Emerging Farmer Support Services R15M

User Manual: R15M

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EmergingFarmerSupportServices
Inordertomakeasuccessofhis/hernewfarmingventure,anemergingfarmerrequiresthefollowing
supportstructures:a)Accesstolandandrelatedresourceslikewater;b)Accesstoinformationand
extensionservices;c)Accesstofinance;andd)Accesstomarkets.Thiswillfocusfinanceandland.
PACKAGEA:FINANCIALSUPPORTSERVICES
InstitutionPackagesummaryContact
details
Website
TheLandBank.
TheLandBankhasvarious
termloansforagriculture.
Thesearelongtermmortgage
loan,mediumtermloansand
shorttermloans.Theyare
meanttofinanceland
purchases,implementsand
productioncostsrespectively.
Thetermrangefrom18
monthsto15years.
012 686 0500
0800 00 5259
http://www.landbank.co.za
SmallEnterpriseFinance
Agency(SEFA):LandReform
EmpowermentFacility.
TheLandReform
EmpowermentFacilityisa
wholesalefinancingfacility,
meaningDSEFAlendsmoney
tocommercialbanksand
otherlendersforonlending
tolandreformbeneficiaries.
Loansinclude:Mortgage
R15mupto12years
repayment,EquityShare
SchemeR1mper
beneficiaryupto12years
repayment,ProductionLoans
uptoR500000per
productioncyclewith10%
owncontributionupto18
yearsrepaymentand
AgriculturalAssetFinance
R800000perfarmerupto5
yearsrepaymentperiod.
086000 7332 http://www.sefa.org.za
NationalEmpowerment
Fund(NEF):Ruraland
CommunityDevelopment
Fund.
RuralandCommunity
DevelopmentFundwas
designedtopromote
sustainablechangeinsocial
andeconomicrelationsand
supportingthegoalsof
growthanddevelopmentin
theruraleconomy,through
011 305 8000
0861 843 633
http://www.nefcorp.co.za
financingofsustainable
enterprises.Thiswouldbe
achievedthroughthe
mobilizationofrural
communitiesinlegalentities
orcooperatives,inorderto
participateinthebroader
economicactivitiesand
realizetheeconomic
transformationgoalsinrural
SouthAfrica.Thefundhas
fourproducts:Project
Finance,BusinessAcquisition,
ExpansionCapitalandStart
up/Greenfieldswiththe
fundingthresholdranging
fromaminimumofR1million
toR50million.Thesectors
coveredprimaryand
secondaryagriculture,agro
processing,agroforestry.
Minimum25,1%black
ownershiprequiredwithup
to10yearsrepayment.
IndependentDevelopment
Trust(IDC).Agro
Industries
TheIDC'sAgroIndustries
StrategicBusinessUnit
providessupportforawide
rangeoffoodandnonfood
productionactivitiesinthe
agriculturalvaluechain. The
projectsmustcreatejobsand
fundingminimumisR1m.no
primaryagriculturefundingis
considered,onlyagro
processing.
0112693000
086069888
http://idc.co.za/
TheJobsFund.
TheobjectiveoftheJobs
Fundistocofinanceprojects
bypublic,privateandnon
governmentalorganizations
thatwillsignificantly
contributetojobcreation.
Thisinvolvestheuseofpublic
moneytocatalyzeinnovation
andinvestmentonbehalfofa
rangeofeconomic
stakeholdersinactivities
whichcontributedirectlyto
enhancedemployment
0861003272http://www.jobsfund.org.za
creationinSouthAfrica.
TheDepartmentofRural
DevelopmentandLand
Reform:RecapProgram
Therecapitalizationand
DevelopmentProgramis
aimedat:
LandReformbeneficiaries.
LandReformfarmswith
mortgagecomponent.
Emergingfarmerswho
purchasedfarmsprivately.
Irrigationschemesandfarms
oncommunalareas.
Fundingwillbebasedona
comprehensivebusinessplan
onaslidingscaleoverfive
years.Astrategicpartner
formspartofthefunding
structure.
012 312 8911
0800 007 095
http://www.dla.gov.za
OldMutual:Masisizane
Fund.
Themandateofthe
MasisizaneFundisto
contributetoemployment
creation,reductionof
inequality,economicgrowth
andattractionofinvestment
toSmall,MediumandMicro
Enterprisedevelopmentand
promotionof
entrepreneurship.
Thefundcatersfor
agricultureandagro
processingamongstothers
togetherwithothernon
financialsupportserviceslike
capacitybuilding.The
maximumisR10movera5
yearrepaymentperiod.
0112171854http://www.oldmutual.co.za
MicroAgriculturalFinancial
InstitutionsofSouthAfrica
(MAFISA).
MAFISAwasestablishedin
2004tofacilitatethe
provisionofequitableand
largescaleaccesstofinancial
servicesbyeconomically
activeruralpoorcommunities
onanaffordable,diversified
andsustainablebasis.The
mainintentionofMAFISAis
toprovidecapitalinorderto
012 319 6000 http://www.daff.gov.za/
increasesupporttoeconomic
activitiesinthesector
throughoutthevaluechain
withparticularfocuson
communallandareasand
othersmallscaleproducersas
wellastherelatedvalue
additionactivities.MAFISA
providesshorttomedium
termproductionloan,savings
mobilization,micro
enterpriseinsuranceand
capacitybuildingformember
basedfinancialinstitutionsto
enhanceagricultural,forestry,
andfisheriesactivities.
ItcanlenduptoR500000
overarepaymentperiod
rangingfrom12to60
months.
TheDepartmentofTrade
andIndustries(TheDTI).
TheDTIprovidesfinancial
supporttoqualifying
companiesinvarioussectors
oftheeconomy.Financial
supportisofferedforvarious
economicactivities,including
manufacturing,business
competitiveness,export
developmentandmarket
access,aswellasforeign
directinvestment.
086 184 3384 http://www.thedti.gov.za
ABSA:AgriBusiness
Pleaseenquirefromthebank.011 350 6854 http://www.absa.co.za
StandardBank:Agriculture
Pleaseenquirefromthebank.011 636 6162
0860 109 075
http://www.standardbank.c
o.za
FirstNationalBank(FNB):
AgricultureLending
Solutionsandothers.
Pleaseenquirefromthebank.0860 362 000
https://www.fnb.co.za
Nedbank:AgribusinessPleaseenquirefromthebank.011 710 4000
0860 555 111
http://www.nedbank.co.za
BusinessTrustVumelanaprovidesfundingto
advisorswhohelp
communitiesandinvestorsto
establishcommercial
partnershipsforthe
developmentoflandthatfalls
underSouthAfrica'sland
reformprogram.
011 612 2000 http://vumelana.org.za
ProvincialEconomic
DevelopmentCorporations
like:
IthalaDevelopmentFinance
Corporation,(KZN).
MpumalangaEconomic
GrowthAgency(MEGA).
EasternCapeEconomic
DevelopmentCooperation.
LimpopoEconomic
DevelopmentAgency
(LEDA).
NorthWestDevelopment
Corporation(NWDC).
GautengGrowthand
DevelopmentAgency
(GGDA).
FreeStateDevelopment
Corporation(FDC).
NorthernCapeEconomic
Development,Tradeand

0 31 907 8911
013 752 2440
0437045600
0183813663
0110852400
0514000800
053 833 1503
http://www.ithala.co.za
http://www.mega.gov.za/
http://www.ecdc.co.za
http://www.nwdc.co.za/
http://www.ggda.co.za
http://www.fdc.co.za
http://www.nceda.co.za/
InvestmentPromotion
Agency(NCEDA).
PACKAGEB:ACCESSTOLANDANDRELATEDRESOURCES
DepartmentofRural
DevelopmentandLand
Reform(DRDLR).
ProactiveLandAcquisition
Strategy(PLAS).
PLASfocusesprimarilyonthe
poorandisbasedonthestate
proactivelypurchasedland
withhighagricultural
potential.TheDepartment
thenselectsbeneficiarieswho
canleasethelandwiththe
optiontopurchasetheland.
LandRedistributionfor
AgriculturalDevelopment
(LRAD).
Thisprogramisajointventure
withtheDepartmentof
Agriculture.Throughthis
programqualifying
beneficiariesmayacquireland
foragriculturalpurposes.
012 312 8911
0800 007 095
http://www.dla.gov.za
Commonages.
Thecommonageproductaims
atimprovingpeople’saccess
tomunicipallandfor
agriculturalpurposes.
FarmEquitySchemes.
Thisisanarrangementwhere
participantspurchaseequity
intheformofsharesinland
basedenterprise.Participants
receivereturnsintheformof
dividendsandcapitalgrowth.
SettlementProductionLand
AcquisitionGrant(SPLAG).
TheSettlementand
ProductionLandAcquisition
Grant(SPLAG)isagrantto
provideforbothsettlement
andagriculturalproduction
landneedsofpeopleliving
and/orworkingonruralland.
Inthiscontext,ruralland(land
outsideproclaimedtowns)
alsoreferstofarmland.
TheSettlementProduction
LandAcquisitionGrant
(SPLAG)willcaterforboth
settlementandagricultural
productionpurposes.

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