Access to finance remains one of the biggest barriers facing new farmers. Although government and financial institutions continue to expand funding opportunities, farmer and businessman Tshedi Molatedi says success depends on far more than completing an application form.
By Talitha Janse van Vuuren, multimedia editor at African Farming
“Keep knocking on doors.” That is what Tshedisegang “Tshedi” Molatedi told attendees at African Farming’s Finance for Farmers Workshop in Worcester in the Western Cape on 16 June 2026. Drawing on his own experience of entering commercial agriculture, he spoke about the realities that young farmers face when trying to secure funding, and why persistence is often just as important as a good business proposal.
The right opportunity
The first challenge is identifying the right opportunity, Molatedi said. You need to know exactly what you want to do, and finding the right piece of land is key.
Equally important is finding the right commercial partner. Such a partnership is invaluable because it provides experience, mentorship and credibility throughout the financing process.
Waiting can become expensive
One of the things about the funding process that surprised Molatedi the most was how long it could take.
His own application took more than two years, he said. The delay wasn’t necessarily because anything had gone wrong. The funding programme itself was relatively new, and his application formed part of the first batch being processed. Still, those two years came at a cost.
He had to pay rent to the previous owner while waiting for the funding process to be completed, before he could officially take ownership of the farm.
By the time ownership was transferred, significant expenses had already been incurred.
Also read: ‘R92 million for black farmers and there’s more to come’ – Kgodiso Development Fund
Then came the hailstorm
The business faced another major setback almost immediately. “Our first season… our tomato crop was devastated by a severe hailstorm. It resulted in a huge loss of income,” Molatedi said.
For any farming business, suffering a production disaster during its first season is a major financial blow. For a business that had already spent two years trying to access finance, the impact was even greater. “It was probably the worst way to start off a business.”
Farming requires capital
One of the realities Molatedi emphasised throughout his presentation was that agriculture demands continuous investment. Unlike other businesses where purchases can sometimes be delayed, farming operations often require spending at very specific times.
“When it’s time to plant, you plant. If it’s time to apply fertiliser or chemicals, it has to happen.”
Missing those production windows can have serious consequences for yields and profitability. That is why access to working capital remains so important. He explained that securing production finance often means approaching multiple institutions while simultaneously managing existing financial commitments.
“You have to knock on doors just to access further capital to finance your production expenses.”
Also read: Patient capital critical to unlocking agricultural finance
Funding is not guaranteed
Molatedi cautioned farmers against assuming that one application will automatically lead to approval. And simply submitting paperwork and waiting is rarely enough. The responsibility lies with the applicant to remain engaged throughout the process.
“If you know you have an application there, be the first one at the door. Whether it means you have to be there every other day, you need to keep following up with the people handling your application. Knock on those doors and ask for feedback,” he said.
Preparation is important
Persistence alone, however, is not enough. Molatedi stressed that applicants must in the first place submit complete and accurate documentation.
“Go through the application, and make sure you’ve submitted all the required documents.” Incomplete applications create unnecessary delays and give funders reasons to put files aside while waiting for additional information.
Compliance, he said, is equally important, because financial institutions themselves operate under strict regulatory requirements. “You don’t want to give them any reason to discard your application.”
Also read: Beyond funding: Building black farmers, businesses and the future of South Africa’s food system
Confidence counts
When an applicant is invited to do a presentation about their business, they should be prepared to explain every aspect of the enterprise confidently, Molatedi said. “You need to be the one telling them about your business.”
Commercial partners and consultants play important roles, but funders want to hear directly from the applicant. “If the commercial partner is the one leading the discussion, it lowers your chances.”
Applicants should understand their financial projections, production plans and business strategy well enough to answer questions themselves.
Also read: AFASA supports calls for blended finance scheme reform
First impressions matter
Presentation also influences how funders perceive an applicant. Molatedi encouraged farmers to present themselves professionally and confidently. “If you’re standing in front of people, they must see that you’re serious.”
Professionalism, he believes, reflects commitment.
Even relatively simple details, such as appropriate business attire or branded clothing, can help create a positive impression. “It’s those small things that make a good impression.”
Persistence is key
Funding applications are rarely straightforward. There will be delays. There will be setbacks. There will often be reasons to become discouraged.
Reflecting on his own experience, Molatedi said it taught him that determination often makes the difference. “If you really want something, you need to go the extra mile.”
He said persistence remains one of the most valuable qualities any aspiring farmer can develop. “The person who does this best is my brother Kagisho. He’ll call three times a week if he has to. People complain about it, but that’s his job.”
For farmers seeking finance, the paperwork may open the door – but persistence is often what gets them through it.
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Parliament sounds alarm over Land Bank Blended Finance Scheme funding gap
Land Bank defends Blended Finance Scheme as demand outstrips funding
