NEF raises black players in fast moving consumer goods sector

THE NEF is pulling all stops to ensure that black entrepreneurs and black-owned enterprises have a strong integrated and cross functional presence in South Africa’s lucrative fast moving consumer goods (FMCG) industry.

The NEF has positioned itself as the leading agency in ensuring inclusivity in this high volume business sector which has real potential to be the ‘game changer’ in South Africa’s quest to ignite growth and create jobs.

FMCG or consumer packaged goods are products that are sold quickly and relatively at low cost. They contrast with durable goods such as kitchen appliances which are generally replaced over a period of several years.

The NEF has invested R14 million to assist a 100% black owned investment company known as Subrofusion Pty Ltd to acquire Golden Dice Foods which started out as a small concern in Ekurhuleni for packaging dry farm products and has over the years grown in range to owning storage silos used for raw materials.

Golden Dice Foods was founded by the Wehmeyer brothers Johan and James 30 years ago and specialises in the milling and manufacturing of maize and mabele (sorghum) products, as well as the packaging and distribution of dry agricultural products such as sugar.

Subrofusion Pty Ltd, which has created 58 permanent jobs 60% of which are held by women, wants to build a reputable quality brand and products in the fast moving consumer goods sector.

The new NEF funded owners have a wealth of operational and leadership experience accumulated in various positions, including, in Standard Bank, SAB, PepsiCo Phillip Marris International, Colgate and Palmolive. Their vision is to build success by harnessing their joint extensive experience and skill towards building an excellent black owned business in the FMCG sector.

The company boasts a diverse list of clients that include Massmart, OK Foods and Metro.

“As the NEF, we saw an opportunity to invest in a 100% black owned entity that would create employment and develop a black owned enterprise in the FMCG sector. It keeps up to date with technological advancements and innovation for quality,” says Setlakane Molepo Divisional Executive for SME and Rural Development at the NEF.

GDF aims to sustain current and also cultivate new consumers and grow market. “We aim to sustain and maintain our competitive position in the market, as we grow our product offering into other provinces nationally,” a company spokesperson said.