How does Fedgroup select its Impact Farming ventures? What about due diligence?

Fedgroup has been planning this model for several years. The first venture we looked at was solar farming because of the rising cost of electricity from the national grid. We realised that it would be a good idea to invest in renewable energy, but wanted to create the opportunity for ownership of the assets. We then decided to expand it to include more ventures such as beehives, blueberry bushes, macadamia trees and moringa trees. These assets were selected after careful consideration and due diligence, assessing the credibility and reliability of the farmers we have partnered with. In due course we will bring more crops onto the platform. We will continue to look at bringing more assets onto the platform in an effort to provide investors with a variety of assets to choose from in order to diversify their investment portfolios.

What due diligence has been carried out to protect my investment?

Extensive due diligence is performed on every product line to ensure its viability before it is brought to market. This due diligence is not just carried out on the assets that we offer for sale, but also on our service providers to ensure they can deliver on the task of managing these assets. We have also built market-tested financial models to map out returns over the lifetime of your asset.

Many ventures boast about massive returns but expect clients to take on all of the risk. Fedgroup believes that we can only offer the best possible service to our clients if we also have serious skin in the game. For our solar projects, we have acquired the largest installer of residential solar energy in the country, Emergent Energy, as our preferred service provider. We have also invested R20 million of our own capital into our blueberry farms and have invested capital into the moringa tree farm as well.

 

 

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