Nokwanda Dlangamandla | kzn@radioislam.org.za

4 min read | 22:00

Landbank.co.za

The Land Bank introduced a three-year, R1.95 billion blended finance program on Monday. The bank introduced the blended finance program in 2018 but later experienced financial difficulties, entering debt default in April 2020, following which they temporarily stopped providing loans.

The Land Bank, a state-owned institution, resumed financing on Monday – a blended finance program that will invest R1.95 billion over the next three years in helping new farmers become profitable.

Ms Thoko Didiza Minister of Agriculture, Land Reform, and Rural Development launched an R3.2 billion blended finance program with Land Bank to help farmers. According to Didiza, the department and Land Bank have each committed R325 million per year, effectively developing an R650 million fund. By the third year, the fund will have reached R1.95 billion.

Duncan Masiwa, Head of News at Food for Mzansi, spoke with Radio Islam International on the R3.2 billion Blended Finance Scheme intended to help farmers, particularly black farmers.

According to Masiwa, the land bank is open and accepting applications from farmers. Small-scale and newly developing farmers, especially those without land ownership, have few options when seeking credit in the commercial banking sector. Masiwa claims that the goal of this alliance is to aid in the growth of small and medium-sized farmers, so they may take part in the agricultural economy at large and all along the agricultural value chain.

Grants, however, shall be given under the predetermined Department of Agriculture, Land Reform, and Rural Development eligibility requirements.

Listen to the interview with Duncan Masiwa, Head of News at Food for Mzansi, with Junaid Kharsany on The Daily Round-Up.