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Brussels Briefing 48: Nono Dimakatso Sekhoto "Opportunities for young entrepreneurs in serving urban or semi-urban markets"


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The Brussels Development Briefing no. 48 on “Strengthening rural livelihoods in the face of rapid urbanisation in Africa” took place on 20th March 2017 from 14:00 to 18:00, at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels, Room C). This Briefing was co-organised by CTA, BMZ/GIZ, the ACP Secretariat, European Commission (DG DEVCO) and Concord

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Brussels Briefing 48: Nono Dimakatso Sekhoto "Opportunities for young entrepreneurs in serving urban or semi-urban markets"

  1. 1. BrusselsPolicyBriefing: Creating Opportunitiesfor rural youthin transformingfoodsystem Opportunitiesforyoungentrepreneursinservingurbanorsemi-urbanmarkets By Dimakatso Sekhoto (Nono) Director March 2017
  2. 2. Sub-Saharan Africa’s youth population is increasing, with the 15- to 24-year-old age group at 200 million, a figure that is expected to double by 2045, according to population experts. But agriculture could potentially provide enough food and jobs. AfricaRenewel Magazine “Denting youth unemployment through agriculture” NEPAD, the African Union’s development agency, calls youth unemployment a “time bomb.”
  3. 3. Nono Sekhoto • Background: 7 year career in financial services industry • 2011 Joined my father at our commercial farm (2,100 ha) in Free State: experience in dairy, apples, beef, sheep, plant maize and sunflower • Scholarship in business course: and Agricultural Enterprise Management Certificate • Rural and Agricultural Finance, Training course at Frankfurt School of Finance and Management Exploring the Agricultural Sector • Established GrowthShoot: focused on empowering youth in agriculture • African Farmers Association of SA (AFASA), NEC member youth coordinator • Presidential Youth Working Group, Representing agriculture • Featured on BBC Focus Africa, radios, newspapers, • Connecting with young farmer in SA on Facebook Group, 850 members Makolobane Farmers Enterprises, Senekal, RSA
  4. 4. Exploring the Agricultural Sector Oklahoma State University Fellows, US Professional Fellows Congress, DC Makolobane’s Farmers Day with MEC of Agriculture FS DAFF Minister and Deputy, Pta TEDxWomen Speaker, Pta Keynote Speaker at GCARD3 BBC Africa Focus Presidential Youth Working Group, Pta With Minister of Agriculture Rwanda & SACAU President, Durban
  5. 5. Opportunities in South Africa Current issues: • Unemployment rate as high as 25%, youth unemployment almost 40% - black population being the most affected • High poverty in rural areas • Massive inequalities and huge disparity between the rich and poor (black population dominant in the poor communities) Solutions by the Government to fast track participation of black population in the economy National Development Plan • Aims to increase productivity in the country thereby increasing job opportunities • Agriculture identified as one of the sectors can produce high level of new jobs • Bias to develop women and youth Black Economic Empowerment Policy • Forces established large businesses to score points if they help to development SME: skills development, supplier chain inclusion, provide soft loan / grants, mentorships etc. • In agriculture – his is directed at developing smallholder farmers to be integrated into the supplier chain (Enterprise & Supplier Development) • Higher points scored for developing black women and black youth (the most affected)
  6. 6. Opportunities in South Africa Solutions by the Government to fast track participation of black population in the economy (Focus on agriculture) Land Reform and Land Claims Policy • Aims to provide access to land to previously displaced and previously disadvantaged communities • Government buys up land (mostly farm land) and distributes to the black population Resultant issues from land transfers • Working farms transferred to unskilled black individuals and communities • Poorly managed farms leading to wasted potential • Inappropriate or insufficient farmer support for new farmers • Large number of productive farms becoming vacant • Large number of new farmers are incapable of participating in the sector meaningfully My identified opportunity: • Large number of youth who live on such farms, interested to remain and work on these farms but have very limited access to farmer support
  7. 7. Understanding the Young Smallholder Farmer in SA Needs Wants Attitude Capabilities Income To be self reliant Eager to learn Limited skills Basic services Successful Hopeful / Positive Hard working Farmer support Help family Willing to accept help Literate & tech savvy Challenges Have access to Access to skills Access to markets Arable land (10 to +1000 ha) Water Access to finance Collaborations Registered business Mobile Communication Access to mechanization Work vs Home Labour Internet
  8. 8. Connecting with Young Farmers
  9. 9. Objectives of the model • Identify commodity and relevant stakeholders with respect to commodity • Create a programme centered around the commodity • Create ecosystem around the commodity with stakeholders support to provide access to: finance, market, training, shared capacity, mentorship and on-going support • Identify young farmers to participate in the programme • Ongoing monitoring of the programme Linking Rural to Urban – Linking Young Farmers to Opportunities
  10. 10. GrowthShoot - Aggregator Model
  11. 11. GrowthShoot Partners for the Rabbit Farming Project Access to Market (Export) Access to Finance Technical Skills Business Support Services Shared Inputs, Infrastructure & Logistics costs Access to Land Exposure to Farmers A.T. Kearney Management Consulting
  12. 12. Young Farmers Potato Planting Project Access to Market (Export) & Logistics Finance & Insurance Technical Skills & Mentorship Business Support Services Shared Inputs, & Logistics costs Infrastructure Equipment Exposure to Farmers
  13. 13. Standard Bank – Young Farmers Support
  14. 14. Conclusion - Established businesses have a major role to play - Immediate intervention required for young farmers to participate meaningfully - Innovative ideas will most likely come from the youth – so listen! - Looking to partner up with Investors, established farmers and agri-businesses AFASA Youth, at AFGRI Head Office John Deere Head Office AFASA NEC Thank you