Africa Grows

When SAEDF invested in Gili Greenworld Holdings in 2000, it gave the agribusiness the ability to thrive and grow by establishing a successful business model. Through this opportunity, previously unemployed local citizens are now able to own farm land and contribute to the nation’s harvest. In addition to receiving bonuses, those participating in the system are also paid dividends. Through SAEDF’s investment, Gili Greenworld Holdings, in turn, created wealth through equity.

In total, this SAEDF investment has helped to create 200 jobs forlocals, and created a farming system based on equitable land ownership. According to CEO Gil Arbol, “SAEDF’s patience and understanding of our company has helped us make a complete U-turn and come out of a normally ‘no go’ situation. Today I can honestly say we are on our original track due to SAEDF’s involvement.”

As a result of its success in the agribusiness industry, Gili Greenworld was also able to invest in the Goodhouse Paprika Project. This land reform project resulted in the harvesting of paprika to create a major export for South Africa. The spice is now sold and distributed to Europe, the United States, Mexico, the Far East and the Middle East.

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In 1999, the hospitals in the Western Cape of South Africa were facing severe overcrowding. Eerste River Medical Centre (ERMC), a SAEDF portfolio company, was there to help. With 60 available beds, the medical center helps alleviate overcrowding in the other local hospitals. This venture was designed to suit the medical needs of citizens who, unable to pay high medical fees, otherwise went without care. Located in a working class suburb in the Western Cape of South Africa, the ERMC offers secondary care in general medicine and surgery; obstetrics and gynecology; and pediatrics. In addition, ERMC employed 80 local community members at its peak.

SAEDF’s investment in this hospital resulted in an additional breakthrough – business ownership representative of the larger community’s demographic. Whereas the majority of private hospitals in South Africa are owned and operated by the white population, the ERMC is the first private hospital in this region that is owned by black citizens.

ERMC has successfully repaid its investment from SAEDF and has begun private operations – a clear sign of the project’s success and long-term sustainability. And as a result, the Eerste River Medical Centre was able to begin construction in 2009 on a new wing.

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Ambassador Andrew Young, Chairman of the Southern Africa Enterprise Development Fund, discussed how the SAEDF model could help in rebuilding Haiti. This column originally appeared on January 26, 2010, on The Huffington Post.

The Obama Administration is to be congratulated for immediately committing food, doctors, military assistance and $100 million in aid for the people of Haiti following their devastating earthquake. Our country’s swift response has been essential to saving lives and giving hope to the survivors. In the short term, grants have been the necessary form of assistance. But in the long run, another very useful tool the U.S. should consider is a Haitian Enterprise Fund, similar to the Southern Africa Enterprise Development Fund (SAEDF) or eastern European equivalents that have proven so effective for economic development and sustainable growth in developing countries.

Haiti needs assistance that will produce a sustainable economy, not just a relief economy. This horrible tragedy may present just the opportunity for Americans to put their resources to work in a way that will create long-term economic sustainability in a country bereft of stability.

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