WineLand

putting you in touch
with the SA wine industry community

PREVIOUS WINELAND ARTICLES   |   WINELAND HOME


SAWIT status quo

The giraffe extends its reach

by Hymli Krige

Marthinus Saunderson has been running the South African Wine Industry Trust (Sawit) for three years. In many ways, the Trust has been a foundling to him - born from opposing parents in a courthouse - and one that had to be raised and nurtured in a difficult time of transformation. WineLand asked Marthinus to reflect on his experiences over this period.

Marthinus Saunderson, general manager of Sawit, celebrates with eight students who were selected to visit Burgundy. From left were Richard Philips (Vriesenhof), Mario Damon (DGB), Felicity Seholoba (Stellenbosch Vineyards), Veronica Campher (Elsenburg), Brenton Voegt (Burgherspost Vineyards), Andries Pietersen (Warwick), Abraham Suse (Welgemeend) and Marius Jacobs (Winecorp).
Marthinus and I had the table in the Sawit boardroom to ourselves on a winter's morning that had the feeling of snow on its edges. The boardroom is part of Sawit's small office setup on the second floor of Nietvoorbij's old manor house, on the outskirts of Stellenbosch.

It seems like a reflex for Marthinus to grab a huge sheet of white paper and a pen, the moment I started asking questions. He draws an outline:

The Trust was formed at the end of 1998 (with the transformation of KWV to a company) when KWV and the Minister of Agriculture each appointed a set number of directors to serve on the board. Devco and Busco were the next to be established, each also with a board and directors. Each of the directors on all three boards has an alternate.

One of the things I have aimed to do from the very beginning, is to put money into people and their development, rather than into buildings.
There is the old adage that a giraffe typifies an animal designed by a committee, with its apparently awkward features. On paper, Sawit had the makings of a great giraffe. And that is exactly what Marthinus had to make walk tall.

The highlights of his time working for the Trust? We talk around plenty of issues until we get to the point where Marthinus' brown eyes start shining, and his hands flutter with real emotion. He tells of the letters that he has received from the students and institutions where the Trust has been able to arrange for local black people to work overseas in other wine industries. "Everything has been made worthwhile by those letters," he smiles. For him, the exhilaration partly comes from the realisation that none of these students would ever have had the opportunity to work in France or California without the Trust.

His other pride and joy is the Umaza Trust project in Lutzville. "Had there been an independent competition in agriculture for an empowerment project, this one would have beat them all," he states unequivocally. "The way we approached the project and structured the business plan and shareholding has contributed to the successes," he believes.

Two other highlights have been the Vineyard Academy and the establishment of the Wine Education Fund. Marthinus emphasises the fact that farm workers, who previously had little choice in terms of work options, giving their often limited skills, can now be actively involved in building a career in the wine industry. "Even people who are functionally illiterate, can now receive accredited training, and specialise."

One's strongest sense of achievement often lies where one had to struggle most. In the case of Marthinus, this has clearly been on the development side of the Trust.

"In terms of Busco, it was relatively easy to channel funds, as most of the necessary structures were already in place. Devco (the development arm of the Trust) was a different story. Some projects were rejected, some approved, and those that were approved had to be monitored."

Devco represents the focus point around which most questions from the industry have been surfacing. People were getting impatient with the Trust, exasperated about projects being rejected and launching increasingly personal attacks on Marthinus.

The sturdy general manager shrugs his shoulders and gives me a concerned smile. "One of the things I have aimed to do from the very beginning, is to put money into people and their development, rather than into buildings. To me it has also been exceptionally important to use the existing infrastructure, and to ensure that projects are being run by people with the right skills and abilities."

Although Marthinus seems to be bravely shouldering most of the responsibility, he admits that he has very little authority when it comes to decision-making. Every single request for funding and every project proposal gets submitted to the board of directors - in this case of Devco. It is up to Marthinus to prepare the motivation and recommendations regarding each project, which is then discussed thoroughly. Projects are either accepted or rejected by the board concerned, but quite often referred back to the relevant parties with possible suggestions, conditions to be met or different options to be negotiated.

Although this process is fully transparent, its weakness up to now has been the cumbersome process of getting the directors and trustees together for meetings. The boards of the Trust and its two subsidiaries involve 76 people in total, and for each at least four meetings per year have to be organised. This does not support a flexible and quick process of decision-making. "We are now looking at restructuring the Board," Marthinus consoles me.

In an ideal world, what would he change to ensure the better functioning of the Trust? Marthinus thinks awhile before nodding to himself: "More people." Considering that other companies spending close to R25 million per year have employee counts that run from tens into hundreds, this does not sound unreasonable. "At the moment it is impossible for me to focus," Marthinus admits. "The way things are now, we cannot serve the interests of important issues such as alcohol abuse, properly."

Finally, we tackle the issue of the new South African Wine and Brandy Company. How does he, as general manager, see Sawit positioning itself in relation to the SAWBC? "We have provided funding to the amount of R750 000 for the development of Vision 2020," he states, "therefore we certainly support the establishment of the SAWBC".

Unfortunately (as our giraffe has to amble along until the next board meeting) Sawit has not yet formulated an official viewpoint in terms of the SAWBC. Marthinus does foresee, however, that their role will be primarily focussed in the business units.

In terms of good corporate governance, you can't fault the Trust. As for the dedication and commitment of both Marthinus Saunderson and his right hand person, Heidi van Eden - their hearts and hands are in the right places. Where flexibility is concerned, and smoothing out the potholes in some projects, there are encouraging and open conversations taking place. Speeding up the processes, I believe, is a priority. It would do a lot to quiet down the rustles of disenchantment.

How to approach Sawit for Devco funding:

  • Telephone 021 809 3047 and request an application form
  • Fill in the form and set out your objectives (remember, the emphasis is not on developing infrastructure, but on developing people and communities)
  • Send the form back to Sawit
  • If there are any areas of uncertainty or matters that require more background or detail, Marthinus will contact you and request the relevant information
  • The proposal will be tabled at the next Devco Board meeting
  • Marthinus will inform you of the Board's decision on your proposal.
Examples of present Devco projects
  • Ebenhaeser Nursery project aims to establish nurseries in the Ebenhaeser and Saron communities that will produce certified grapevines under the plant quality control scheme of the Vine Improvement Association.
  • The Ruth Project targets women in the Robertson Valley by teaching them to weave baskets from vine pruning cutoffs. They acquire a skill that they can use to earn their own income, with the aim of eventually running their own businesses.
  • The Thembelihle Centre for the Aged is one of the projects that were initiated when President Mandela invited Unifruco, KWV and Stellenbosch Farmers' Winery in 1998 to participate in development projects in the Northern Cape. It promotes independent living of older persons, provides socialisation, interaction, care and meals.
  • The small farmers in Jacobsdal established approximately 1,6 ha of wine grapes with the support of the Free State Department of Agriculture. Devco was approached with a request for R20 000 to install an irrigation system.
  • Lutouw is essentially an empowerment project to create employment and assist emerging farmers. It is estimated that the project in total should create 100 permanent job opportunities and up to 200 more seasonal job opportunities. The aim of the project is to buy 40% equity for the Umaza Workers Trust.
  • The Sanca project is driven by the Medical Research Council and drives the education and empowerment of farm workers by training health workers, thus enabling them to visit farms and educate farm workers re: TB, alcohol abuse, FAS, AIDS and basic healthy lifeskills.
Busco fund allocations 2002/2003
Generic Export Promotion (WOSA and the Cape Wine Academy) R4,9 million
Research Technology, Development and Transfer (Winetech & VinPro) R7,6 million
Liquor Industry Task Group R400 000
Admin: Voluntary Surplus Removal R400 000
TOTAL R13, 3 million


Devco fund allocations 2002/2003
Establishment of New Farmers R4,7 million
Support and Upliftment R4,5 million
Marketing Extension & Surplus Removal R1,8 million
TOTAL R11,0 million

Visit our sister sites:


Technical guide for wine producers


South African wine farmers' representative organisation


2009/10 Directory Now Available!
Facts, figures, contact details and much more...

UP COPYRIGHT (C) 2000 WineLand