Smallholder farmers continue to face significant barriers in accessing financial resources and enterprise support services, but a new funding solution may offer relief.
In partnership with Standard Bank, Agrivuno offers purchase order financing solutions, purposeful funding and public sector solutions.
“Purposeful funding is designed to help customers with valid purchase orders from all spheres of government or listed private-sector entities without a memorandum of understanding, fulfil their contractual obligations,” said Morongwa Kobe, manager at Standard Bank’s enterprise and supplier development department.
“For instance, if you have a purchase order to deliver stationery to a municipality but lack the working capital to fulfil it, we can assist. We’ll validate the purchase order and provide the necessary support.”
This solution offers a maximum loan of R250,000, with a term not exceeding 90 days, at prime plus 2%, along with a 2% once-off management fee.
The purchase order must have a delivery date of at least 14 days from the date of submission of all required documents.
Some of the documents required to access this funding includes a valid purchase order and supplier quotation; a Central Supplier Database (CSD) report and a tax clearance certificate.
For public sector solution, the maximum loan amount is R1.5 million, with terms not exceeding 90 days, at prime and a 2% once-off management fee.
Masabata Sebusi, who is Agrivuno’s representative and African ambassador for World Business Dialogue, said they facilitated access to markets and supported services, fostering the development of African farmers and promoting long-term sustainability in the agricultural sector.
Kholiwe Xaba, who is the owner and director of Indoni Farm in Winterveldt, said her recent engagement with Agrivuno and Standard Bank was an eye-opener.
“I initially viewed Standard Bank as just a financial institution, but I’ve learned they offer much more, especially to small and emerging businesses like mine. Their grants and funding opportunities specifically targeted at women in agriculture are incredibly empowering,” she said.
The farm specialising in aromatic crops such as herbs, spices, oyster mushrooms and okra.
“Support with speed points has improved transaction efficiency, which is crucial as our operations expand. Having a dedicated banker to guide me has brought me peace of mind and renewed confidence. I also deeply value the mentorship and knowledge-sharing opportunities available,” said Xaba.
