South Africa’s blended finance scheme has approved approximately R9.8bn in grant and loan funding for 627 Black commercial producers across multiple agricultural value chains.
Source: johnNaturePhotos via
PixabayThe funding forms part of ongoing efforts to improve participation across commercial agriculture and strengthen producer integration into higher-value markets.
“Since its inception, the scheme has approved approximately R9.8 billion in support for the agricultural sector, consisting of both grant and loan funding, benefiting 627 Black commercial producers across multiple commodities and value chains,” said Minister of Agriculture John Steenhuisen during the Department of Agriculture’s Budget Vote speech.
Thousands of jobs supported
According to Steenhuisen, the Industrial Development Corporation (IDC) partnership has approved 42 transactions worth more than R4bn.
“Through the IDC partnership alone, 42 transactions valued at over R4 billion have been approved, supporting approximately 7,869 jobs,” he said.
The Land Bank component of the scheme has supported more than 600 approved transactions and over 6,480 jobs.
“This support is increasingly being aligned with energy resilience through the Agro-Energy Fund, which is supporting producers investing in irrigation, intensive production systems and cold-chain infrastructure in response to rising energy insecurity and input costs,” Steenhuisen said.
Participation remains uneven
Steenhuisen said agricultural growth needed to become more inclusive and linked to broader value-chain participation.
“The share of value produced by Black participants in commercial value chains has increased from 11% to 13%, with much of that progress driven by gains in horticulture,” he said.
However, he noted that participation remained uneven across commodities, particularly within staple crop sectors.
“This Budget is therefore directed at deepening value chains, not just expanding output,” Steenhuisen added.
Market access remains a priority
Government has allocated R924m to Programme Four: Economic Development, Trade and Marketing to support export growth, market access and producer integration into higher-value markets.
Steenhuisen said diversified export markets remain important to improving sector resilience in an increasingly uncertain global trade environment.
