East London – On the 10th of November 2023, the Eastern Cape Rural Development Agency (ECRDA) and the Small Enterprise Finance Agency (SEFA) have partnered to launch a R75 million blended finance scheme to support farmers, agribusinesses, and rural enterprises in the Eastern Cape region.
The funding will be a combination of a loan and a grant and will be used to address the financing challenges faced by emerging agribusinesses in the region. The launch of the blended finance scheme follows a series of commodity dialogues held by the ECRDA from the 1st to 8th of November 2023 in East London at Invest-SA one stop shop, which started with Wool and Mohair, Cannabis, Grain, and ended with Potatoes.
The dialogues aimed to engage with farmers, agribusinesses, and other stakeholders in the agricultural sector to discuss challenges and opportunities in the industry. The partnership aims to support the development of small and medium-scale producers and increase their participation in the mainstream agricultural economy. The funding will be disbursed over the 2023/24 budget year, with ECRDA investing R25 million and SEFA investing R50 million.
“The estimated R75 million blended financial scheme represents a fusion of innovation and commitment, this approach is not just to address immediate financial needs but also to foster sustainability and resilience amongst Eastern Cape farmers and agri-businesses,” Interim Chief Executive Officer of ECRDA Gcinumzi Qotywa.
“Our sole purpose is building the Eastern Cape we want, was excited and deeply touched seeing the emerging of the premier in Germany on their route to Egypt driving investments and we are excited to continue with that programme,” SEFA Board member Motse Mfuleni.
The partnership between ECRDA and SEFA is set to ensure the success of the blended finance scheme. SEFA, as a government agency, provides financial support to small enterprises, while ECRDA, as a provincial government agency, focuses on rural development and agrarian reform. By combining their resources and expertise, the two agencies can provide comprehensive support to agribusinesses in the region.
Chief Executive Officer(CEO)from SEFA Mxolisi Matshamba expressed that farmers should come with projects that are realistic in working with and create a legacy that will give the youth employment even when we leave this sector, they will be proud that they started this project. “What’s painful is to see the youth that has graduated in agricultural studies not having any employment and start selling things online” he added.
Vuyiseka Majola acting Head of the Eastern Cape Department of Rural Development Agrarian Reform (DRDAR), “We are still confronted with transforming this sector and we will not be able with budget from government only, by forming this kind of partnership with the private sectors it will be critical that we expand, and we will be able to eat and live from their riches.”
The launch of the blended finance scheme is a milestone for the agricultural sector in the Eastern Cape region. It demonstrates the commitment of the government and its agencies to support the development of small and medium-scale producers and increase their participation in the mainstream agricultural economy.
