Question NW2806 to the Minister of Agriculture, Land Reform and Rural Development

Reply:

THE MINISTER OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT:

(a)(i),(ii),(iii),(iv),(v) Yes. Please refer to table 1 below.

Table 1(METTA)

MEMBER	ORGANISATION
DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT
Mooketsa Ramasodi	Director-General, DALRRD (Chairperson) [email protected]
Clinton Heimann	[email protected]
Nasele Mehlomakulu	[email protected]
INDUSTRY REPRESENTATIVES
Theo Boshoff	[email protected]
Wandile Sihlobo	[email protected]
Annelize Crosby	[email protected]
Kulani Siweya	[email protected]
Christo Van der Rheede	[email protected]
M Matlou	[email protected]
Dr S. Ntombela	[email protected]
Ferdi Meyer	[email protected]
LAND BANK
Mr T. Rikhotso	Chief Executive Officer / Land Bank

(b) (i),(ii) The focus of the Agro-Energy Fund is on energy intensive agricultural activities. These include irrigation, intensive agricultural production systems, and on-farm cold chain related activities. Criteria for accessing the Agro-Energy Fund as part of the measures to reduce the impact of load shedding on farming enterprises is as follows:

QUALIFYING CRITERIA

• To be eligible, a company must be applying to implement an energy efficiency project or to implement a project that offsets electricity from the grid, through self-use renewable energy;
• Only one application per entity or applicant will be considered;
• No debt takeovers; debt settlements or refinancing;
• South African citizens with a valid ID and/or registered business entity;
• Must be 18 years and above;
• The Applicant must be operating an Agricultural Business at the Primary/ Secondary level;
• Applicants must demonstrate the capacity to utilize the energy requirements applied for;
• The grant will not be eligible to fund any alternative energy project/transaction on a stand-alone basis BUT will always be utilised to blend with a loan from the Land Bank. Furthermore, the grant cap per category may not be exceeded, however, depending on the business’s ability to afford a loan, the loan component may exceed the threshold stated;
• Smallholder, medium-scale, large-scale and mega commercial producers as defined;
• Producers involved in energy-intensive farming enterprises including on-farm cold chain related activities;
• Proof of land ownership or proof of access to land (e.g. Leases or PTOs – must be aligned to the term of the loan at the minimum);
• Allocation to prioritize Women, Youth, People with Disabilities and Military Veterans;
• Co-funding by DFIs, equity participants, private sector grants, other debt/equity programmes for the same purpose and project (sharing risks) is allowed if it forms part of the total project proposed. The process will be handled in-line with Land Bank policies and procedures;
• Producers meeting the Credit policy, procedures and processes of the Land Bank; and
• Product offering and product terms for the Agro-Energy Fund to be guided by the Land Bank Product Manual.

REQUIREMENTS

• Operating entities - Financial statements for the last three years as a minimum if operating for more than 3 years (if available);
• New entrants – will be assessed in-line with the cash flow projections of the proposed business;
• Business Plan demonstrating the impact of the grant on the business’s operations, to be supported by cash flow projections of at least 24 months;
• All the normal Land Bank requirements for the blended Agro Energy facility will apply;
• Feasibility/ energy expert report determining the energy requirement and significant energy uses of the farm. This must include the Infrastructure design;
• For existing farmers proof of historical energy consumption (three months municipality bill or equivalent) and for new entrants as per the energy expert requirements report;
• Environmental authorisations (EIA/EA) where applicable (an EIA is not required for ground mount systems below 10MW and with a physical footprint of less than 1 ha. Rooftop systems, floating PV on dams etc. do not require EIA as they are on existing infrastructure. However, if the installations require activity clearance of vegetation or working off a watercourse might trigger the need for an EIA);
• A generation license from NERSA where applicable in terms of the regulations;
• Health and Safety requirements to be complied with;
• Quotations for Capex requirements: Specifying the aftercare service, warranties, lifespan;
• Certification of the service provider of choice as a qualified entity/individual for installation registered with relevant competent authorities e.g. South African Photovoltaic Industry Association (SAPVIA) https://www.sapvia.org.za/members-service-directory/ for the solar energy industry; as well as other similar bodies for the various other energy solutions that the fund will consider; and
• Technical support pre and post installation: Possibly provided by DBSA (through DALRRD partnership with DBSA). The technical support will be used to obtain certification or confirmation that the installations meet the requisite standards and requirements.

(2) No, since the Ministerial launch of the fund was done on 29 August 2023.