
The initiative, a strategic partnership with Woolworths, is also intended to improve food security, and drive inclusive growth across South Africa’s agricultural sector.
It comes as a direct response to longstanding inequalities in agriculture, Sydney Soundy, chief strategy officer of Lank Bank, told Farmer’s Weekly.
It further represents a significant public-private sector collaboration to integrate emerging farmers into high-value commercial supply chains.
“At present, smallholder farmers contribute disproportionately low outputs to the national agricultural economy. Statistics indicate, amongst other commodities, that historically disadvantaged people only account for 1% of potato production, 1,3% of wheat, and 8,3% of tomatoes, despite forming a significant portion of the farming population,” said Soundy.
“This partnership between Land Bank and Woolworths is a deliberate step to change that dynamic. Through it is a shared commitment, we are working to integrate smallholder farmers into high-value supply chains by combining tailored financial solutions, market access, technical training, and long-term capacity support.
“By aligning financial tools with real commercial opportunities, our collective aim is to make smallholder farming more productive, profitable, and sustainable. This will ensure that transformation is not just about inclusion but about growth and long-term viability.”
Land Bank mandate
Soundy said Land Bank’s core mandate is to build a resilient, inclusive and competitive agricultural sector. The new partnership is, therefore, a direct extension of their mission.
“This means supporting farmers that are large and small, to manage risk, adapt to climate challenges, improve technical capacity, and expand their operational sustainably. Land Bank provides blended finance and agricultural insurance offerings to contribute to the mitigation of risks for smallholders. At the same time, Woolworths provides stable market access, and technical support, to ensure that farmers can produce to the required standard.
“This shared value approach enhances productivity while improving producers’ ability to navigate market and climate-related shocks. In doing so, the partnership strengthens food security, safeguards livelihoods, and ensures the agricultural sector remains a reliable pillar of the South African economy.”
According to Soundy, the ultimate aim is to commercialise smallholder producers, improve their productivity, and integrate them into formal retail value chains.
“In doing so, the partnership supports job creation, local economic development, and a more balanced agricultural economy that includes diverse agricultural producers capable of delivering both food and opportunity at scale.”
In terms of MSME development, Soundy said Land Bank would provide smallholder farmers with blended finance, business mentorship and operational support.
“Woolworths complements this by offering procurement opportunities and technical assistance through its Enterprise Inclusive Justice Initiative. This combination ensures that MSMEs are not just producing for subsistence, but are growing into viable agribusinesses with real market access.
“On food security, the partnership is geared toward increasing food production output among smallholder farmers by expanding their capacity to supply both formal retail markets and informal local economies,” he added.
“Land Bank supports this by providing finance for working capital, agricultural inputs, infrastructure, and implements that enable farmers to scale up their operations. As production increases, surplus produce not absorbed into the retail supply chain can be distributed to local and informal markets. This will improve overall food availability, nutritional access, and resilience within rural communities.
Community upliftment
“On community upliftment, the partnership also targets unemployed agriculture graduates. Land Bank will support these graduates with finance and business development services to either establish their own enterprises or enter employment within the sector. This is a direct investment in the next generation of agricultural farmers and agriculture professionals in a practical way to address youth unemployment in rural areas.”
Soundy pointed out that the initiative and partnership with Woolworths is about more than merely boosting agricultural output.
“It’s about building a more equitable, inclusive and future-ready sector. By aligning public sector finance with private sector market demand, we are developing a scalable model for smallholder development that is both impactful and sustainable. Land Bank is not only a financier, but also a convener of the broader agricultural ecosystem.
“We are actively mobilising government, private sector players, development partners, and farmer associations to collectively support the integration of smallholder farmers into value chains.
“This ecosystem-wide approach is essential for addressing systemic barriers and ensuring lasting transformation. Land Bank remains committed to growing this model through strategic partnerships that increase food production, create jobs, and unlock inclusive growth across South Africa’s agricultural economy,” concluded Soundy.