Tapping into SA’s growing hemp market

Fedgroup, a leading Impact Farming House, has recently expanded its suite of sustainable investment products by adding hemp as one of its latest offerings. The company has ring-fenced approximately 9,100 units of hemp for investors, allowing them to invest 4,000 rand in a unit with a projected return of 12 to 14% over a three-year period. Aside from hemp, Fedgroup also provides investment opportunities in other impact farming products such as blueberry bushes, lettuce stacks, beehives, and macadamia trees through its platform. Warren Winchester, the General Manager of Ventures at Fedgroup, recently discussed the new hemp investment option on CNBC Africa. One of the key themes highlighted in the interview was the surging global demand for hemp as a multifaceted product. Winchester emphasized that hemp farming aligns with the principles of people, planet, and profit, making it an attractive investment avenue for both Fedgroup and its investors. The company's approach to impact farming involves empowering farmers and communities while generating returns for investors. The conversation delved into the mechanics of investing in hemp through Fedgroup's Impact Farming app. Investors can download the app, purchase units of the available hemp stock, and receive returns based on their investment over a three-year period. Winchester revealed that since the launch of the hemp investment option, Fedgroup has already sold close to 1,500 units, showcasing significant interest from investors. Furthermore, Winchester elaborated on how the funds raised from investors are channeled back into the farms to fuel operations, create jobs, and drive expansion. By committing the full 9.1 million rand towards the farm operations, Fedgroup aims to scale up production, increase employment opportunities, and positively impact the surrounding communities. In terms of partnerships with hemp farmers, Fedgroup currently collaborates with one partner in the industry while exploring opportunities with other farmers. Winchester noted the substantial interest from farmers looking to capitalize on South Africa's conducive agricultural conditions for hemp cultivation. The majority of the hemp produce is exported to European and American markets, offering lucrative profit potential for farmers involved. Aside from hemp, Fedgroup's other impact farming offerings like blueberry bushes, lettuce stacks, beehives, and more have gained significant traction since their launch. The demand for these investment products has been on the rise, with returns surpassing initial expectations, indicating the success of Fedgroup's sustainable investment approach. When questioned about the projected 12 to 14% returns on the hemp investment and associated risks, Winchester highlighted the risk-mitigation strategies implemented by Fedgroup. While returns are not guaranteed, the company employs technology, monitoring systems, and farmer collaboration to minimize risks and maximize returns for investors. In conclusion, Fedgroup's venture into the hemp market through impact farming investments signifies a strategic move towards sustainable and socially responsible investing. The company's commitment to empowering farmers, promoting environmental sustainability, and providing attractive returns to investors positions it as a key player in the evolving landscape of impact investing.