By Marieke Snyman

A spirited panel discussion at the African Farming Agri-Development Imbizo 2025 in Pretoria has brought to light the persistent struggles African farmers face when seeking financial support. The session, moderated by Peter Mashala, editor of African Farming, featured financial experts and agricultural stakeholders who highlighted the dire need for reformed lending practices, enhanced communication and tailored financial solutions to support the country’s agricultural sector.

Banking on agriculture: The disconnect

The panel, which included representatives from Land Bank, Standard Bank, Mogalemone, The Yende & Partners, and the Kgodiso Development Fund, unanimously identified a significant disconnect between traditional banking practices and the realities of farming.

Jabu Mphambo from Land Bank emphasised their unique position in the market. “We are not just a bank that looks at you commercially; it is at the core of our mandate to develop farmers. Pre-finance and post-finance support are crucial to ensuring success for emerging farmers.”

However, farmers in attendance expressed profound frustration with financial institutions. One farmer’s testimony resonated with many in the audience: “There are farmers out there with the awards, certifications and the financials in place. Still, we are waiting for months or even years for answers from banks. No one tells us why our applications fail. At the very least, say no – because even a no is an answer!”

The collateral conundrum

Land ownership emerged as a central issue during discussions. Without clear title deeds, many farmers – especially younger ones – struggle to secure loans. Generational farmers often inherit not just land but also substantial debt, further complicating their access to new financing.

Keneilwe Mabona from Standard Bank acknowledged these challenges: “The responsibility is on us as banks to change our funding models to support farmers better. But farmers also need to come prepared and manage their business finances professionally. If you don’t understand what the bank needs, ask. And yes, go to their manager or head of agri-finance if you’re being ignored.”

Financial literacy: A two-way street

Tshegofatso Selepe from the Kgodiso Development Fund highlighted a critical gap in many farming operations. “Farmers have the passion and technical expertise, but the business acumen side – record-keeping, succession planning, financial discipline – is often lacking. That’s why we support farmers with weekly coaching or monthly visits as part of our funding approach.”

This sentiment was echoed by other panellists who noted that poor financial management – including insufficient record-keeping and mixing personal and business finances – creates significant barriers to “bank readiness.”

Keneilwe Raphesu from Mogalemone advised farmers to leverage affordable technology solutions. “Tools such as Sage and Excel can provide affordable bookkeeping and record-keeping instead of relying solely on expensive accountants. Start with what you have and build from there.”

Innovative solutions emerging

The panel didn’t just highlight problems – they also showcased emerging solutions. Blended finance structures, where a portion of funding comes as a grant and another as a loan, are gaining traction. One example mentioned was an application structure where 60% comes as a grant and 40% as a loan, effectively reducing the repayment burden.

Tshegofatso Selepe of the Kgodiso Development Fund discussed alternative funding avenues. “Farmers should look beyond traditional banks. Private investors, government incentives, accelerator programmes and even competitions can provide crucial capital with more flexible terms.”

The “AgriVuno Accelerator Programme” was cited as an example offering not just funds but also invaluable mentorship and networking opportunities – resources often as important as the capital itself.

“Diversify your funding sources,” advised Mabona. “The most successful farmers we work with have multiple revenue streams and multiple funding sources. Don’t put all your eggs in the banking basket.”

The time factor: Patience running thin

Perhaps the most consistent complaint from farmers was the extended turnaround times for loan applications. Stories of farmers waiting 6-12 months without resolution were common, with some reporting multi-year waits.

“The seasonality of farming means timing is everything,” explained a frustrated farmer from the audience. “If I miss the planting window because bank approvals are delayed, that’s an entire season’s income lost. Banks need to understand that in agriculture, time literally is money.”

Mphambo acknowledged this challenge, noting that Land Bank is working to decentralise some approval processes, allowing regional offices to approve smaller loan amounts to address turnaround-time issues.

The youth question

Young farmers face unique challenges in accessing finance. As one young farmer passionately explained, they need more than farm skills. “Running a farm is running a business. Compliance is not enough if funding structures make it impossible for young farmers like me to get support. Banks must understand our realities – for instance, high debt inherited from previous generations limits youth’s ability to grow agricultural enterprises.”

This sentiment sparked discussion about the need for youth-focused agricultural finance products that account for their unique position as newcomers to an established industry.

The way forward

As the session concluded, Mashala asked each panellist to offer one actionable piece of advice for farmers seeking financing.

Selepe emphasised the importance of succession planning. “Legally formalise your succession plans. This ensures business continuity and safeguards operations in case of incapacitation or death – something banks look at closely.”

Mabona encouraged persistence and preparation. “Come prepared, know your numbers and don’t be afraid to escalate your application if you’re being ignored. The squeaky wheel gets the grease.”

Yende stressed financial discipline. “Separate personal and business finances from day one. This single practice will make you more bankable almost immediately.”

Mphambo highlighted the importance of relationships. “Build relationships with your financial institution before you need money. Understanding comes through relationship.”

Raphesu concluded with a call for collaboration. “Farmers should form cooperatives or working groups to share resources, knowledge and even apply for funding collectively. There’s strength in numbers.”

The panel made clear that while significant hurdles remain in agricultural financing across Africa, innovative solutions are emerging. With better communication between financial institutions and farmers, improved financial literacy and more tailored lending products, Africa’s agricultural sector stands poised to flourish – feeding not just the continent but potentially the world.

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