Growing a farm requires some financial injections. Although most farmers only look to traditional banking for finance, Gene Likhanya, the founder of Madimbo Agri Group, advised the audience at the first-ever African Farming AgriFund Connect Summit, held at the Birchwood Hotel & OR Tambo Conference Centre on 6 November, to look for alternatives.

By Maile Matsimela, Digital Editor at African Farming

Likhanya shared lessons with the audience from his own repeated bank application rejections because of credit history challenges.

Likhanya’s funding journey shows the power of looking beyond traditional sources. After banks repeatedly declined his applications, he successfully secured funding through a foundation. His approach centres on understanding that different funders have different motivations and requirements. “Understand who you’re talking to. Understand the mandate. Understand what the foundation wants out of you. Pitch according to the request,” emphasised Likhanya, who also has an entrepreneurship degree from the University of Johannesburg.

Also read: From soil to success: How a macadamia farmer secured financial backing

The Power of Impact-focused Pitching

Likhanya says his first major funding breakthrough came when he positioned his proposal around community impact rather than purely financial metrics. He successfully secured funding from a foundation by articulating how his farming venture would create 35 permanent jobs, transforming lives in his community.

Also read: R30m finance facility for black sugarcane farmers unlocked

“I see farming not just as a business but as an avenue to address societal challenges like poverty, gender-based violence [GBV] and substance abuse. I was authentic about my story. I was never shy about my situation, which included me being under debt review… I would tell them that I’m not a bad businessman. I know how to make money, how to farm, but this is my situation today,” Likhanya explained, adding that if he had stuck to the traditional way of funding, his applications were simply going to be declined as many times because something was “wrong” with the name.

When addressing funding strategies, Likhanya emphasised meaningful storytelling over traditional 40-page business plans. “Get the excitement going, you know, entertain the investor in such a way that they want to hear more,” he advised. The key is creating engagement and building relationships with potential investors rather than overwhelming them with lengthy documentation.

Creative Negotiation Strategies

Likhanya talked about the importance of flexible thinking in funding negotiations. In one example, he negotiated zero-interest loans and flexible payment terms for expensive equipment, such as a Komatsu bulldozer costing R5 million to R6 million by clearly presenting the potential community impact and cost-effectiveness.

“I demonstrated how we could reduce operational costs for neighbouring farmers while making processing services more affordable,” Likhanya noted, showing how innovative approaches can make funding proposals more attractive to investors.

Building a Compelling Case: The Likhanya Journey

Likhanya’s credentials as a funding strategist come from his authentic 20-year agricultural journey. Starting with just 2.5ha of macadamia farming, he has grown his operations to encompass 2 000ha. His current farming operations include 120ha of macadamias, 30ha of avocados and 20ha of bananas.

Also read: India offers major growth potential for South African macadamias

Rather than focusing solely on crop production, Likhanya diversified into consulting, plant-hire services and value-chain operations. He established Madiba Plant Hire to help farmers access proper equipment affordably, creating multiple revenue streams that make his business more attractive to funders.

This diversification strategy also challenged conventional thinking about land ownership in agriculture. Likhanya advocated for alternative approaches, including “farming through leasing, community land agreements and innovative strategies instead of relying solely on ownership”.

Key Principles for Securing Alternative Funding

Throughout his presentation, Likhanya outlined core principles for successful funding:

Research Your Funders: Understand their specific goals and mandates, and what they aim to achieve through their investments.
Lead with Impact: Position proposals around community benefits and societal challenges rather than focusing solely on financial returns.
Be Authentic: “Be honest about your situation and clearly communicate your strengths, challenges and vision,” he advised.
Use Modern Communication: Use pitch decks and engaging presentations instead of lengthy traditional business plans.
Think Beyond Banks: Explore foundations, private equity, impact investors and specialised agricultural funds.
Negotiate Creatively: Be flexible with terms and payment structures when you can demonstrate clear community impact.

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