The Department of Land Reform and Rural Development will provide R500m in grant funding to the Land Bank’s Blended Finance Scheme for qualifying emerging and developing farmers for the remainder of the 2026/27 financial year.
The Land and Agricultural Development Bank of South Africa (Land Bank) and the Department of Land Reform and Rural Development (DLRRD) have signed a memorandum of agreement (MoA) covering the additional funding.
The grant will be combined with Land Bank loan finance to reduce the overall financing burden on qualifying farmers and agricultural enterprises. The Blended Finance Scheme (BFS) is designed to help eligible beneficiaries invest in productive assets and develop their agricultural operations.
The DLRRD funding adds to support already provided by the Department of Agriculture, which has been a government partner in implementing and funding the scheme.
Funding follows demand for blended finance
By the end of the 2025/26 financial year, approximately 540 clients and beneficiaries had received support through the BFS, according to Land Bank. Demand for the scheme had substantially exceeded the grant funding available.
Land Bank had temporarily paused accepting and considering new applications for the remainder of the 2026/27 financial year while prioritising available grant resources for existing commitments.
The announcement does not specify when new applications will resume or how many additional farmers the R500m is expected to support.
Land Bank and department outline funding
Land Bank acting chief executive officer Jabu Mphambo said the agreement would strengthen cooperation between government and the development finance institution.
“Access to affordable and appropriate finance remains an important enabler of agricultural transformation. We welcome DLRRD’s support and partnership in the Blended Finance, which builds on the important support already provided by the Department of Agriculture and strengthens our collective ability to respond to the significant demand for developmental agricultural finance. Through partnerships of this nature, we can leverage the respective capabilities and resources of the government and Land Bank to support sustainable agricultural enterprises that can grow, create employment, strengthen rural economies and contribute to food security.”
Minister of Land Reform and Rural Development Mzwanele Nyhontso said land reform beneficiaries needed financial support to use their land productively.
“Land Reform cannot succeed on the transfer of land alone. Farmers who receive land must also have the means to work it productively, and for too many emerging and developing farmers the cost of finance has stood between them and a viable agricultural enterprise. This partnership with Land Bank directs public resources to close that gap. By combining grant funding with Land Bank lending, we are lowering the barrier to entry for historically disadvantaged producers and giving them a fair opportunity to participate meaningfully in the mainstream agricultural economy”, said the Minister.
Land Bank, the Department of Agriculture and DLRRD will continue to work together on access to finance for qualifying farmers.
