Land Bank has resumed its lending activities and is now offering a blended finance scheme to small- and medium-scale producers. This, according to agricultural experts, marks a positive step towards the support and growth of these producers.
According to Angelo Plaatjies, a Commercial Banker at Land Bank, the scheme will assist high-potential projects in achieving sustainability and growth, with a particular emphasis on those with significant developmental impact.
Plaatjies was speaking to Dawn Noemdoe, the host of Food for Mzansi’s Farmer’s Inside Track podcast.
When asked about the perception that the development finance institution only catered for large-scale commercial farmers in South Africa, he said: “At Land Bank, we do provide services for small and medium-sized producers as well.
“The objective is to facilitate meaningful participation of our black producers, our black farmers and majority black-owned enterprises owning and controlling the agricultural value chains.”
‘Aimed at commercialisation’
Plaatjies also explains that the blended finance programme is established in partnership with the Department of Agriculture, Land Reform and Rural Development to commercialise development farmers. “It is aimed at commercialisation,” he said.
“And when I say black-owned enterprises, this does not mean it’s only open to historically disadvantaged individuals, a business with a component of 60% black, 40% white can also partake in this.”
The scheme aims to target agricultural commodities that align with the Agriculture and Agro-processing Master Plan. These include grains and oilseeds, fruits and nuts such as citrus, deciduous and subtropical fruits and nuts, livestock including poultry, piggeries, and red meat, and other food sectors such as dairy, sugarcane, aquaculture, and vegetables.
Additionally, non-food sectors such as wool and mohair, as well as industrial crops like cotton, are also part of the programme.
Committed to farmer development
When Land Bank experienced a default on its liabilities in 2020, the bank continued to honour its commitments towards its existing clients, added Plaatjies.
“As a bank, we did honour our commitments in a form of production facilities.
“And yes, the Land Bank is currently accepting new applications and new business, and we do offer financing for all the necessary products that the farmer may require in their day-to-day activities. So it is very seldom that you would find that a product would not be covered if you are in the relevant space.”
The programme is seen as a step towards addressing some of the major challenges facing small- and medium-scale farmers in South Africa, including access to finance, markets, and technology. The blended finance model offers a new way to leverage public and private sector resources to support sustainable and inclusive agricultural development.
Click here for the Land Bank’s provincial office contact details, and to obtain application details for the blended finance scheme.
- Next week, Food For Mzansi will take a further look at the Land Bank’s blended finance programme. We will then touch on the scheme’s funding scope as well as the minimum requirements that farmers should meet to possibly qualify for assistance.
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