Bana Ba Mphela Co-Operative
| Business Location: | Rural area - Farms |
| Province | Limpopo |
| Branch: | Waterberg |
| Business Start Date: | |
| Busniess Type: | Co-operative |
Business Dynamics and Challenges
Business Activities:
Bana Ba Mphela, an Agricultural Cooperative registered in 2014 through the foresight and vision of its founders and directors is 100% black owned of which 80% is women. The entity was established by seven local unemployed youth members who form part of Ga-Phadi CPA, beneficiaries of land distribution for agricultural development. The leadership of the CPA encourages groups to start different business entities which will see community members empowering themselves through entrepreneurship and job creation.
Bana Ba Mphela were allocated twenty hectares of land on portion six of number 542 Haakdoorn bult farm in Thabazimbi. They decided to venture into agriculture as it can create more jobs for members and other community members. They initially thought of animal farming, but after extensive research they realized that venturing into essential oils industry may be beneficial as it proved to be profitable and yield better returns. Essential oils are natural mixture of agronomic compounds in plants that are extracted by steam or solvent distillation. With better understanding of essential oils uses and benefits the group opted to start the production of rose geranium, the compounds of which are used largely by the flavour and fragrance industries. The business also farms cash crops and sell to various markets in the country; the long-term plan is to also plant and process rosemary to make rosemary oil.
Challenges/Needs:
Mr Kagiso Mphela visited a Seda office needing assistance to grow their business. He needed assistance with business development services. Through Seda’s assessment of the business, the following development aspects were identified:
• Insufficient knowledge in Export markets
• Need for an investment to recapitalise the business and for expansion.
Intervention Insights and Results
Intervention Details:
The client was enrolled in a 2-day intensive Export Awareness training.
• The business was assisted with Cooperative Development Support Programme funding.
• The business was assisted with Cooperative Development Support Programme funding.
Outcome Details:
• Export Awareness training improved the knowledge of the entrepreneur and confidence to secure more business from international markets
• Annual turnover has increased from R587 821 to R2 753 000, 468% growth
• The business has since created 23 more jobs.
• The business received a grant of R764 197 through the Cooperative Development Support Programme.
• Annual turnover has increased from R587 821 to R2 753 000, 468% growth
• The business has since created 23 more jobs.
• The business received a grant of R764 197 through the Cooperative Development Support Programme.
Client Feedback
Client Comments:
“Seda has really being there for our business and our growth is due to their continues support”.
