Free State tomato farmer Tsholofelo Magosi was over the moon when she first learned about Land Bank’s blended finance programme. As a high-potential small-scale farmer, she had been looking for funding options to grow her business and take it to the next level.
Magosi, who has been farming for four years, is one of the many farmers who have benefited from the blended finance scheme. It provides financing for small- and medium-scale producers, with a 50% equity injection in the form of a grant, and the other 50% as a loan that must be repaid.
According to Land Bank Commercial Banker Angelo Plaatjies, the programme is designed to help producers involved in value chain and aggregation activities, with a particular emphasis on those with significant development impact.
In an interview with Food for Mzansi’s popular Farmer’s Inside Track podcast, Plaatjies provided more information on the programme and its application requirements.
He explained that the blended finance scheme aims to assist producers who demonstrate their ability to repay the facilities and are not overcommitted. Applicants must also comply with all applicable legislation, including the National Credit Act. To qualify, and must demonstrate that their business has a positive development impact and meets specific criteria.
“The blended finance programme is an opportunity for SMMEs to come and grow their businesses with Land Bank,” said Plaatjies. “We are looking for sustainable businesses that can have a significant impact on the agricultural sector.”
The programme also provides funds for insurance that can subsidise cover for qualifying farmers, with a maximum cap of 6% of the entire ground portion. Plaatjies stated that the programme’s primary goal is to ensure that producers become more commercially viable.
To that end, Land Bank has initiated Monday morning presentations at its Pretoria branch to help farmers become more commercially viable to qualify for the programme. Applicants are also required to undergo a credit assessment to ensure that they can afford the facilities.
Plaatjies also noted that the programme is not available to politicians in public office, government and state-owned enterprise employees, foreign nationals, part-time producers, or so-called “remote control farming”.
He believes that the programme will provide a much-needed boost to Mzansi’s agricultural sector. “We believe that the blended finance programme will help to uplift small- and medium-scale producers in South Africa,” he said.
Meeting producers’ needs
Plaatjies added that the programme is already gaining traction among producers. Land Bank has received many applications and, contrary to popular belief, also already approved many. The programme’s success lies in the fact that it is designed to meet the specific needs of producers, he said. “The programme is designed to meet the unique needs of producers, and we are confident that it will continue to grow and benefit many producers.”
Meanwhile, Magosi is excited that Land Bank is catering to the needs of high-potential small-scale farmers, such as herself. She currently provides vegetables to a leading supermarket and is grateful for the opportunity to access funding and grow her business.
Her journey is a testament to the power of perseverance and the willingness to take risks in pursuing one’s dreams.
“As I continue to expand my business with the help of Land Bank, I hope that my story will inspire other new-era farmers to never give up on their goals and to always have the courage to push through obstacles and setbacks. With determination and hard work, we too can achieve great things.”
- Click here for the Land Bank’s provincial office contact details, and to obtain application details for the blended finance scheme. Call 012 686 0500 for more information.
