African Seeds Group acquisition of majority stake

by Sakhumnotho a huge deal for emerging farmers

05 May 2022

Cape Town, February 2022: African Seeds Group (ASG) firmly entrenched its position as the leading seeds supplier to the South African institutional and emerging farming sectors, through an investment by Sakhumnotho Group Holdings (Proprietary) Limited, a world-class Pan-African investment holding company, the group announced today.

This transaction in terms of which Sakhumnotho acquires a 51% shareholding in ASG, propelled ASG to Level 2 B-BBEE supplier status enables ASG to expand its ability to participate directly in government and other institutional procurement processes, while at the same time enhancing ASG’s ability to serve the more than one million strong emerging farming market in South Africa.

Agriculture, especially the emerging farming community is a key partner in tackling the critical issues of food security and unemployment in South Africa. This segment is often overlooked by the large agricultural companies resulting in high barriers to entry in terms of sourcing of products, access to education and training and ongoing development opportunities.

Says Mihan Louw, CEO of ASG: “We are passionate about the future of agriculture in South Africa. Since 2018, African Seeds Group has been on a journey to provide the best possible vegetable and agronomy seeds, chemicals, fertilisers, and other inputs to the emerging farmer. We provide these farmers with the same level and quality of inputs and knowledge that are available to commercial farmers. We believe that through this access emerging farmers will be empowered to grow their output and their farms into successful businesses that positively contribute to their communities.”

The acquisition is in line with Sakhumnotho’s focus on investment in the agricultural sector, further enhancing the group’s ability to deliver on their mandate of unlocking Africa’s full potential, says Professor Sipho Mseleku, CEO of Sakhumnotho. “We are excited to partner with ASG as well as the broader Zaad Group. We believe that Africa’s full agricultural potential remains untapped and recognise that the sector requires significant investment to unlock this potential. This deal further deepens our involvement in the agricultural sector and allows us to play a greater part in the sector’s future,” Mseleku concludes.


About African Seeds Group

African Seeds Group (ASG) was established in 2018 when holding company Zaad, which invests in the specialised agri-inputs industry where they currently own, develop, import and distribute a broad range of agronomy, forage and vegetable seeds into mainly Africa, Europe and other emerging international markets. Other Zaad brands include Agricol, Bakker Brothers, May Seed, Hygrotech and FarmAg. Zaad realised the importance of having a company that can specifically focus on the emerging farmer market in South Africa. This segment of the market, which is often overlooked by traditional seed and agri-input providers, has grown significantly in recent years.

Today, three years later, ASG has established itself as a standalone brand and business with a successful track record of servicing the emerging and commercial farmers as well as government with their agri-input need.

ASG sources high-quality products from a wide network of internal (Zaad Group) and external partners and distributes to customers and end-users from their packing facility in Johannesburg. Their wide-ranging customer base includes public and private entities, wholesale customers and NGOs.

About Sakhumnotho Group

Sakhumnotho Group Holdings (Proprietary) Limited is a family-owned and managed investment holding company. The group was founded in 2000 by a group of black professionals with experience and expertise in financial and legal services, merchant and investment banking. Sakhumnotho, which is primarily an equity investor in predetermined sectors of the economy, invests in well-run businesses with an experienced and knowledgeable management team and successful track record.

The group focuses on the advancement of historically disadvantaged individuals through its philanthropic work and impact projects in collaboration with its strategic partners – the Global Business Roundtable, Global Fund for Jesus, and the Fohloza and Sakhumnotho Foundations – to ensure they not only transform balance sheets but also communities.

Sakhumnotho is a permanent capital vehicle (PCV) investment entity, which typically invests in longer-term growth strategies without undue exit requirements. They are impact investors with ESG factors at the heart of their investment decision-making.

The group is led by Professor Sipho Mseleku, the current President and CEO.

For further information, please contact: Mihan Louw