Land Bank, under the leadership of CEO Themba Rikhotso, has already delivered R2,8 billion in payouts to farmers. Its partnerships with Woolworths, Tiger Brands and Pick n Pay point to a new era of inclusive collaboration, linking Land Bank, emerging and commercial farmers, the private sector and the state.
By Liana Mocke, Senior Journalist at African Farming and Landbouweekblad
Land Bank CEO Themba Rikhotso and his team have made significant progress over the past three years, particularly in providing blended finance and market access to emerging farmers. To date, about R4 billion in financing has been approved, with R2,8 billion already disbursed thanks to collaboration with Absa and the Industrial Development Corporation.
“The remaining approvals are pending due to reasons such as obtaining water licences, environmental impact assessments, or farmers waiting for seasonal planting periods,” Rikhotso told African Farming. Some of the country’s other commercial banks are also expected to join Land Bank’s initiatives soon.
Most disbursements have gone to crop and livestock farmers, but the horticulture sector has also benefited. Rikhotso foresees promising diversification across commodities.
“Initial allocations strongly favoured crops such as maize, sunflower seeds and soya beans, as well as livestock such as cattle, sheep and goats. This accounted for about 90% of the funding, with horticulture receiving only 10%,” Rikhotso says. “There has been a noticeable shift, however, with horticulture now making up more than 20% of the portfolio. This includes investments in citrus, table grapes, apples, pears and other fruits with strong export potential.”
Rikhotso is also enthusiastic about investments in the poultry industry that are helping to address deficits outlined in the Poultry Sector Master Plan. “The country remains a net poultry importer, whereas the master plan envisioned it becoming a net exporter. Land Bank has initiated major transactions in this sector, partnering with prominent poultry companies such as Astral, Daybreak and Rainbow Chicken to expand production capacity. These initiatives are anchored in market-driven strategies, ensuring that poultry businesses are aligned with broader industry objectives.”
Also read: Land Bank disburses R20m in KZN, with R100m more in the pipeline
Market Access and Partnerships
Strategic partnerships are a key focus for Land Bank. The involvement of major role players such as Tiger Brands, Woolworths and PepsiCo is crucial in helping farmers gain market access, Rikhotso says.
“Ultimately, Land Bank’s role goes beyond financing; it seeks to drive growth by building sustainable ecosystems. Through partnerships, market access support and long-term infrastructure investments, the bank aims to empower farmers – especially black and emerging producers – to compete successfully in both domestic and global markets.”
Commercial farmers are also central to Land Bank’s strategy, not just as beneficiaries but also as active partners in transforming South Africa’s agricultural sector, Rikhotso says.
The bank further collaborates with industry bodies such as Grain SA, Potatoes SA and Macadamias SA to tap into technical expertise and specialised market segments, including nuts and grains. These partnerships align with the bank’s strategic intent to promote the development of targeted commodities while ensuring that farmers receive both financial and operational support.
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Expertise and Capacity
Land Bank is deliberate about assembling a team of seasoned professionals to drive its transformation efforts, Rikhotso says. “We have recruited experts with extensive experience in banking, agriculture and trade to design and implement our strategies. Regional heads and operational managers have joined from respected organisations such as Absa, Standard Bank and Woolworths, bringing with them valuable sector knowledge and skills.”
Land Reform and Transformation Goals
Land Bank plays a key role in supporting land reform. Discussions are ongoing with the Department of Agriculture to manage 2,5 million hectares of arable land acquired through proactive land acquisition strategies, Rhikhotso says. This initiative could greatly improve access to agricultural assets for emerging farmers, contributing to equal opportunities and sector development. He also emphasises that it is time for government to issue title deeds to farmers who currently only lease land from the state through land reform initiatives.
The bank will also pursue its transformation goals over the next five to ten years. “Our strategy identifies specific commodities for targeted investment, including poultry, livestock, and horticulture – citrus, apples, pears, table grapes and avocados,” Rikhotso says.
“Special attention will also be given to increasing the participation of black farmers in these sectors to address imbalances in ownership and production. The canola industry in the Western Cape is one example: black farmer involvement currently covers only 200 out of 166 000 available hectares – a figure the bank is determined to improve.”
Also read: Land Bank launches Area-Yield Index Insurance for smallholder farmers
