Reports of the missing Mpondoland millions surfaced thanks to EFF MP, Babulwa Mathulelwa, who put a written question (NO7697E) to the Minister of Small Business Development, Stella Tembisa Ndabeni-Abrahams, on 25 November 2025.
Where’s the Money?
MP Mathulelwa wanted to know whether the Minister had been informed “that in 2024 an amount of about R11 million was allegedly allocated to the Mpondoland Cannabis Belt Association but never reached the association; if not, what is the position in this regard; if so:
a. what happened to the R11 million and
b has she found to be the reasons that the funds were never received by the association?”
Can’t Help You There
Minister Ndabeni-Abrahams’ reply is illuminating in terms of the Department’s modus operandi, and is quoted here in full:
“I have been advised that:
The budget allocated for the Cannabis programme in the Department of Small Business Development (DSBD) was not ring fenced for a particular entity and is disbursed on demand upon applications by qualifying entities.
It was designed as a catalyst fund to assist this nascent industry especially the emerging farmers in this sector.
Plans are still in place to make sure that the programme is implemented as planned by the end of March 2026.
With regard to the specific allegations and the amount indicated I suggest that the Honourable Member submit details on the allegation in writing with supporting documents for an investigation by the relevant directorate in the department or alternatively assist the complainant to do so.”
Neither Mathulelwa nor the Eastern Cape Rural Development Agency (ECRDA) had responded to questions emailed by Cannabiz Africa about the missing funds by the time of going to publication.
MP’s Head to Eastern Cape to Find Out Answers
One of the issues is the number of disbursing agencies and the apparent lack of oversight. There are at least seven disbursing agencies (listed below). However, there is little co-ordination between them and no standard criteria for lending, which as the Minister said, happens on an ad-hoc basis.
Further answers may come from the Parliamentary Portfolio Committee on Small Business Development which undertook a week-long oversight visit to the Eastern Cape earlier this month. MP’s went to “assess the effectiveness, impact and sustainability of government support programmes aimed at small businesses and cooperatives”.
According to a Parliamentary media statement, the committee would,” in particular, evaluate whether financial and non-financial interventions by the DSBD and SEDFA are meaningfully improving the livelihoods of small business owners, cooperatives and local communities”.
MP’s were scheduled to meet representitives from the Mpondoland Cannabis Belt Association on 3 February 2026 in Port St Johns, but Cannabiz Africa has not yet been able to get feedback yet from that meeting.
What Happened to Last Year’s Missing R20 m?
Last year, R20 million disappeared from the Gauteng Department of Agriculture and Rural Development (GDARD). The money was earmarked for training 200 emerging farmers and handed out to the Silver Tree Group.
The DA conducted an ‘oversight inspection on Silver Tree’s cannabis training farm at Tarlton in the Mogale district on 2 May 2025 and found no activity at all.
The DA’s Bronwynn Engelbrecht the matter would be taken up with the MEC responsible, Vuyiswa Ramokgopa, but almost a year later, there has been no action and no money recovered.
The following government grants and schemes are available to the cannabis sector, favouring black emerging farmers.
Government Grants and Schemes
Agro-Processing Support Scheme (APSS): Offered by the DTIC, this scheme provides grants of 20% to 30% of investment costs (up to a maximum of R20 million) for cannabis and hemp processing projects.
Comprehensive Agricultural Support Programme (CASP): Provides funding for various agricultural activities, including support for cannabis projects, particularly for emerging and small-scale farmers.
Rural Roots Grant: Aimed at supporting small-scale rural farmers transitioning to legal cannabis cultivation, with financial assistance of up to R50,000.
Ilima/Letsema Programme: Provides support to small-scale producers with agricultural inputs and, in some cases, infrastructure for rural communities.
Provincial Support: Specific provinces are allocating funds. For example, the KwaZulu-Natal (KZN) Department of Agriculture and Rural Development (DARD) has allocated R10 million to assist farmers with cannabis production and hemp permit applications.
Funding for Emerging Farmers
Micro-Agricultural Financial Institutions of South Africa (Mafisa): Provides loans of up to R100,000 to emerging farmers who cannot access traditional bank financing, helping with, among other things, start-up capital.
Land Reform and Agricultural Development (LRAD): Grants (ranging from R20,000 to R100,000) are available for previously disadvantaged individuals to access land for agriculture.
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