The Economic Partnership Agreement (EPA) between the Southern African Development Community (SADC) and the European Union (EU), which was first implemented in 2016, continues to offer significant advantages to South Africa’s wine industry. By reducing tariffs and improving access to the EU market, the EPA has enabled South Africa to expand its wine exports, with a projected 119 million litres of wine set for export to the EU in 2024. Of this, 70% will be packaged, and 30% will be bulk wine.
A key development under this agreement is launching a €10 million EU-supported fund in October 2024, specifically empowering black-owned wine and spirits brands. Backed by the Land Bank, the initiative seeks to drive economic transformation in the wine and spirits sectors, offering grant and equity financing to new entrants. The fund will particularly promote inclusivity by providing financial support to black entrepreneurs, including women, and helping them expand their footprint in the competitive global market.
At the Food For Mzansi brunch conversation series at Nampo Cape, Paballo Vilakazi, fund manager for strategic funds at Land Bank, elaborated on the upcoming initiative. She emphasised the fund’s dual approach of providing grant and equity financing, intended to give black entrants the capital needed to succeed in the industry. The initiative aligns with broader efforts to diversify ownership and drive inclusive growth within South Africa’s wine sector.
Phil Bowes, manager of industry transformation advisory at South Africa Wine, underscored the critical role that financial support plays in transforming the industry. He noted that this fund could help overcome the economic barriers that often hinder emerging black-owned wine businesses from achieving long-term viability. “Financial viability is the cornerstone for success, and the grant funding provided by this programme is exactly what many new entrants need to thrive,” Bowes said.
This initiative, in collaboration with South Africa Wine, the National Agricultural Marketing Council, and the EU, is vital for the industry. Having been in the works since 2019, the fund is seen as a game-changer that could further elevate South Africa’s wine sector and expand its global influence by empowering a new generation of black entrepreneurs.
With funding applications set to open in October, the industry is gearing up for a transformative period of growth, inclusivity, and increased opportunities. The SADC-EU partnership continues to drive positive change, enabling South African wine to remain competitive globally while promoting a more inclusive future for the industry.
