Western Cape-based fruit farming company United Exports has signed a €14m loan deal with international lenders, which will be used to boost sustainable blueberry production in SA.
United Exports, which focuses on the export of a wide range of fruit including blueberries, grapes and pears, said the funding provided by global development institutions — the International Finance Corporation (IFC) and the Dutch entrepreneurial development bank (FMO) — would help expand its operations and create more than 1,300 direct and indirect jobs by 2030. The industry employs about 40,000 people and generates more than R1.2bn in export revenue annually.
It is labour intensive and employs three or four workers a hectare. A significant attribute of SA’s blueberry varieties is their versatility, enabling production in virtually any part of the country, so the government and industry can target high-unemployment areas for increased production, the berry association previously said.
Industry players say the blueberry sector also offers the highest wages in the fruit sector, ranging from 15% to 26% above the minimum wage.
United Exports said its expansion plans will also seek to boost women’s participation in management roles.
The loan will support the fruit logistics company’s strategy to adopt frost resistant blueberry varieties and expand its blueberry orchards to other areas, including to the Western Cape region.
About a third of the funding is solely dedicated to climate-smart agriculture practices and will help the company adopt drip irrigation systems and water meters, among other measures.
The IFC will also help the company develop training opportunities across all skill levels for new employees and provide capacity building to improve women’s participation in management roles.
Founder and executive chair of United Exports, Roger Horak, said the partnership with IFC and FMO will help boost exports, job creation and tackle gender inequality.
Pieternel Boogaard, the director of agribusinesses at FMO said the deal with United Exports aligns perfectly with the bank’s agri strategy to support sustainable growth with both climate change adaptation and development impact.
Adamou Labara, the IFC country manager for SA, said: “IFC’s long standing support for United Exports aligns with our strategy to help promote climate-smart agribusiness, create jobs and enhance women’s participation in management in SA.”
“This project will play a key role in helping to position South Africa as an emerging blueberry production hub,” Labara said.
The loan deal builds on the €30m in funding IFC, the Dutch entrepreneurial development bank and the Investment Fund for Developing Countries (IFU) provided to United Exports in 2018 to help the company create jobs and boost exports. IFC and the Dutch entrepreneurial development bank also each provided a €1.5m loan to support the company weather the effects of Covid-19.
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