Stutterheim:President Cyril Ramaphosa has urged the expansion of successful agricultural enterprises like Redlands Dairy Farm to boost land reform, job creation, and inclusive growth in South Africa's rural economy. During a visit to the black and youth-owned farm in Eastern Cape, he emphasized the importance of combining land access with finance, skills, mentorship, and partnerships.
According to South African Government News Agency, President Ramaphosa highlighted Redlands Dairy Farm's success resulting from the Land Bank's Blended Finance Scheme, which combines government grants with loans to support sustainable agricultural investments. He stressed that aspiring farmers need more than just land access and recognized the role of established farmers in mentoring newcomers.
The President noted that access to finance is crucial for transitioning from subsistence to commercial farming. He acknowledged the challenges emerging farmers face in securing loans due to a lack of assets and collateral, which keeps them at subsistence levels. He suggested blended finance as a solution for expanding farming operations.
Launched in 2022, the Blended Finance Scheme is a decade-long initiative aimed at supporting black producers and advancing agricultural transformation. President Ramaphosa called for sustainable funding solutions to meet the strong demand for the scheme and to ensure the Land Bank's financial sustainability.
He also pointed out agriculture's significant potential to create jobs and stimulate economic growth. The government is releasing 2.5 million hectares of land to black farmers, increasing the need for affordable capital. Ramaphosa called on finance institutions to leverage government support to mobilize additional capital from various sectors.
Furthermore, President Ramaphosa emphasized the importance of expanding domestic and international market access for emerging farmers and called for agricultural transformation beyond production to include processing and distribution. He noted agriculture's role in addressing poverty and unemployment, particularly in provinces like the Eastern Cape.
The President congratulated Redlands owner Tshilidzi Matshidzula and thanked the Land Bank, government departments, and other partners for supporting agricultural transformation. He concluded by advocating for a competitive and inclusive agricultural sector contributing to South Africa's food security and economic prosperity.
