NEF fulfills dreams: Farm workers get 45% stake in wine estate gem

THE NEF understands the importance of ensuring that the structure of the South African economy is transformed to reflect the country’s demographics if the ideals of the National Development Plan to eliminate poverty and reduce inequality by 2030, are to be realised.

One of the most powerful levers for radical economic transformation, the NEF insists, is to promote interventions that benefit the most disadvantaged South Africans through the creation of new assets, capabilities and opportunities to build livelihoods.

To that end, the NEF has successfully facilitated a revolutionary deal which resulted in a substantial part of a 325-year-old Cape wine estate, known as Solms Delta Wine Estate situated in Franschhoek , Western Cape being given to farmworkers for ownership. The agreement is part of a wider plan by the NEF to secure permanent tenure for farm workers, and for them to have economic interests in the land they live on.

This ground-breaking empowerment deal was launched by Minister of Rural Development and Land Reform (DRDLR) Gugile Nkwinti in December 2016. The department bought an equity stake in the business and the land for farm workers as part of the “Strengthening the Relative Rights of People Working the Land” 50/50 policy in the province.

The farm workers as well as the farm dwellers through the formation of the Wijn de Caab Trust, share equal ownership together with established wine farmers Mark Solms (Zandvliet-Delta Farming (Pty) Ltd) and Richard Astor (Lubeck-Delta Ltd). With the farm workers now owning a bigger share of the farm (from 30% to 45%), there is a feel-good atmosphere about the Solms-Delta Wine Estate.

One of the beneficiaries identified as O’Ryan believes that Solms-Delta is a working example of what can be done to address the tragic past of farm workers and provide them with what will be a bright future. “In the past decade life was tough. I used to work as a security guard outside the farm and poverty abounded.” says O’Ryan.

Neuroscientist Professor Mark Solms bought the farm and partnered with neighbouring farm owner, Richard Astor. Together they put both thier farms as collateral for a loan to buy a neighbouring farm the workers – this creating Solms-Delta - and establishing a trust for them. “We get a third of everything and it is all manand by the trust. We decide what we want done. Houses were built for us, we get medical aid, schooling for our children, a crèche, DStv and we still earn a salary”, says O’Ryan.

Professor Solms said the project tries to overcome the historical imbalances of the apartheid legacy and improve the people’s quality of life. He says the fact that the farm workers have a stake in the business had positive results in terms of work relations, motivation and empowerment. “Our wine does better because it is made by people who care,” he said.