Pretoria:The Department of Agriculture, in coordination with the Department of Land Reform and Rural Development, National Treasury, and the Land Bank, has been tasked with addressing the temporary pause on new applications for the Blended Finance Scheme. This scheme, crucial for funding operations, was put on hold by the Land Bank.
According to South African Government News Agency, President Cyril Ramaphosa and Minister Willie Aucamp met on September 29, 2026, to emphasize the urgency of resolving this issue. During the meeting, Minister Aucamp informed the President of ongoing discussions between the Department of Agriculture and the Department of Land Reform and Rural Development aimed at mitigating the shortfall caused by high demand.
The Ministry of Agriculture announced on Friday that an additional R150 million has been committed by the Department of Agriculture, supplementing the R325 million grant already allocated to the Land Bank for the 2026/27 financial year. Discussions with the Land Bank continue to ensure the careful management of the Blended Finance Scheme and to prevent future disruptions that could leave farmers without necessary funding.
Minister Aucamp has received multiple letters expressing concern about the funding pause and its impact on farmers. He assured stakeholders that efforts are being made by the Department of Agriculture and other governmental bodies to quickly resolve the issue, emphasizing that the scheme has not been discontinued and funding gaps should not occur.
The Land Bank, in the meantime, is offering 100% loan funding for the agriculture sector, allowing farmers to continue their operations. Minister Aucamp underscored the importance of ensuring that farmers receive the funding needed to begin planting, and confirmed that discussions with all relevant departments are being treated as a priority.
In the department's Budget Vote presentation in May, it was highlighted that the Blended Finance Scheme has supported over 14,000 jobs, with approximately 7,869 jobs facilitated through the Industrial Development Corporation and over 6,480 via the Land Bank.