As part of a national drive to enhance agricultural sustainability and food security, the Land and Agricultural Development Bank of South Africa (Land Bank) has launched the Agro Energy Fund (AEF) — a blended finance programme designed to assist South African farmers in acquiring renewable and alternative energy solutions.
Developed in partnership with the Department of Agriculture (DOA), the fund is geared toward supporting the installation of energy-efficient infrastructure that reduces reliance on the national electricity grid while ensuring consistent productivity for high-energy farming operations.
What is the Agro Energy Fund (AEF)?
The AEF is a targeted funding initiative that combines conditional grants with loan financing to help eligible farmers implement sustainable energy projects. The fund is particularly relevant for energy-intensive farming activities such as:
- Irrigation systems
- Dairy farming
- Poultry and piggery operations
- On-farm cold chain infrastructure
- Greenhouses and other intensive production units
It supports the acquisition of solar PV systems, biogas digesters, battery storage, and other alternative energy technologies aimed at ensuring energy reliability and reducing carbon footprints.
Who Can Apply?
The AEF targets a range of producers operating in the South African agricultural sector:
- Mega commercial producers
- Large-scale and medium-scale producers
- Smallholder farmers
Applicants must:
- Be South African citizens or registered local business entities
- Operate an agricultural enterprise at primary or secondary levels
- Demonstrate energy demand for production
- Have proof of land ownership or access
- Submit one application per project/entity
Note: Politicians in office, part-time or distressed producers, and foreign nationals are excluded.
What Does the Fund Cover?
The AEF supports the purchase of capital equipment and infrastructure directly tied to energy-intensive agricultural activities. Examples include:
- Solar panels and inverters
- Battery storage systems
- Biogas and biomass energy systems
- Infrastructure installation by certified service providers
Required Documentation
Applicants must submit a comprehensive proposal that includes:
- 5-year cash flow projections
- Historical financials
- Feasibility study or energy expert report
- Electricity bills (12 months for existing farms)
- Quotations with warranties and aftercare service
- Project implementation plan
- Environmental and health compliance documentation
- Proof of certification and registration of service providers
- COIDA, UIF, and SARS tax compliance
- Company profile and CVs of key personnel
Financing Terms
- Blended finance model: Conditional grant + Land Bank loan
- Conditional grants capped according to DOA limits
- Loan financing is subject to Land Bank credit criteria
- Market-related interest rates apply
- Co-funding from private or public partners is allowed
- The fund does not support debt takeovers or refinancing
Why Invest in Renewable Energy?
The AEF is aligned with national energy resilience and agricultural productivity goals. By switching to renewable energy, farmers can:
- Cut rising electricity costs (solar PV: ~R0.20–R0.50/kWh vs grid: R2.50–R5.00/kWh)
- Reduce dependence on Eskom and avoid load shedding
- Ensure consistent power supply for production
- Promote environmental sustainability and eco-farming
- Gain long-term savings through self-sustaining systems
Related opportunity: Apply for the Africa Agri-Food Development Programme (AADP) Grant
How to Apply
Interested farmers can apply through Land Bank’s local branches or submit an enquiry online:
Website: www.landbank.co.za
Contact Us: Land Bank Contacts
Powering Agriculture Sustainably
The Agro Energy Fund represents a critical opportunity for South African farmers to invest in reliable, green energy solutions while securing their productivity and contributing to national food security. With limited funding available, early and accurate application is encouraged.
For more details and full requirements, visit www.landbank.co.za or contact your nearest Land Bank office.
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