The African Farmers’ Association of South Africa (AFASA) has thrown its weight behind concerns raised by Parliament’s Portfolio Committee on Agriculture over the long-term sustainability of the Land Bank’s Blended Finance Scheme, warning that funding shortages, delayed disbursements and weak oversight are undermining efforts to transform emerging black farmers into commercial producers.
By Lebogang Mashala, editor at African Farming
The scheme recently came under scrutiny after members of the committee questioned whether it would be able to meet growing demand for agricultural funding amid limited financial resources. Concerns were also raised about slow disbursements, the number of beneficiaries being reached and the availability of funding to support emerging and previously disadvantaged farmers.
Responding to the committee’s concerns, AFASA President AJ Mthembu said the organisation shared Parliament’s concerns about the programme’s sustainability.
“Farmers have consistently reported that the programme’s long-term viability is threatened by funding shortages, delays in disbursements and the Land Bank’s limited capacity,” said Mthembu.
According to AFASA, the scheme is further constrained by funding criteria that are not sufficiently transformative. The organisation argues that the Land Bank continues to assess applicants in much the same way as commercial banks, making it difficult for many emerging black farmers to access funding intended to support transformation.
AFASA pointed to a significant funding gap facing the programme. Parliament noted that about R1.5 billion is required annually to meet demand, yet only R613 million has been allocated for the 2026/’27 financial year.
“This gap directly undermines confidence in the programme and creates uncertainty for farmers who rely on predictable and timely support,” Mthembu said.
Also read: Parliament sounds alarm over Land Bank Blended Finance Scheme funding gap
Call for a developmental funding approach
AFASA says the blended finance model is a valuable tool because it combines grants and loans, but believes its impact is being limited by funding constraints and restrictive allocation conditions.
The organisation is calling for the urgent recapitalisation of the Land Bank, more flexible assessment criteria aligned with transformation objectives, stronger partnerships with farmer organisations and improved pre- and post-funding support.
“Greater emphasis should be placed on developmental outcomes rather than purely commercial lending criteria,” Mthembu said.
Oversight and monitoring concerns
AFASA also supported Parliament’s concerns regarding the performance of projects previously visited during oversight visits, including Ditaung and Emway Trading.
Although the organisation does not directly oversee these projects, it said farmers in several provinces have reported inadequate pre-funding assessments, weak post-funding monitoring, limited technical support and delayed responses when projects begin experiencing difficulties.
“These issues are not isolated. They reflect systemic weaknesses in project management and oversight across the scheme,” said Mthembu.
AFASA believes farmer organisations should be formally integrated into monitoring structures because they are often the first to identify operational challenges on the ground.
Also read: Patient capital critical to unlocking agricultural finance
Delayed disbursements and funding backlogs
The organisation confirmed that delayed disbursements are one of the biggest frustrations among beneficiaries. Farmers continue to report long turnaround times between funding approval and payment, resulting in missed planting windows and delayed supplier payments.
Although AFASA acknowledged that improvements have been made in some provinces, it said progress remains uneven.
The organisation also agreed with Parliament’s concerns that the Land Bank has overcommitted available funds, creating a backlog of approved but unfunded applications. According to AFASA, the problem stems from chronic underfunding of transformation-focused agricultural finance, the Land Bank’s own financial constraints and strong demand from emerging farmers who have limited access to alternative funding sources.
AFASA steps up engagement
To address these challenges, AFASA has strengthened its partnership with the Land Bank through a revised memorandum of understanding aimed at improving farmer access to funding and compliance support.
Planned interventions include nationwide roadshows, financial management and compliance training, joint task teams to address bottlenecks and continued advocacy for increased funding and farmer-centred reforms.
The organisation is also gathering evidence from members on delays, bottlenecks and project failures for submission to Parliament and the Department of Agriculture.
Mthembu said the Blended Finance Scheme is an essential instrument for transforming South Africa’s agricultural sector, but warned that its impact would remain limited unless funding shortages, weak oversight and operational inefficiencies are addressed.
“AFASA is committed to working with all stakeholders to ensure that the scheme delivers on its promise of commercialising black farmers and transforming the agricultural sector,” he said.
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