Absa and AGDA push for greater financial inclusion in SA agriculture
Leona Archary, CEO of AGDA, highlighted the need to move from identifying challenges to co-designing actionable solutions. "While the sector has significant potential for growth, the financing landscape is often fragmented. Many programmes operate in silos, and there is limited coordination between policy objectives and commercial financing realities.
"We need to align with public and private funding streams, and develop mechanisms that make agricultural finance more inclusive, innovative, and responsive to the realities of farmers on the ground," said Archary.
Absa’s role in supporting agricultural growth
Sanah Gumede, managing executive for strategy and customer value management at Absa Business Banking, emphasised the bank’s commitment to the sector. "Agriculture remains a critical part of our economy, contributing to food security, job creation, and development," she said. Gumede noted that while initiatives abound, new agripreneurs often struggle to access growth finance when ready to scale. "This is not due to a lack of potential, but reflects the need for better alignment, financial readiness, and long-term support."
She also called for closer collaboration across the agricultural value chain. "The task demands cooperation between banks, development finance institutions, government, private sector, large agribusinesses, and smallholder farmers. Building trust between policymakers and practitioners is essential," Gumede said.
Addressing financing gaps for emerging farmers
Dr Langelihle Simela, Business Development Manager at Absa Business Banking, outlined persistent gaps in funding for developing farmers, particularly around governance, financial readiness, and structured funding pathways. "Without appropriate financial statements or a track record of their activities, it’s challenging to present a credible case for financing," Simela noted.
She explained that most new-entrant agri-entrepreneurs start with self-funding before progressing to external support, including angel investors, venture capital, and eventually bank financing once profitable. Simela stressed the importance of formalising agri-businesses to access higher-level funding. “A client is ready to scale up when their business is formalised and can sustain debt while meeting all bank requirements.”
Masiphula Mbongwa, policy advisor and former director-general of agriculture, highlighted institutional investors as a potential new funding source for agriculture, calling for structured deployment to complement public and private financing streams.
The need for a supportive ecosystem
Elder Mtshiza, programme manager at the Department of Agriculture, reflected on South Africa’s blended finance model, noting progress despite funding constraints. "Have we made progress? Yes, we have, though it has been limited by available funding.
"We’ve reached agreements with various banks, but couldn’t finalise them due to insufficient funds, especially given the country’s current financial constraints. Still, everyone recognises that blended finance works.”
Mtshiza emphasised that empowering farmers requires more than financing. “Farmers often lack all the knowledge and expertise they need. Development partners are essential to provide education, mentorship, coaching, farm assessments, planning, execution, record-keeping, market intelligence, and support with negotiations,” she said.
Althea Discala, CEO of Discala Holdings, echoed the need for a robust ecosystem. "Greenfield farms or start-up operations have to wait years for profitability,” she said, adding that working capital and targeted support are essential for scaling. “There needs to be less stringent requirements from the banks. How do we collaborate? You need to have an ecosystem, and each part of the value chain needs to be funded separately."
Outcomes and recommendations
The dialogue concluded with four thematic breakaway sessions addressing funding gaps, climate resilience financing, enterprise growth, and enabling policies.
Each group developed recommendations to inform the funding framework for the Agriculture and Agro-Processing Master Plan (AAMP).