Parliament, Wednesday, 3 June 2026 - The Portfolio Committee on Agriculture has expressed serious concern over the sustainability of the Blended Finance Scheme, warning that funding shortages, weak oversight capacity, delays in disbursements and the over-commitment of available funds by the Land Bank threaten the programme’s ability to support the commercialisation of black farmers and advance transformation in the agricultural sector.
The committee stressed that urgent intervention is required to ensure that public funds produce measurable developmental outcomes and sustainable farming enterprises.
The concerns were raised on Tuesday during a briefing from the Department of Agriculture, the Land Bank and associated stakeholders on the implementation and performance of the Blended Finance Scheme, including progress made in responding to recommendations previously adopted by Parliament following the 2025 oversight visits to funded projects in the North West province.
“While the committee welcomes efforts by the department and the Land Bank to improve governance, strengthen pre- and post-funding support, and address challenges identified during oversight visits, we want to stress that our interest is not in the volume of loans approved or grants disbursed, but in the outcomes achieved through public investment,” said committee Chairperson Ms Dina Pule.
She emphasised that the success of the scheme must be measured by the commercialisation of emerging black farmers, transformation of the agricultural sector, job creation and food security.
The committee also raised concerns about the performance of several projects previously visited during oversight, including Ditaung and Emway Trading, and questioned whether adequate due diligence had been undertaken before funding approvals were granted. Members further sought assurance that beneficiaries receive appropriate technical support, mentorship and market access to enable sustainable commercial farming operations.
Particular concern was expressed regarding the growing demand for blended finance support against the limited funding available. The committee noted that the scheme requires approximately R1.5 billion annually to meet demand, yet only R613 million has been allocated for the 2026/27 financial year. Members also noted concerns about the Land Bank’s over-commitment of available funds and warnings that no new approvals should be made during the 2026/27 financial year until funding challenges have been addressed. The committee further highlighted the urgent need to strengthen capacity for oversight and monitoring of funded projects.
Members questioned the competitiveness of Land Bank interest rates and whether they are aligned with the developmental objectives of the scheme. The committee reiterated calls for stronger state support and recapitalisation of the Land Bank to enable it to provide affordable finance to emerging farmers and support broader transformation objectives.
The committee also raised concerns about delays in the disbursement of approved funding, noting that several farmers have reported receiving support after planting seasons have passed, thereby undermining productivity and increasing financial risk. Members sought clarity on measures being implemented to improve turnaround times and strengthen project management.
A number of committee members highlighted the need for transformation throughout agricultural value chains and not only at farm level. Questions were raised regarding the extent to which public funds are contributing to racial and gender transformation among processors, exporters, off-takers and other participants in agricultural value chains.
The committee further called for enhanced support for agricultural graduates and young people seeking entry into the sector, including access to finance, mentorship, business incubation and land. Members emphasised that the country cannot afford to leave thousands of trained agricultural graduates unemployed while emerging farming projects continue to face technical and management challenges.
Concerns were also raised regarding communal farming projects, access to mechanisation, climate-related risks, insurance coverage, the impact of load shedding and the burden of regulatory compliance requirements on emerging farmers. Members stressed the importance of coordinated government support to remove barriers that continue to impede transformation and growth in the sector.
The committee welcomed reports that some projects have shown signs of recovery and improved performance following intervention by the department and the Land Bank. However, committee members maintained that public funds must be accompanied by stronger accountability measures, regular reporting and demonstrable outcomes that can be independently verified through oversight.
The committee expects detailed written responses on matters raised during the engagement and will continue to exercise rigorous oversight over the implementation of the Blended Finance Scheme to ensure that public resources contribute meaningfully to agricultural transformation, inclusive growth, job creation and food security.
ISSUED BY PARLIAMENTARY COMMUNICATIONS ON BEHALF OF COMMITTEE CHAIRPERSON, MS DINA PULE
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