Land Bank Pauses New Blended Finance Applications as Demand Exceeds Funding
Land Bank Pauses New Blended Finance Applications as Demand Exceeds Funding. The Land and Agricultural Development Bank of South Africa (Land Bank) has temporarily paused new applications for its Blended Finance Scheme (BFS) after demand for grant-supported agricultural finance exceeded funding available for the 2026/27 financial year.
The pause will remain in place for the rest of FY2026/27, or until sufficient additional grant funding becomes available. Land Bank said the measure will help it manage the remaining grant allocation while honouring contractual commitments already concluded.
Since the BFS launched in FY2022/23, about 540 clients or beneficiaries had been supported by the end of FY2025/26.
The scheme combines a repayable Land Bank loan with a non-repayable grant contribution funded by the Department of Agriculture. The department provides an annual grant allocation of R325 million.
The BFS is aimed at improving access to finance for qualifying historically disadvantaged producers. Land Bank said demand has significantly exceeded the annual grant allocation.
Land Bank stressed that the BFS has not been discontinued. A further R325 million annual grant allocation is expected for FY2027/28, subject to the current funding arrangement. The bank expects to reopen applications, subject to that allocation.
Applications in the bank’s pipeline without a contractual grant commitment will be reviewed individually. Where appropriate, Land Bank may assess whether the financing requirement can be supported through a fully repayable loan without the BFS grant component.
The pause does not affect Land Bank’s broader lending activities. The bank continues offering 100% loan financing, including mortgage facilities, revolving credit, instalment finance, term loans and structured financing solutions for qualifying farmers and agribusinesses.
Acting CEO Jabu Mphambo said the pause was a responsible measure to align commitments with available grant resources. Land Bank remains open for 100% loans and is working with government and partners to mobilise funding.
