If you have been following my blog for a while, you know how much I love African business opportunities that do not follow the norm, yet that have immense potential.
Wine making is definitely one of them!
With Africa’s economic growth come new consumer habits and wine is becoming increasingly popular on the continent – but here it is: although more entrepreneurs are making inroads in fine wine making, the industry is still in its infancy outside South Africa and this is exactly where you can come in.
So today, I want to give you a quick overlook of some of the countries that have an ideal climate and locations with the necessary elevation (hills and mountains) to start your wine making business. And then I want to leave you with a very inspiring story of struggle, determination, and success of a black South African wine maker family who made their dream come true against all odds.
South Africa is the seventh largest wine producer globally and produces 4% of the world’s wine. Close to 52% of the country’s natural wine is exported and 48% is sold locally. South Africa’s wine trade contributes to over $2.4 billion to the country’s economy with exports still increasing, according to the South African Wine Industry Information and Systems.
In the meanwhile, other African nations still have a long way to go in order to be competitive in the global market and to produce wine at the level and quality of South Africa.
Having said that, some wine making is taking place in other African markets, let’s have a look (source CNN):
Charlevale (Zimbabwe)
Nestled in a plush Zimbabwean valley on the Nyamasanga River, the Bushman Rock Estate is one of the country’s most prominent vineyards, producing a range of fine wines. A local wine maker said: “Whilst great wines are being made from Zimbabwean vineyards, some of which have received awards in international competitions, there is still room for growth in both quality and quantity.” A classic red Bordeaux locally costs $25.
Leleshwa Sauvignon Blanc (Kenya)
A light and tropical blend with a summery aroma, the Leleshwa Sauvignon Blanc is the Rift Valley Winery’s flagship vintage. The wine is produced high up in Kenya’s Rift Valley, thousands of meters above sea level, and is owned by the Kenya Nut Company
Emma Nderitu, a spokesman for the winery, said: Leleshwa is “unique in the sense that it is thought impossible to grow vines in this region. More than that it is thought that it can’t be a good quality wine.” But she added that the winery does not have enough volume to export to European and U.S. markets yet: “We are currently intensively expanding our vineyards to cover 250 hectares … we have received requests to export here but we are still at our expansion phase.” A Leleshwa Sauvignon Blanc retails in local supermarkets for about $6 and the brand’s red wine for $7.
Dodoma wine (Tanzania)
Tanzania’s Dodoma region produces three wines — dry white, red and “natural sweet.” Madawili added that the dry earth and sandy soil, combined with low humidity, is perfect for producing dry white and red wines in Dodoma.
Tej (Ethiopia)
For something very different, but very traditional, Tej is an East African honey wine, primarily consumed in Ethiopia. The white wine, which can be either sweet or dry depending on the amount of honey used, also includes Gesho, which is a buckthorn shrub native to the Horn of Africa nation. Harry Kloman, an expert on Tej and Ethiopian cuisine, said that there are very few, if any, wineries that produce Tej as the wine tends to be homemade or served in a “Tej Bet,” a bar that specializes in the wine. Sales of Tej wine are increasing internationally as social media and international wine competitions raise awareness of alternative and traditional African wines. Having said that, Ethiopia has climates with ideal locations for common wines, too.
Other wine-making destinations, are Zambia, Tunisia, Uganda, Rwanda among others
A Story of an African wine maker
By Susan Muumbi (source allafrica.com)
M’hudi is the first wine farm to be owned and managed by a black family in South Africa. It is situated in Stellenbosch, in the scenic Cape Winelands, and is wholly owned and managed by the Rangaka family.
Malmsey Rangaka is the CEO of M’hudi wines. In 2003, she mobilised her family to move from Johannesburg to Cape Town and run a wine farm.
One day I said to my husband, “If it is not us who buy and own these farms, who is it going to be?”
When we decided to buy the farm, we did not have the initial capital. We took loans from banks, and used our pensions. There was no going back as we had invested everything, so we had to make it work.
With no experience, how did you manage?
Running the wine farm was a learning experience. We didn’t know anything about wine farming.
As we were preparing to buy the farm, we downloaded materials from the Internet; we bought magazines, we read everything. We found that most of the information on the Internet was from Europe. We had to adapt the information to our seasons.
We learnt a lot from our workers about the workings of the farm. That helped us to build good relationships with them.
Did you run the farm on your own?
We got to the farm on November 17, 2003. The following morning, we found four workers waiting for us. The previous owner had not told them that a new owner was coming, but somehow they found out.
We greeted them in English, but they didn’t respond. Then we tried our local language, still no response. Then my husband, whose mother was coloured, remembered that Afrikaans was spoken a lot in Cape Town. So he greeted them in Afrikaans and they all laughed. We could see the tension breaking. We could speak a common language.
However, my husband still worked at Johannesburg University and had to go back to work in two weeks. He left me on the farm where I had to face these men — the workers — every morning, in an industry that is not only male dominated but also predominantly white.
Because I could not speak Afrikaans, I had to look at their lips and point at things in order to communicate.
When my husband returned six weeks later, he found that I could get by in Afrikaans. I had no choice but to learn the language.
That sounds like a big challenge.
This experience taught me that no matter how big the challenge is, if your survival depends on it, you will rise above it. So I rose above the language barrier, and above the gender and race barriers.
What was the response from the other farmers?
The farmers around us were all white, and predominantly male.
Whenever we went to purchase farm implements and fertiliser, they thought we were workers. We had to tell them that in fact we owned the farm. It took them a long time to change their attitude towards us.
How did you choose the name M’hudi?
M’hudi means harvester, the one who picks the grapes. The logo represents a dynamic elegant woman following her star, her vision. We don’t want to take our eyes off our goal. M’hudi is also the name of a heroine who fled her war-ravaged village in search of a new beginning. The story is one of courage and determination against seemingly impossible odds and the relentless pursuit of one’s dreams and aspirations.
In November 2005, the M’hudi wine brand was born. From that time, the brand has kept growing.
What kind of challenges have you experienced?
Every time we went out with the wine, people wanted to know who the winemaker was. They asked, “Where does this wine come from?” We struggled with the local market.
We had to change our strategy; we were selling 70 per cent to the South African market and 30 per cent to Europe and the rest of the world.
We are now selling 90 per cent of our wine abroad, to the UK, the US, Germany and Switzerland.
We have also started building our brand in the African market. We are in Nigeria and Zimbabwe. I am looking forward to getting into the East African market and creating partnerships there.
What did you do before going into wine farming?
Before I went into the wine business, I worked as a clinical psychologist, and before that I was a teacher.
I like starting new things and all my experiences in my previous professions were preparing me to be where I am today.
What about the rest of your family?
I have three adult children and three grandchildren.
Early on, I asked my son, a journalist at the time, to come and help on the farm. Fortunately he was willing to change his profession and to come and be part of it. He used his experience as a journalist to drive around the land and observe what other farmers were doing. He has since trained as a winemaker.
My daughter, the middle child, did an MBA specialising in wine and strategy. She put together the strategy for the African market.
My husband eventually retired from his job at the university and is now in charge of marketing.
My youngest son, who trained as a video and sound engineer, came to join us after he finished school. He is our brand manager and makes all our marketing materials like videos.
We are now creating a legacy for our grandchildren. The grandchildren were born on the farm, and they will definitely have a better understanding of wine farming.
The family determines the vision, mission and operations of the farm; we determine the character of the business.
I hope you enjoyed the insights into more African business opportunities. It’s your time to grab them and not miss out!
I would love to hear your comments and questions! And if you’d like to get my latest articles on Africa business opportunities and tips as soon as they are published, feel free to click the little box ‘Notify me’ below the comment section.
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Thank you for your insight Doc, wine business has been on my ladder for some time now will certainly make an effort to be in touch with the Rangaka family