Scribd
Upload
14 views4 pages

Blended Finance brochure

The Blended Finance Scheme (BFS) aims to commercialize development farmers and enhance participation of black producers in agricultural value chains. The Land Bank provides tailored financial solutions to support small to large scale producers in agriculture and agro-processing, focusing on sustainability and growth. The program has specific exclusions and qualifying criteria, including ownership requirements and economic benefits scorecard for grant eligibility.

Uploaded by

gumroadhelp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
14 views4 pages

Blended Finance brochure

The Blended Finance Scheme (BFS) aims to commercialize development farmers and enhance participation of black producers in agricultural value chains. The Land Bank provides tailored financial solutions to support small to large scale producers in agriculture and agro-processing, focusing on sustainability and growth. The program has specific exclusions and qualifying criteria, including ownership requirements and economic benefits scorecard for grant eligibility.

Uploaded by

gumroadhelp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

A N CE

D FI N
N D E F S)
B L E ( B
C H E ME
S

BLENDED FINANCE SCHEME (BFS)


BLENDED FINANCE SCHEME (BFS):
BFS is a blended finance programme, established in partnership with the Department of Agriculture, Land Reform
and Rural Development (DALRRD) to commercialise development farmers with the objective to facilitate mean-
ingful participation of black producers and majority black owned enterprises owning and controlling the agricultural
value chains.

ABOUT LAND BANK


The Land and Agricultural Development Bank of South Africa is a specialist agricultural bank that offers tailor made
financial solutions for our valued clients to enable farmers to finance land, equipment, asset acquisition and improve-
ments including short-term and production credit facilities. Our value added services include insurance, business
development and support services. As a development finance institution, we leverage funding from public and
private sector partnerships to offer enabling funding solutions geared towards ensuring inclusivity, sustainability and
growth in the agricultural sector. In this regard, Land Bank is committed to sustainable finance and development and
is a signatory to the United Nations Environment Programme Finance Initiative (UNEP FI) which fosters the
implementation of the Principles of Responsible Banking.

ABOUT THE PROGRAMME:

TARGETED PRODUCERS AT LAND BANK:


Small, medium and large scale producers in primary agriculture and agro-processing subsectors within the Land
Bank’s mandate. The fund seeks to support producers engaged in value chain and aggregation activities. The
objective is to assist projects to achieve sustainability and growth with priority given to projects with high
development impact.

SECTOR FOCUS
Targeted commodities in-line with the Agriculture and Agro-processing Master Plan and Aquaculture:
• Grains and Oilseeds.
• Fruits and Nuts.
• Livestock: Poultry, piggeries and red meat.
• Other Food Sectors / Agro-processing: Dairy, sugarcane, aquaculture and vegetables.
• Non-food Sectors: Wool and mohair.
• Industrial Crops: Cotton

EXCLUSIONS
• Politicians in public office (12 months cooling period).
• Employees of government and State-Owned Enterprises (24 months cooling period).
• Employees of all organisations serving as administrators of the scheme within credit providers.
• Special advisors for agricultural programmes (local, provincial and national).
• Foreign nationals and illegal immigrants.
• Part time producers (regardless of having a full-time farm manager or will appoint a farm manager).
• Foreign nationals and illegal immigrants.
• Politically Exposed Persons posing a reputational risk as identified through the credit provider’s lending
policies, including but not limited to Anti-Money laundering risk management and compliance policies.
• Distressed producers where the grant is required to settle the debt of distressed producers (at application
stage).
• Joint Ventures with farm workers where farm workers are not involved in the management of the operation.
• Joint ventures where targeted producers exercise less than 60% ownership and voting rights.
• Producers who have mismanaged previous government support.
• Applicants with no provision for farm worker profit sharing.

QUALIFYING CRITERIA
• South African citizens with a valid ID and/or registered business entity.
• Black owned and managed farming enterprises that are commercially viable in commodities prioritised in the
Agriculture and Agro-processing Master Plan (listed above) and Aquaculture.
• In the case of joint ventures, the non-black partner should have 40% but not less than 26% ownership in the
enterprise.
• Enterprises with 10% farm worker profit sharing.
• No debt takeovers, settlements or refinancing of facilities.

FUNDING SCOPE
• Acquisitions of primary agricultural land parcels and/or commercially viable agricultural sector value chain
operating entities (agri-businesses).
• Support to existing operations for expansion in production on privately owned or land reform farms (Brown
field and Greenfield operations).
• The purchasing of capital equipment and infrastructure (“CAPEX”).
• Working capital and/or production loan (“Production Facility”).
• Insurance pool provision for subsidisation of insurance cover for the applicable farmers (capped at a
maximum of 6% (six percent) of the total grant facility).

KEY PROGRAMME TERMS


• Applicant must meet the minimum criteria as stipulated by the economic benefits criteria scorecard from
DALRRD for the conditional grant and also qualify and be approved for loan funding.
• Applicant must also meet the Land Bank credit criteria regarding the debt portion.
• Conditional grant funding will be capped according to the maximum grant gliding scale limits as approved by
DALRRD which shall be determined at application stages based on the funding needs of the business.
• The conditional grant cannot be approved on a standalone basis, grant funding to be in conjunction with Land
Bank loan funding. Loans will be priced at market related rates.
• Assessment and approval processes for the BFS will follow approved Land Bank lending policies, products
and processes.

ABOUT THE ECONOMIC BENEFITS CRITERIA SCORECARD


A scorecard that allocates points to the Applicant for ownership and transformation, inclusivity, own contribution
through financial or non-financial means, employment creation, contribution to food security, sustainable develop-
ment, localisation and markets. Applicants will need to obtain a minimum of 20 points out of a total of 50 points
to qualify for the conditional grant.
CONTACT DETAILS
GAUTENG MPUMALANGA
Pretoria (Head Office) NELSPRUIT
Tel: (012) 686 0500 Tel: (013) 754 2400
Address: 272 West Avenue Lakefield Office Park, Building A, 1st Fax: (013) 752 6134
Floor, Die Hoewes, Centurion.
Address: 16 Ferreira Street, Nelspruit 1200

LIMPOPO Western Cape


POLOKWANE Cape Town
Tel: (015) 287 9840 / 015 230 0270 Tel: (021) 974 2200
Fax: (015) 287 9899 Fax: (021) 974 2210
Address: Moolpark 700 Building 27 Market Street, Corner Rabe Address: Belvedere Office Park, Block C, Pasita Road,
and Market Street Durbanville 7550

NORTH WEST eastern Cape


VRYBURG EAST LONDON
Tel: (053) 928 1700 Tel: (043) 706 8600
Fax: (053) 927 2952 Fax: (043) 721 0717
Address: 39 Market Street, Vryburg 8601 Address: Hammer Mill House, The Quarry Office Park,
Selbourne, East London 5241

FREE STATE Northern cape


BLOEMFONTEIN UPINGTON
Tel: (051) 404 1400 Tel: (054) 338 8400
Fax: (051) 447 7718 Fax: (054) 332 5731
Address: 78 St Andrew Street, Bloemfontein 9300 Address: 55 Schroder Street, Upington 8800

KWA-ZULU NATAL HOW TO APPLY TO THE LAND BANK


PIETERMARITZBURG
Visit our local branches;
Tel: (033) 845 9600
Log an enquiry via our website at www.landbank.co.za
Fax: (033) 845 9610 and contact provincial offices via our website at
Address: Office Suite A3, Maritzburg Arch, 39/45 Chief Albert https://landbank.co.za/Pages/Contact-Us.aspx
Luthuli Street, Pietermaritzburg 3201

You might also like