South Africa’s wine and spirits industry is entering a bold new chapter, thanks to the launch of a €15 million (approximately R300 million) EU-funded Wine and Spirits Fund, designed to support inclusive growth, transformation, and social sustainability across the sector.
Unveiled near Franschhoek in the Western Cape, the fund is part of the EU-SADC Economic Partnership Agreement, which already grants South African wine tariff-free access to the European market—up to 119 million litres annually. Now, this new financial backing aims to fast-track transformation and diversity in ownership, skills, and opportunity.
“This fund is not just about finance—it’s about changing lives,” said Themba Rikhotso, CEO of Land Bank. “It’s about uplifting communities and transforming the wine and spirits sector from the ground up.”
🤝 Who’s Managing the Fund?
The fund will be jointly administered through a collaboration involving:
- The Department of Agriculture
- Land Bank (enterprise financing)
- National Agricultural Marketing Council (NAMC) (skills, marketing, ethical trade)
A multi-stakeholder steering committee—including government, industry, and civil society representatives—will monitor performance and impact. South Africa Wine, a long-time driver of transformation in the industry, will work closely with these bodies to identify and refer qualifying projects.
đź’Ľ What Will the Fund Support?
The fund is designed to address long-standing inequalities in the wine sector, particularly in access to land, infrastructure, and market visibility. It will provide:
- Grants of R500,000 to R3.5 million for equipment and infrastructure
- Larger grants (R3.5 million–R10 million) for equity deals and land acquisition (requiring co-financing via loans)
- Up to R5 million ring-fenced for education and training
- Support for wellness initiatives, such as alcohol abuse prevention, foetal alcohol syndrome awareness, and worker wellness programs
“Beneficiaries will not walk this journey alone,” Rikhotso emphasized. “We’re building a network of support to ensure their long-term success.”
🌱 Changing the Landscape
Despite employing over 86,000 vineyard workers and supporting 107 black-owned wine brands and 81 black-owned farms, only 2,000 hectares of wine land in South Africa are currently black-owned. That’s something the fund aims to change.
“Our goal is to expand black-owned land by at least 500 hectares and to double the sales and marketing reach of black-owned wine brands,” said Rico Basson, CEO of South Africa Wine.
Basson stressed the importance of not repeating past mistakes:
“Planting a vineyard is not enough. Without the right support, it can become a poverty trap. This fund must help us leap forward—together.”
🌍 A Shared Vision
Garrido Ruiz, Deputy EU Ambassador to South Africa, echoed the sentiment at the launch, saying the EU was proud to support an initiative that would transform lives, unlock potential, and reshape the industry for the better.
