Great farming extends far beyond the fields; it requires an astute business mindset and strong financial management. This message underpinned discussions on the final day of the Food For Mzansi Young Farmers Indaba, where industry experts peeled back the layers of why many funding applications fail and how young farmers can improve their chances of securing investment.
Capital is available but readiness is key
Contrary to popular belief, access to capital is not the main barrier in agricultural finance. Keneilwe Nailana-Mabona, agriculture sector specialist at the Public Investment Corporation (PIC), emphasised that South Africa has sufficient funding resources. The real challenge lies in unlocking this capital due to compliance issues.
“Many young farmers approach financiers without having their paperwork and financials in place, including critical permits like water licenses,” she explained. Nailana-Mabona advised that ensuring all farm departments meet compliance standards before seeking funding is vital to success.
Shifting from farmer to business owner
Desry Lesele, senior manager at Nedbank, encouraged farmers to adopt a professional mindset, framing their operations as an enterprise rather than a hobby. “Bankability depends on understanding your core farm structure, financial discipline, and whether you pay yourself a salary as a business owner,” he explained. Demonstrating ongoing improvement and accountability builds lenders’ trust.
Understanding what financiers look for
Smit de Wet, relationship manager at Land Bank, offered a clear banker’s perspective: the focus is on repayment ability, security offered, and debt levels. Most applications falter due to insufficient documentation rather than lack of potential.
Increasingly, blended finance options and partnerships between government and banks provide innovative pathways to support new and emerging farmers navigating complexities.
Support systems and structured planning
Quinton Naidoo, socio-economic development head at Kagiso Trust, reinforced that refusals often stem from non-structured proposals rather than farmers themselves. He observed that successful farmers are typically those who operate within supportive groups that assist with compliance and paperwork.
Diale Tilo, executive director of the Kgodiso Development Fund, urged young farmers to treat farming as a family business that must generate sustainable livelihoods. “Use industry experts to clarify objectives, determine necessary resources, mechanisation, and infrastructure aligned to your production goals,” he advised.
A Zimbabwean lens on farm bankability
Zimbabwean smallholder and emerging farmers face similar hurdles around funding readiness and structuring their ventures as businesses. The country’s Zimbabwe National Agricultural Policy Framework (ZimNAP) supports capacity-building initiatives, financial literacy, and partnerships to help farmers become bankable and access credit effectively.
Examples of Zimbabwean farmers who have developed collaborative models and meticulous financial records provide inspiring templates for those seeking formal investment.
Conclusion: Your farm is your business
The road to making a farm bankable starts with a mindset shift—from seeing farming as a passion to running it as a structured business. Compliance readiness, clear financial records, repayment ability, and support networks are essential pillars to unlocking funding.
As South African and Zimbabwean agricultural sectors push to empower youth and women under national development strategies, enhancing financial literacy and fostering strong business acumen among farmers remain critical for unlocking growth and sustainability.
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