South Africa: New Black Empowerment export company launched
The new company, Rainbow Produce Company (Pty) Ltd, signals a major entry of BBE entrepreneurs and investors into the R15-billion South African fresh produce export marketing sector.
Initially Rainbow Produce will be supported by In2Fruit, itself a fairly new export marketer which has made strong inroads in the South African export sector during the past two years. In2Fruit will provide support services to Rainbow Produce Company. Once fully established, Rainbow Produce Company will have at least a 50% black shareholding.
Rainbow's first Managing Director, Enoch Ntala Ralehoko, has been appointed as from the 1 November 2014.
“Rainbow will have the full infrastructure backing of In2fruit at its disposal in order to secure the efficient running and managing of its export activities,” says In2Fruit’s Managing Director Sarel Joubert. “All back office functions will be performed by In2fruit. Where required, In2fruit will coordinate a mentorship program assisting with management and technical advice.”
Enoch Ntala Ralehoko, who holds a Masters’ Degree in Agricultural Administration from Stellenbosch University, says Rainbow will build its business on sustainability and creating confidence amongst BEE growers to choose the company as their preferred marketer. “The major reason why I am here is because this is something new for the South African fruit industry. It is true transformation and we must build sustainability for both BEE producers and the company.”
Mr Joubert says Rainbow Produce Company will be supported by In2fruit financially until it is self-efficient. “Rainbow and In2fruit will work closely together with investment institutions which will assist BEE producers with finance and financial management.”
Mr Ralehoko, who previously has been Manager of Marketing and Agribusiness of the Western Cape Department of Agriculture, says Rainbow's strategy is to deliver a niche customer experience to BEE growers. “We are uniquely positioned to deliver a one stop shop, offering a tailor-made marketing proposition to all our growers. Rainbow will focus on the marketing needs of BEE producers and is the producer's extension to the customer, which includes timeous delivery to preferred international customers where it will be able to achieve competitive and sustainable returns for its partners.”
Alec Abrahams, a BEE grape grower from the Hex River Valley, has welcomed the establishment of Rainbow Produce. Mr Abrahams says his company, Siyazama Klipland, is excited about being the first BEE table grape grower to join Rainbow Produce as a supplier. Siyazama Klipland is a BEE company with six shareholders of which 80% are women.
“We are extremely excited about what Rainbow Produce will mean to us. We know how important it is to have the support and mentorship of companies such as Rainbow Produce and In2Fruit. The fact that we have been successful grape growers for the past eight years is due to successful mentorship from one of our fellow Hex River producers,” says Alex.
Another Breede River Valley grape producer, Willow Creek is in the process of joining Rainbow Produce and will be followed by other BEE producers as the season progresses. Siyazama Klipland and Willow Creek is expected to contribute around 170 000 cartons of table grapes to Rainbow Produce this season, giving the company a very solid start in the grape export business.
For further information:
Enoch Ralehoko
Rainbow Produce
Tel: +27 021 874 1055,
Email: enoch@rainbowexport.co.za