Parliament’s Portfolio Committee on Agriculture has raised fresh concerns about the performance of the Blended Finance Scheme (BFS), questioning whether government support intended to commercialise black farmers is delivering sustainable results.
The concerns emerged during a briefing to the committee recently from the Department of Agriculture and the Land and Agricultural Development Bank of South Africa (Land Bank) on progress made in implementing recommendations arising from the committee’s 2025 oversight visit to the North West Province.
While both institutions reported improvements on oversight, monitoring and farmer support, Members of the committee repeatedly pressed officials on funding delays, distressed projects, weak post-investment support and the slow pace of interventions at farms that were found to be struggling during the oversight visit.
At the centre of the discussion was the Blended Finance Scheme, a programme that combines government grants and loan funding to support the commercialisation of black farmers. During its visit to North West earlier this year, the committee encountered several beneficiaries facing operational, financial and management challenges, despite having received support through the programme.
Ms Elder Mtshiza, Chief Director for Comprehensive Farmer Support in the Department of Agriculture, told the committee that the department has strengthened monitoring and reporting systems and improved coordination with the Land Bank. She said the revised BFS remains aligned with the Agriculture and Agro-processing Master Plan and continues to focus on expanding the participation of black producers in commercial agriculture.
Ms Mtshiza told committee members that the department and Land Bank have undertaken joint monitoring visits to funded projects, introduced stronger pre- and post-funding support measures and were working to improve awareness of available agricultural support programmes.
Acting Land Bank Chief Executive Officer Mr Jabu Mphambo reported that the bank has completed the first phase of re-engineering its loan approval processes and was preparing to implement technology solutions aimed at reducing turnaround times for funding applications. Mr Mphambo also provided updates on projects that featured prominently during the committee’s oversight visit, including Ditaung Agricultural Cooperative and M-Way Trading. He said funding restructuring and turnaround interventions were being considered to improve the sustainability of these operations. Despite these assurances, committee members questioned whether enough has changed since the oversight visit.
Several MPs expressed concern about delays in disbursing approved funds, challenges in accessing technical support and mechanisation, and the continued vulnerability of farmers who rely on government-backed financing to sustain production. MPs also sought clarity on the monitoring of funded projects and the effectiveness of support provided after funding has been approved.
Questions were further raised about debt restructuring processes, accountability for underperforming projects and whether public funds invested through the scheme are producing the intended developmental outcomes. The committee also highlighted broader challenges facing emerging farmers, including rising input costs, energy constraints, access to water, market access barriers and difficulties in obtaining finance for expansion.
Committee Chairperson Ms Dina Pule said Parliament’s concern extends beyond the approval of funding to the long-term success of farmers supported through government programmes. “Our oversight visit identified serious challenges affecting some of the projects supported through the Blended Finance Scheme. While we acknowledge the progress reported by the department and the Land Bank, the committee expects to see measurable improvements in project performance, farmer support and accountability. The real test is whether these interventions result in sustainable farming enterprises, jobs and economic opportunities for rural communities,” said Ms Pule.
The committee welcomed commitments by both institutions to strengthen monitoring, improve coordination and provide additional support to distressed projects. However, MPs indicated that Parliament would continue to closely monitor implementation of the recommendations arising from the North West oversight visit.
The briefing forms part of the committee’s ongoing oversight of government programmes aimed at supporting agricultural development, transformation and food security.
Temba Gubula
8 June 2026
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