Ahead of Finance Minister Tito Mboweni’s Medium-Term Budget Policy Statement tomorrow, Agri SA has called on Treasury to urgently consider supporting the Land Bank’s request of R18 billion over five years to ensure its sustainability.
“The increasing liquidity constraints of the Land Bank pose a risk to its ability to support the agricultural sector currently, as the Land Bank is financing 29% of the agricultural debt. This makes it a critical contributor to food security,” said Agri SA executive director Christo van der Rheede.
“As an institution, it is an important vehicle to finance new entrants into the sector. With no new clients being considered and clients being encouraged to seek financing from other financial institutions, the critical development role that the Land Bank needs to fulfil is compromised,” said Kulani Siweya, the organisation’s agricultural economist.
We hope for boldness and clear timelines given the current economic climate.