CAPE TOWN – The European Union has committed €15 million (approximately R 311 million) to drive inclusive growth in South Africa’s wine sector, focusing on black ownership and enterprise development in an industry still working to overcome historical inequities.
The funding, made available through the European Union Wine and Spirits Fund, aims to unlock new business opportunities and support the development of black-owned brands, farms, education, and enterprises across the wine and spirits value chain.
“This EU funding is a major injection that will help accelerate momentum and scale impact where it’s most needed,” said Rico Basson, CEO of South Africa Wine, the industry body that welcomed the announcement.
The fund stems from the EU-SADC Economic Partnership Agreement, which provides tariff-free export benefits alongside financial support designed to transform and grow the local industry. The initiative specifically targets equitable access to land and infrastructure, education and training for farm workers, and comprehensive socioeconomic development interventions.
Management of the funds will be handled by the Department of Agriculture, Land Reform and Rural Development (DALRRD), working in partnership with the Land Bank, which will receive €10 million of the total amount, and the National Agricultural Marketing Council (NAMC).
According to officials, the Land Bank will focus on enterprise development financing, while NAMC will oversee marketing initiatives, skills development programs, and ethical support services.
“This support from the EU can help change lives,” said Ronald Ramabulana, Chairperson of South Africa Wine. “It’s an opportunity to open up the industry and back hard-working entrepreneurs who want to build sustainable wine businesses.”
The funding structure will combine grants with loans to encourage financial sustainability, with majority black-owned enterprises receiving priority. Special emphasis will be placed on supporting women, youth, and workers within the sector.
Applications for funding will open soon, with South Africa Wine pledging to work with stakeholders to ensure the financial support reaches projects where it can make the most significant difference.
Industry analysts note this initiative comes at a critical time for South Africa’s wine industry, which has faced challenges including drought, market volatility, and ongoing efforts to transform a sector that remains predominantly white-owned nearly three decades after the end of apartheid.
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