believe that, with trusted partners such as ZZ2 and AgDevCo, we will be able to explore exciting opportunities in the global market. The Skutwater project will contribute to agricultural development and create many new jobs for people in nearby communities,” Vorster said.

The global market for citrus and avocados remains strong. With the sophisticated and sustainable farming practices at Skutwater, the project aims to meet the high standards required for international markets and achieve high-quality fruit yields.

Tommie van Zyl, CEO of ZZ2, shared his enthusiasm for the partnership. “The collaboration with Mahela Group and AgDevCo allows us to work with experienced agriculturalists. We are excited about making the Weipe operation a success and exploring further opportunities in Africa,” van Zyl stated.

AgDevCo’s CEO, Daniel Hulls, highlighted the significance of the partnership. “We are pleased to collaborate with ZZ2 and Mahela Group on this project. We are impressed by their farming capabilities and business ethics and are eager to learn from them and explore more opportunities across Africa,” Hulls said.

Mahela Group is known for its large-scale citrus production and diversified portfolio, including avocados, bananas, macadamia nuts, litchis, and kiwis.

The company focuses on environmentally sustainable practices. Meanwhile, ZZ2 is renowned for its extensive tomato production and export-quality avocados and deciduous fruits, as well as Medjool dates, cherries, almonds, and onions. ZZ2 aims to produce differentiated agricultural products while optimizing resources and farming sustainably.

AgDevCo, an investor in African agriculture, manages USD 280 million and supports agribusinesses in growing, creating jobs, and linking farmers to markets.

As of the end of 2023, AgDevCo had invested USD 178 million in more than 30 projects across nine sub-Saharan countries, with a focus on sustainability and regenerative solutions.