Major boost for SA grain storage with new Afgri investment unit

JOHANNESBURG — Despite a tough economy and the political uncertainty of land reform hanging over South Africa's agricultural sector, Afgri South Africa, with the help of Rand Merchant Bank (RMB), has managed to get a group of investors together to create a new silo investment unit. In a bold new deal, the new strategic storage platform, dubbed 'Afgri Grain Silo Company', has been created to acquire 100% of Afgri’s South African portfolio of owned grain silo and bunker facilities, representing 25% of South Africa’s grain storage capacity. The deal is expected to dramatically increase the unit's capacity for storage while also boosting food security in the region. In this interview, David Jones, who specialises in infrastructure finance at Rand Merchant Bank, tells us more about his bank's role in the deal and its significance to the local agricultural sector. - Gareth van Zyl