Gauteng agriculture officials fielded numerous questions from frustrated entrepreneurs during a webinar on Wednesday 23 April, revealing widespread confusion about the Agro-Processing Blended Financing Scheme and announcing new support measures to address application failures.
By Maile Matsimela, digital editor at African Farming
The webinar, hosted by the Gauteng Department of Agriculture and Rural Development (GDARD) and the National Empowerment Fund (NEF), drew more than 200 participants seeking clarity on the scheme, which was originally launched by MEC Vuyiswa Ramokgopa at the Gallagher Convention Centre in July last year.
Tediso Molepo, director of GDARD’s Agro-Processing Unit, led the session alongside NEF representatives, addressing questions about rejected applications and compliance requirements.
Current applications are open from 21 April to 22 May 2026.
Multiple participants questioned whether start-ups could access the fund, prompting detailed clarification from officials.
“Is it true this programme does not fund start-ups?” asked participant Samkelo, echoing concerns from several attendees.
Molepo was direct in his response: “If you are a start-up … here we are talking blended finance and by its definition, it cannot be for a start-up.”
Officials defined start-ups as businesses “that have been conceived or are in the process of being conceived and have not started trading… There are no financials … the project is still at conceptual stage.”
However, Molepo outlined alternative support: “We will send colleagues who will come to your enterprise [to] look at how we [can] assist you to start up, whether we’re going to put you through incubation, whether we will assist you through our food safety training, whether we will assist you with entry-level equipment and machinery.”
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Meat Processing Requirements Draw Detailed Questions
Pig farmer Nozipho Mngomezulu raised specific sector concerns: “What are the requirements for meat processing and building an abattoir?”
Officials outlined two categories of requirements: Standard business documentation and specialised regulatory compliance.
“Food safety, health standards, EIA where applicable, zoning, general good practice standards,” officials listed. “Meat processing is sensitive – it’s food for public consumption and so regulatory compliance must be in place.”
Security Issues Prompt Risk Assessment Clarification
The attendees sought clarification on common reasons for the rejection of applications: “Clarify ‘lack of security’ and why the NEF considers some farming industries as ‘high risk while farming is [by] its nature high risk’.”
The officials explained their assessment criteria: “It is not simply ‘no house to secure loan’. It’s about the business assets and whether the NEF can take effective security for the funded assets.” Officials noted that if equipment being funded was already encumbered by other lenders, or business assets couldn’t serve as adequate collateral, the NEF’s risk exposure increased.
Regarding farming’s risk classification, officials said “market variability, seasonality and perishability” were key factors requiring “evidence of stable offtake and realistic volumes/prices”.
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Rejected Applicants Seek Specific Feedback
Agro-processor Lydia Moloto described her application experience: “We complied with many items but have outstanding food health and safety items and pending water rights. Why was our earlier application declined?”
Officials acknowledged the frustration while maintaining their standards: “Decline letters contain reasons and usually state that reapplication is welcome once issues are resolved.”
They promised more detailed support: “NEF/GDARD will review declined applications in follow-up engagements [roadshows, physical visits’.”
Another participant, Blessed from Hope for Nations, requested specific feedback on their rejection. Officials responded that while they “cannot give full reasons in the webinar”, entrepreneurs should “bring their application to the roadshow for face-to-face review with the technical committee”.
Market Validation Questions Reveal Due Diligence Process
Several participants questioned the validity of letters of intent and market offtake agreements.
“Are generic letters of intent acceptable?” participants asked.
The NEF’s response was uncompromising: “Letters of intent are considered but are subject to due diligence. NEF will verify the credibility of the buyer, their turnover, capacity to purchase and pay.” Officials warned that market commitments must specify quantities, frequencies and prices while aligning with financial projections.
“A letter claiming large purchases must be consistent with the buyer’s financials,” officials said. “A mismatch will make the letter invalid for funding purposes.”
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Compliance Grant Pathway Announced
Officials detailed a compliance grant of up to R250 000 for enterprises facing regulatory barriers. “We will be in a position to recommend … that you get a grant for compliance, a compliance grant. For an amount not exceeding R250 000,” officials announced.
The grant “is not going to be looked at as a separate fund”, but forms part of the blended financing application process. “If the application for the blended fund has got challenges due to issues of compliance, we will then take this application … and channel it for grant funding in the form of a compliance grant,” officials explained.
Documentation Requirements Emphasised
Officials repeatedly stressed strict documentation standards.
“Those that were mentioned in the advert – those are very important… If there is one no, then the application is put aside,” they warned.
Required documentation includes food safety compliance certificates, a Certificate of Acceptability (COA), water use licences, Environmental Impact Assessments (EIAs) where applicable, audited financial statements, South African Revenue Service (SARS) and Unemployment Insurance Fund (UIF) compliance, business plans and market offtake agreements.
Multi-agency Roadshows Announced
Officials announced three regional roadshows starting the week of 4 May, covering the Tshwane, Germiston and Randfontein regions.
“At the various roadshows, the colleagues from municipalities will be there… The colleagues who deal with COAs will be there. In fact, we have requested that they should come and make presentations,” officials announced.
The Department of Water and Sanitation has also been invited to assist with water use licence queries.
“Come with a printout of your application,” officials told participants, promising technical committee reviews.
Fund Positioning Clarified
Molepo emphasised the scheme’s role within broader support ecosystems: “Please look at this fund as complementary to other existing funds. Do not look at this fund as the only fund that is there to support.” He noted that GDARD continues supporting smaller agro-processing requirements under R1 million through Request for Quotation processes while offering start-up services including incubation, food safety training and entry-level equipment assistance.
Officials confirmed that eligible entities must be Pty Ltd companies or cooperatives registered with the Companies and Intellectual Property Commission (CIPC).
Next Steps for Applicants
The webinar concluded with officials directing participants to monitor GDARD and NEF social media channels for roadshow announcements. With applications closing on 22 May, officials emphasised the importance of complete documentation and encouraged participation in upcoming roadshows for hands-on assistance.
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