South Africa’s AFGRI Group Holdings (AGH) is creating a commodity/grain storage platform to expand the country’s current storage capacity from some 4.7M tonnes to 6M tonnes in the near future.
“This will allow us to not only cater for grain storage, but to expand into the storage of other types of commodities,” said AGH CEO Chris Venter in a press release on 8 April.
AGH is an investment holding company with interests in food, agriculture and financial services, operating in 11 African countries as well as Western Australia. Through Philafrica Foods, it owns and operates maize mills, wheat mills, an oilseed crushing, extraction and refining plant, and animal feeds manufacturing plants.
Venter said the creation of the strategic storage platform vehicle, AFGRI Grain Silo Company Proprietary Limited (AFGRI Grain Silo Company), had been made in collaboration with a consortium of leading South African institutional investors to enable the growth of grain storage capacity in South Africa and on the continent, and to strengthen food security in the region.
AGH’s current 4.7M tonne storage footprint consisted of grain silos and bunker complexes throughout six provinces in South Africa.
“High-quality commodity storage and related services is in demand by our customers and, through the consortium, we aim to ensure that we enter new areas across South Africa and simultaneously grow capacity,” said Jacob de Villiers, managing director of AFGRI grain management.