South African fruit, food and wine exporter Afrifresh Holdings (Pty) Limited has teamed up with Vuwa Investments (Pty) Limited to announce a multi-million empowerment transaction in Cape Town.

A new operating company, Afrifresh Group (Pty) Limited, has acquired all of Afrifresh’s existing South African operations and business interests, while Vuwa has purchased a 30 per cent stake in the newly formed group. Vuwa, led by Johannesburg-based businessman Bulelani Ngcuka, also has dairy farming interests in the Eastern Cape.

Roy Fine, Afrifresh’s development director, described the deal as a rare commitment to black economic empowerment in the primary agriculture and fruit export sector. Fine said the deal with Vuwa was closely aligned with the group's existing growth plan. “I believe Vuwa will play a key strategic role in helping the Afrifresh Group to contribute positively to agriculture business development in Southern Africa,” said Fine.

Lance Chandler, Afrifresh Group executive, described the conclusion of the transaction as a positive step forward for the fruit industry in South Africa.

Dumisani Tabata, the new group’s chairman, who will be joined by Lungisa Dyosi and Sipho Ngewma on the board, expressed Vuwa’s commitment to the company’s business development. “The Afrifresh Group will now be well placed to assist growers and the agricultural transformation process,” he said.

Ceo Chris Conradie said the transaction would enable the group to contribute progressively in the land transformation process. “Vuwa’s strategic involvement will bring considerable opportunities to the Afrifresh Group, and will help grow its existing volumes, as well as its access to international markets,” he said.

A statement from the Afrifresh Group says Vuwa’s investment in one of South Africa’s top five fruit exporters makes Vuwa one of the largest broad-based black economic empowerment companies involved in the agricultural sector. “It comes at a time when the demand for agricultural products is showing incredible growth and record price increases are reported globally,” said the firm.

Since its establishment in June 2006, Vuwa has shown significant growth and has recently also concluded major deals with two listed companies - the hotel group City Lodge and Buildmax.

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