How to start a business in South Africa with R300

 ·28 Aug 2018

Financial services provider, FedGroup, says that with the use of technology (namely an app) and startup capital of R300, you can start a sideline business in South Africa.

“Those with an entrepreneurial spirit can expand their revenue streams and kick-start a side hustle by investing in Fedgroup’s Impact Farming,” the group said.

This crowd-farming initiative enables the asset owners to generate income from selected agricultural products and renewable energy.

How it works

Impact Farming enables investors to generate an income by owning assets in various farming ventures. Currently, the choice of assets consists of blueberry bushes, beehives where sustainable honey is produced, and urban solar farms that generate electricity.

“A regular income based on the production of these assets can then be earned,” FedGroup said.

To start with, entrepreneurs need to download the FedGroup app, select the asset or mix of assets they wish to invest in and can start by making a purchase for as little as R300.

The complete insurance and maintenance, as well as the harvest and sale of the produce are all included in the purchase price, it said.

“We are excited to bring this ground-breaking innovation to South Africa. We believe that Impact Farming will create additional revenue streams for our asset owners and play a meaningful role in the growth of the agricultural and renewable energy sector.

“The beauty of this app, which is the first of its kind in South Africa, is that it can be used to generate extra income while keeping your day job and allow those who want to diversify their investment portfolio a platform to do so,” said FedGroup CEO, Grant Field.

Asset owners can expect increased returns over time, in line with inflation or energy price increases, FedGroup said.

In the case of blueberries and beehives, there is also an increase as the bush or colony matures. Solar panel owners earn an income every month, while blueberry and beehive owners are paid twice a year, after the harvest seasons.

To build on this offering, FedGroup said it is considering adding new agricultural products in the future, and creating a secondary market where investors can trade their assets.

“The agricultural sector is also facing a myriad of challenges, including but not limited to the ageing population of experienced, commercial farmers. Impact Farming incubates a new generation of farmers who contribute towards food and sustainable energy production,” FedGroup said.

Read: How you can make money from solar panels in South Africa

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