Gauteng, Mpumalanga and Free State Provinces
Background
The AFASA Grains Commodity Chamber has been supporting grain farmers through consortium and commercialisation models aimed at assisting black farmers to access production finance and expand their farming operations. The outcomes of the Land Bank application process over the past three years raise serious concerns regarding the effectiveness of the current development finance model.
Free State Province – 2024
Through the AFASA Grains Consortium Model:
- 20 farmers submitted applications.
- 14 farmers successfully passed the credit assessment stage.
- Only 2 farmers received final approval.
These outcomes were extremely disappointing and highlighted the limited developmental impact of the current financing approach in supporting black grain farmers.
Mpumalanga Province – 2025
- 10 farmers submitted applications.
- 6 farmers progressed to the second and final stages of assessment.
- No farmer received approval.
These applicants were not inexperienced or emerging producers. They were semi-commercial black farmers with:
- Full mechanisation capacity.
- Proven production records.
- Access to productive agricultural land.
- Farming operations exceeding 1,000 hectares in some cases.
The failure to approve any of these farmers represents a significant setback to agricultural transformation and limits the growth of black commercial grain producers.
Free State Province – 2025
- 20 farmers submitted applications.
- 16 farmers passed the credit assessment stage.
- Only 3 farmers received final approval.
- Two approved farmers are still awaiting disbursement from the previous production season.
This outcome was once again disappointing and demonstrates how delayed disbursements negatively affect production planning, operational efficiency, and long-term sustainability.
Gauteng Province
One farmer reapplied for funding with the support of AFASA Grains.
- Approval was eventually secured after extensive engagements and advocacy.
- Disbursement only took place in February, after the planting season had closed.
- The farmer had spent more than three years attempting to secure approval despite operating a viable farming enterprise.
This case illustrates the significant barriers farmers continue to face in accessing development finance, even when they meet the required criteria.
2026 Applications Currently in Progress
AFASA Grains is currently coordinating funding applications in the following provinces:
| Province | Number of Farmers |
|---|---|
| Free State | 30 |
| Mpumalanga | 15 |
| Gauteng | 8 |
| North West | 5 |
| KwaZulu-Natal | 5 |
| Limpopo | 5 |
While the application process is ongoing, AFASA believes that proactive engagement and advocacy will be necessary to achieve improved outcomes for black grain farmers.
Key Observation
The primary challenge is not business plans, compliance requirements, technical expertise, or farmer commitment.
The fundamental challenge lies within a financing system that is not sufficiently transformative or developmental in its approach.
Many capable black farmers continue to be excluded from meaningful access to production finance despite demonstrating commercial viability and meeting key funding requirements.
Recommendations
- Government should consider expanding the management of blended finance programmes beyond traditional commercial finance institutions.
- Blended finance resources should be allocated to specialised development agencies with a clear transformation mandate, similar to the Eastern Cape Agricultural Development Agency model.
- Government should explore the establishment of a National Agricultural Development Agency capable of administering both grant and loan funding.
- Farmer organisations such as AFASA should be represented within governance structures responsible for overseeing transformation and development funding.
- Development finance programmes should be designed around agricultural realities and production cycles rather than conventional commercial banking models.
Conclusion
South Africa cannot achieve meaningful agricultural transformation while development funding programmes remain largely dependent on systems that are not designed to accommodate the realities of black farmer development.
The AFASA Grains Commodity Chamber believes that a new developmental funding model is required—one that combines grants, concessional loans, mentorship, technical support, and long-term farmer development.
The Grains Commodity Chamber will submit a formal position paper to the CEO following consultations with all Provincial Grains Champions by Friday.
