Media

Ethanol deal to assist emerging farmers

Business Day

Thur, 22 February 2007

ETHANOL Africa, a biofuel firm based in Bothaville, had concluded an empowerment deal with a consortium led by Valli Moosa’s Lereko Holdings, the company said yesterday.

The Ethanol Africa BEE Consortium consists of Lereko Investments (37,5%), Mvelaphanda Holdings (10%), a Free State empowerment grouping (27,5%) and women’s groupings (25%).

“We support government’s policy on the development of biofuels in SA and our involvement with Ethanol Africa is a practical step as far as Asgi-SA (the Accelerated and Shared Growth Initiative for SA) is concerned,” said consortium chairman Moosa.

He said the project would also play a leading role in job creation in rural areas. Ethanol Africa CEO Johan Hoffman said the company now complied with the liquid fuels industry charter, and yesterday’s announcement was the first step towards the broadening of black ownership in the company.

“It also allows the company the opportunity of access to the top tiers of black business in SA,” Hoffman said.

The company said it was committed to the country and the African continent and that the announced empowerment deal illustrated its commitment to benefit all sectors.

Hoffman said Ethanol Africa’s emerging farmer project would improve the economic stability of the Free State’s rural areas.

The company said these farmers would be supported by Ethanol Africa’s maize procurement division through comprehensive agronomic services, crop management and co-operative sourcing.

The emerging farmer model allows farmers to plant with a guaranteed off-take at a fixed price.

“This assures that small-scale farming is viable and sustainable,” the company said. In the long term, the company wanted at least 30% of its maize supplied by emerging farmers. Sapa

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