Agri SA calls on National Treasury to urgently consider supporting the Land Bank’s request of R18 billion over 5 years in order to ensure the bank’s sustainability.
Over the last few months, Agri SA has come to learn of the increasing liquidity constraints of the Land Bank resulting in the risk of inability to support the agricultural sector.
“Currently, the Land Bank finances 29% of the agricultural debt, making it a critical contributor to food security,” said Christo van der Rheede, executive director of Agri SA. Since April 2020, the bank cannot service its debtors, placing the going concern status of the Land Bank at risk. Currently, no new clients are being considered and clients are encouraged to seek financing from other financial institutions. Moreover, the critical development role that the Land Bank needs to fulfil, is compromised.
“As an institution, it is an important vehicle to finance new entrants into the sector, said Kulani Siweya, agricultural economist at Agri SA.
According to the presentation by the Land Bank to the Parliamentary Select Committee on Finance, the Land Bank ’s funders have indicated that there will only recommit funding on the back of state guarantees. Agri SA encourages the agricultural community to step into conversation with the Land Bank on the status of their facilities.
Tesourie-hulp aan Land Bank is noodsaaklik vir voedselproduksie
Agri SA het ‘n beroep gedoen op die Nasionale Tesourie om dringend oorweging te skenk aan die Land Bank se aansoek vir R18 miljard oor vyf jaar om sy volhoubaarheid te verseker. Agri SA het oor die afgelope paar maande verneem van die Land Bank se toenemende likwiditeitsprobleme, wat die risiko inhou dat hy moontlik nie die vermoë sal hê om die landbousektor te ondersteun nie. “Die Land Bank finansier tans 29% van die totale landbouskuld en is dus ‘n uiters belangrike bydraer tot voedselsekerheid,” sê Christo van der Rheede, uitvoerende direkteur van Agri SA.
Die bank kon sedert April 2020 nie sy skuldeisers betaal nie, wat ‘n risiko inhou vir sy lopende ondernemingstatus. Tans word geen nuwe kliënte oorweeg nie en word hulle aangeraai om finansiering by ander finansiële instansies te bekom. Verder is die kritieke ontwikkelingsrol wat die bank moet speel ook in gedrang.
“As instelling, is die Land Bank ‘n belangrike voertuig om nuwe toetreders tot die sektor te finansier,” sê Kulani Siweya, landbou-ekonoom by Agri SA. Volgens ‘n voorlegging wat die Land Bank aan die Parlementêre Gekose Komitee op Finansies gedoen het, het die bank se befondsers aangedui dat hulle herfinansiering slegs sal oorweeg onderhewig aan staatswaarborge.
