A historic agreement addresses the financing gap for small and medium-scale producers across South Africa.
By Maile Matsimela, Digital Editor at African Farming
Small and medium-scale black sugarcane farmers will gain unprecedented access to finance through a groundbreaking partnership between Kagiso Trust and the South African Farmers Development Association (SAFDA). The collaboration addresses long-standing barriers that have prevented emerging farmers from accessing traditional banking services.
The partnership establishes a short-term loan facility designed to meet immediate cash flow requirements for farmers who have historically been excluded from mainstream financial institutions. Traditional banks have consistently cited high risk and insufficient collateral as reasons for underserving this vital agricultural sector.
SAFDA, through its non-banking intermediary SAFDA Financial Services (Pty) Ltd, will work with Kagiso Trust to support more than 24 000 smallholder farmers operating on communal land with average farm sizes of 2.5ha. The initiative will also assist approximately 100 medium-scale farmers working on freehold or leased land of up to 80ha.
The centrepiece of the partnership is the Early Payment on Delivery (EPOD) facility, which provides farmers with immediate access to funds upon crop delivery. Kagiso Trust has committed R10 million for the current financial year, with an additional R20 million allocated for the following year. The organisations are also developing supplementary products to address seasonal production needs of land reform farmers.
Also read: Sweet support beckons for Zululand’s small-scale sugarcane growers
Breaking Financial Barriers for Black Farmers
“This partnership is about more than finance – it’s about unlocking potential,” explained 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.”
Dr Siyabonga Madlala, Executive Chairman of SAFDA, emphasised the transformational impact of the agreement. “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. The [EPOD] facility is not just about finance, it’s about restoring dignity, improving cash flow and enabling farmers to reinvest in their operations timeously.”
Dr Madlala highlighted Kagiso Trust’s long-term commitment to the sector. “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 that addresses the seasonal production needs of our small and medium-scale farmers. This is a game-changer for inclusive growth in the sugar industry.”
Small and medium-scale sugarcane farmers seeking to access the partnership benefits can contact regional Business Development Officers across key production areas:
South Coast region
Mvelo Bhengu: 079 365 5949
Jozini/Pongola/uMfolozi region
Bulisa Ngubane: 073 793 9984
Felixton region
Zama Phakathi: 081 069 2024
Noodsberg/Eston region
Nosipho Madlala: 072 531 3643
Amatikulu region
Siphesihle Nhlenyama: 071 612 1209
Gledhow/Maidstone region
Bulisa Ngubane: 073 793 9984
Komati/Malelane region
Ncedo Mahlalela: 072 916 3021
Samkelisiwe Zulu: 079 938 5390
