Land Bank’s Blended Finance Scheme has come under scrutiny from parliament’s Portfolio Committee on Agriculture, which has questioned the programme’s sustainability amid growing demand for funding and limited resources.
By Lebogang Mashala, editor at African Farming
The concerns about the Blended Finance Schemeemerged during a recent briefing by the Department of Agriculture, Land Bank and other stakeholders on the implementation and performance of the scheme. This included progress in responding to recommendations arising from parliament’s 2025 oversight visits to funded projects in North West.
Funding shortages raise concerns
In a statement issued by the committee, members warned that funding shortages, weak oversight capacity, delays in disbursements and the over-commitment of available funds by Land Bank threaten the programme’s ability to support the commercialisation of black farmers and advance transformation in the agricultural sector.
According to the committee, the scheme requires about R1,5 billion annually to meet demand, yet only R613 million has been allocated for the 2026/27 financial year.
Members also expressed concern that Land Bank has over-committed available funds and may be unable to approve new projects until funding constraints are resolved.
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Focus must be on outcomes
Portfolio Committee chairperson Dina Pule said the committee’s primary concern is whether public funds are delivering meaningful developmental outcomes.
“While the committee welcomes efforts by the department and Land Bank to improve governance and strengthen support to beneficiaries, our interest is not in the volume of loans approved or grants disbursed, but in the outcomes achieved through public investment,” she said.
Pule stressed that the scheme’s success should be measured by the commercialisation of emerging black farmers, agricultural transformation, job creation and food security.
Delays and oversight questioned
The committee also raised concerns about delays in the disbursement of approved funding, noting reports that some farmers received support only after planting windows had closed, negatively affecting productivity and increasing financial risk.
Members further questioned whether adequate due diligence had been conducted before funding approvals were granted, and called for stronger monitoring and accountability measures.
The committee emphasised the importance of ensuring that beneficiaries receive technical support, mentorship and market access to improve their chances of establishing sustainable farming enterprises.
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Transformation beyond production
Members argued that transformation efforts should extend beyond primary production and reach the broader agricultural value chain, including processors, exporters and buyers.
The committee also called for enhanced support for agricultural graduates and young people seeking entry into the sector through improved access to finance, land, mentorship and business incubation programmes.
Stronger accountability needed
Additional concerns raised included communal farming projects, mechanisation, climate-related risks, insurance coverage and regulatory compliance challenges faced by emerging farmers.
Some projects have improved following intervention by the Department of Agriculture and Land Bank, but the committee felt that stronger oversight, regular reporting and measurable outcomes are needed to ensure public resources support meaningful agricultural transformation, inclusive growth and job creation.
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