MADC was constituted in terms of Mpumalanga Agricultural Development Act, 2007 (Act no. 3 of 2007). Due to the dual nature of the sector in South Africa, the imbalances were glaring, particularly within the previously disadvantaged communities. The political leadership of the province deemed it fit to redress these imbalances.
The MADC positioning is that it is able to deal effectively with these imbalances. The province is predominantly rural and poor. Previously disadvantaged individuals lack basic factors of production such as land, machinery and capital.
The MADC is in the business of "People Development" through funding of viable agricultural enterprises and development of people's capacity by means of business advice, counseling, facilitation of training and access to markets. Conducting project management for targeted intervention is a priority.
MADC has extended its role of empowerment through the provision of training and skills development. Farmers are trained in basic business management principles and also on farm management. This has had a positive effect on the farm profitability and resulted in improved repayment of loans, as well as good human relations. The courses are being certified and accredited by AgriSETA.