- South Africa’s Minister of Agriculture, Land Reform and Rural Development, Thoko Didiza, in her Agriculture Land Reform and Rural Development Dept Budget Vote 2023/24 delivered to parliament last week, announced an “Agro-Energy Fund”.
In addressing alternative energy sources in the sector, we are setting up the “Agro-Energy Fund” at the Land Bank, the focus for the Agro-Energy Fund will be on energy intensive agricultural activities,” she said.
These will include irrigation, intensive agricultural production systems and cold chain related activities. The criteria that will be utilised is as follows:
- a large-scale farmer will receive 30% grant funding to be matched with 70% loan portion, where the grant amount is capped at the maximum of R1.5 million.
- A medium scale farmer will receive a 50%` grant to be matched with 50% loan portion, where the grant is capped at the maximum of R1 million.
- Smallholder farmers will be supported by a grant portion of 70% to be matched with 30% loan. For this category the maximum grant funding is capped by R500 000. There will be a special recognition and application mechanism for small-scale irrigation schemes.
No further details were provided.
Author: Bryan Groenendaal
