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MEC Kontswe has announced a significant investment to support black commercial farmers in the Eastern Cape, with R75 million allocated to the Eastern Cape Agriculture Blended Funding Scheme.
This initiative, launched by the Department of Rural Development and Agrarian Reform (DRDAR), aims to provide access to finance for black farmers to become commercial and participate in value chains. In the previous financial year, R32 million was distributed to 18 agricultural enterprises, creating 455 jobs.
The department has partnered with the Eastern Cape Rural Development Agency (ECRDA), Eastern Cape Development Cooperation (ECDC), Small Enterprise Finance Agency (SEFA), and Land Bank to provide blended finance solutions.
Key highlights of the initiative include:
- R25 million budget for 2024/25
- Collaboration with Land Bank to access R300 million allocation for Eastern Cape farmers
- Commodity Revolving Credit Facility for export-oriented commodities (R4 million budget)
- Pilot projects for grains, wool, mohair, citrus farming, dairy, vegetables, and livestock.
MEC Kontswe emphasized the government’s commitment to supporting black commercial farmers, stating that this funding will enable businesses to invest in equipment, infrastructure, and production inputs, enhancing their revenue.
This investment is expected to boost the competitiveness of Eastern Cape farmers, create jobs, and contribute to the growth of the local economy.
