In a major breakthrough for black smallholder and medium-scale sugarcane farmers, Kagiso Trust and the South African Farmers Development Association (Safda) have signed a landmark funding agreement to address the chronic lack of access to finance in the sector.
The partnership will provide a short-term loan facility aimed at easing immediate cashflow pressures faced by thousands of emerging farmers who have long been excluded from traditional financing channels.
With R10 million earmarked for the current financial year and an additional R20 million committed for the next, the initiative will see eligible farmers benefit from a facility known as Early Payment on Delivery (EPOD) – a mechanism designed to improve liquidity and allow for timely reinvestment in farming operations.
“This partnership is about more than finance. It’s about unlocking potential,” said Dr Mankodi Moitse, CEO of Kagiso Trust. “At Kagiso Trust, we are committed to driving social and economic justice, and through this facility, we are creating real access to capital for farmers who have long been excluded by traditional financial systems.”
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Breaking down barriers to finance
Systemic barriers to finance, such as a lack of collateral and risk profiling by commercial banks, have long plagued black farmers.
While institutions like the Land Bank inherited legacy loan books, development finance has yet to reach the 24 000 smallholder sugarcane farmers who typically operate on communal land of around 2.5 hectares, as well as 100 medium-scale farmers on freehold or leased land of up to 80 hectares.
Safda, through its non-banking financial intermediary, Safda Financial Services (Pty) Ltd, is leading the charge in bridging this gap.
“This partnership between Safda and Kagiso Trust marks a significant milestone in our ongoing mission to transform the agricultural sector and empower small and medium-scale black sugarcane farmers,” said Dr Siyabonga Madlala, executive chairman of Safda.
“The Early Payment on Delivery (EPOD) facility is not just about finance; it is about restoring dignity, improving cash flow, and enabling farmers to reinvest in their operations timeously. We are particularly encouraged by Kagiso Trust’s commitment to not only support the current season but to grow this facility into a long-term solution. This is a game-changer for inclusive growth in the sugar industry.”
In addition to financial support, the partnership includes non-financial assistance, which will be rolled out across both KwaZulu-Natal and Mpumalanga provinces. A further product is also in development to support the seasonal production needs of land reform farmers.
To access the benefits of this partnership, small and medium-scale sugarcane farmers are encouraged to contact their regional business development officers:
- South Coast: Mvelo Bhengu, 079 365 5949
- Jozini/Pongola/uMfolozi: Bulisa Ngubane, 073 793 9984
- Felixton: Zama Phakathi, 081 069 2024
- Noodsberg/Eston: Nosipho Madlala, 072 531 3643
- Amatikulu: Siphesihle Nhlenyama, 071 612 1209
- Gledhow/Maidstone: Bulisa Ngubane, 073 793 9984
- Komati/Malelane: Ncedo Mahlalela, 072 916 3021
- Komati/Malelane: Samkelisiwe Zulu, 079 938 5390
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