Twelve friends taste the fruits of success

Just outside of Thohoyandou, in the heartland of Limpopo, is a factory built on the dreams of a group of humble friends and their vision for a brighter future. The 12 members of Thohoyandou Cooperative are the proud producers of Nduu Food Peanut Butter, a business founded with the help of the government, established through the hard work of its members and growing thanks to a partnership with the De Beers Zimele Venetia Business Hub. 

The story began with an announcement over the local radio, inviting unemployed community members to attend a presentation on cooperatives. General manager and cooperative member Nelson Khuluvhe tells how he was energized by the idea of creating a job for himself. He partnered with similar-minded individuals from different villages who each contributed financially and attended training funded by the Department of Economic Development before officially establishing their cooperative. They began with a variety of products, including jam and fruit juice, but soon identified peanut butter as having the most potential for growth and a market that was relatively easy to penetrate.

After deciding to focus their energies purely on peanut butter, Thohoyandou Cooperative received funding from the Department of Local Economic Development, Environment and Tourism (LEDET) to purchase industrial equipment that allowed them to procure peanuts from local farmers in Mokopane and produce their own high-quality, smooth peanut butter, free from harmful preservatives, excess sugar and salt. This gave their business sustainability and secured the jobs of 12 permanent employees.

A few months later, the members identified an opportunity to expand their market significantly, but budgetary constraints held them back. Despite their being historically disadvantaged, many financial institutions rejected their request for a loan because of their lack of available security. Those who approved their request offered them an interest rate of between 25% and 30%. It was at this point that they approached the De Beers Zimele Venetia Business Hub. This is a project funded by De Beers and is dedicated to the development and growth of small- to medium-sized businesses located near their mining operations. Here, their loan request for R220 000 was approved at an interest rate of only 6%. The loan allowed them to expand their client base and prevent shortages and a lack of supply. Furthermore, it created an additional four jobs and financed packaging and raw materials, which allowed the cooperative to qualify for significant discounts with their suppliers.

“It is great when a mining company makes sure that their communities benefit from their work. We are enjoying the benefits of having De Beers in our community, and we are grateful for their vision for development in Limpopo,” says Nelson.

“Once tasted, never wasted” is the official slogan for their peanut butter, which seems fitting since this cooperative has tasted the sweet success that entrepreneurship can bring and they will not waste an opportunity to expand.

Date:20 February 2015

By: News Correspondent

Correspondent journalists from all over the region supply us with news and sport articles. 

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