For entrepreneurs with the required expertise and access to finance possibilities, agriculture remains a desirable alternative. The climate of South Africa allows farmers to grow a wide range of products, including wine, sugar, fruits, vegetables, grains, and cattle.
On the down side, the industry has significant entrance obstacles. In particular, this encompasses not just a lack of commercial acumen and farming experience, but also expensive startup expenses and a dearth of launch funding.
Related Article: How To Get Land For Farming In South Africa
Let’s look at the alternatives for farm finance available to entrepreneurs if you feel like starting off with a small budget is a hurdle.
Opportunities for Agriculture Financing in South Africa
Agroprocessing Assistance Program.
Businesses that specialize in agro-beneficiation—the process of adding value to a product—can benefit from the assistance provided by the Agro-Processing Support Scheme, which aims to develop the industry and increase participation.
The subsectors that stand to gain are those that manufacture furniture, process fiber, make feed, produce fertilizer, and add value to food and beverages (including black winemakers).
The program should assist companies in achieving some of the following goals: enhanced capacity, job creation, updated machinery and equipment, competitiveness, and productivity.
Co-operative Incentive Scheme (CIS)
Cooperatives are crucial to South Africa’s economic development. They play a significant role in assisting with unemployment and poverty relief.
The Co-operative Incentive Scheme is a significant source of finance for agriculture and provides registered cooperatives with a 100% grant. By reducing their cost of doing business, it aims to increase the viability and competitiveness of cooperative firms.
The award aids newly formed cooperatives in acquiring their initial needs and developing an asset basis so they can rely on other forms of support.
The Scheme of the Black Indsustrialist
The Black Industrialists Scheme is a program that encourages and supports black business owners. Transport, green industries, agro-processing, biofuels, and chemicals are among the focus sectors.
The program provides cash to enterprises with a tested business strategy that are in need of money or wishing to grow.
The Black Industrialist Program aims to boost black-owned companies’ global competitiveness and growth.
IDC Agriculture and Agroprocessing Strategic Business Unit
This initiative aids start-up or established businesses in the agroprocessing and broader agricultural industries. The initiative, in particular, makes investments in projects and companies that either increase or develop local manufacturing capacity. The program aims to increase exports, strengthen competitiveness, and create more jobs.
The following sub-sectors of the agriculture value chain are supported by the fund: horticulture, which includes fruit, vegetables, nuts, tea, and coffee; processing of field crops; animal protein, which includes red/white meat, aquaculture, poultry, etc.; and forestry.
Isivande Women’s Fund (IWF)
They are specialized in lending money to companies run by women. Therefore, to qualify, your business must be legally registered and have 50% + 1 of its shares owned and/or managed by women.
The dti established the fund
They aims to offer businesses more readily available, usable, and affordable financing. Additionally, it aims to hasten women’s economic empowerment.
They offer capital for both new businesses and business expansions.