The Land Bank

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The Land Banks Role in Agricultural Development
From 1994 to DatePresentation To The Portfolio
Committee on Agriculture and Land Affairs
(National Assembly)
10 June 2003
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Presentation Outline -

• 1. How Much Has Been Advanced for Agricultural
  Development from 1994 to Date?
• 2. What Activities Have Been Organized or
  Embarked Upon on Agricultural Development?
• 3. What Further Inputs / Programmes Will Your
  Institution Be Involved In?
• 4. Your Relationship With The Department of
  Agriculture and Land Affairs?

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1. How much has been Advanced for
Agricultural Development since 1994
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1. How much has been Advanced for
Agricultural Development since 1994
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2.What Activities Have Been Embarked Upon on
Agricultural Development? (1)
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2.What Activities Have Been Embarked Upon on
Agricultural Development? (1)
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What Activities Have Been Embarked Upon on
Agricultural Development?(2)
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What Activities Have Been Embarked Upon on
Agricultural Development?(2)
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What Activities Have Been Embarked Upon on
Agricultural Development? (3)
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What Activities Have Been Embarked Upon on
Agricultural Development? (4)
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What Activities Have Been Embarked Upon on
Agricultural Development? (4)
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What Activities Have Been Embarked Upon on
Agricultural Development? (4)
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Challenges for Agricultural Development Finance

• Access to Skills and Capacity Building
• Access to Information, Technology
• Access to Markets
• Access to Land
• Debt Arrears and Repayment
• Unable but willing
• Able but not willing

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Stakeholder Relations - Annexure 1 (1)

• Agency agreements with provincial DFI / Village
  Banks / Intermediaries - Wholesale facility of
  R10m granted to Ithala and of R40m to Uvimba
• National and Provincial Youth Commission - 4
  farms made available to the youth.
• Umsobomvu Trust - Provide production credit
  finance as well as training capacity building on
  the Youth Farms.
• MoU signed with both NAFU NERPO - R885k provide
  for capacity building, conferences and
  international relations. Also represented at
  Nerpo Young Agribusiness Entrepreneurial
  Development.

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Stakeholder Relations - Annexure 1 (2)

• Onderstepoort Biological Product (OBP) - OBP busy
  with a proposal where Land Bank is to provide
  finance to the distributors of Animal medicines
  and Livestock feeds.
• ARC - Initiatives which develop models for
  livestock improvement risk management on
  grazing and crop production and the Geographical
  Information System.
• Farmers of the Year - Sponsored the Provincial
  Female Farmer of the Year, National Female Farmer
  of the Year and the Grain SA Development Farmer
  of the Year.

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Stakeholder Relations - Annexure 1 (3)

• IDC - Co-financing risk sharing on selected
  projects e.g Bethlehem Small Farmers (Apples
  project) Sundays River (Citrus project).
• Agri SA - Mentorship programs which benefited 832
  beneficiaries.
• ABC - Relationship which promote discussion on
  issues pertaining to the Land Bank Act and its
  impact to the Agribusiness. Firm commitment by
  ABC to support agricultural development in the
  form of linking development farmers to market
  opportunities.

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Major Development Projects Funded - Annexure 2 (1)
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Major Development Projects Funded - Annexure 2 (2)
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Public Private Sector Partnerships (1) - Annexure
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• Nkomazi Project
• Land Bank - Finance (R93m)
• DLA - Grants (R47m)
• TSB - Sugar Quota
• Eskom - Power
• DWAF - Water Grants
• Goodhouse (Paprika)
• Land Bank Finance (R55,4m)
• Variety Holdings Contracts
• DLA - Grants (R13m)
• Regional Council - Long Term Leases
• Top Rose
• Land Bank Finance (R4,6m)
• Netherlands Investment (R5m)
• IDC (R4,6m)
• Equity Africa (2,5m)

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Public Private Sector Partnerships (2)

• Mabandla Sigidi Zintwala Forestry Project
• Land Bank Finance (R15,5m)
• State Land
• Private sector (Mondi) Management
• Makatini Cotton
• Land Bank Finance (R55m)
• Private Investment NSK (R20m)
• Papricor Oils
• Land Bank Finance (R8m)
• Pamodsi Andre Hendricks (Private investment) -
  (R20m)
• Kanhym Estates
• Land Bank Finance (R96.8m)
• LRAD Grant Approved (R24m)
• Private Sector Investment (Management members)
  - (R11,7m)
• Various Capacity Building Programmes with
  Individual Commercial Development Farmers

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3. What Further Inputs / Programmes Will Land
Bank Be Involved in Future? (1)

• A. COMMUNICATION STRATEGY
• - Land Bank communication strategy
• - Improved internal communication
• - Improved external communication
• B. FOOD SECURITY STARTER PACK
• - Food Security initiative
• -
• - Concluding MOU implementation with NDA

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3. What Further Inputs / Programmes Will Land
Bank Be Involved in Future? (2)

• C. ENHANCED BUSINESS PROCESSES AND SYSTEMS
• - Help to streamline our internal processes.
• - Identify bottlenecks within our internal
  systems.
• - Help to speed up our loan processing, thus
  improving our turnaround time.
• D. DIPUDI GOAT PROJECT
• - Analysis of Goat Industry into financing
  opportunities
• - Meat, Skin, Milk and Cheese analysis.
• - Busy with a proposal and a financial
  package.

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3. What Further Inputs / Programmes Will Land
Bank Be Involved in Future? (3)

• E. ARC JOINT INITIATIVES
• - Livestock Improvement Innovation Analysis
• - Risk Management - Impact of climate
  condition on grazing crop production.
• - Developing early warning climate conditions.
• F. NEW BANKING SYSTEM
• - Assist with improved customer service
• - Enable us to operate on-line.
• - Improve processing of documents.

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3. What Further Inputs / Programmes Will Land
Bank Be Involved in Future? (3)

• G. National Agricultural Risk Management
  Initiative
• - Partnering and Supporting the NDA initiaive
• H. Proposed Agency agreement for the
  implementation of Agricultural Debt Management
  Act

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4. Relationship With The Departments of
Agriculture and Land Affairs

• Accountable to the National Department of
  Agriculture.
• NDA a key partner for agricultural development
• Joint monitoring of project - Provincial Advisory
  Forum.
• Land Restitution Project - Land Bank provide
  technical advise and finance.
• Flood Relief - Project Manage the NDA R161.5m
  scheme.
• Agent for the DLA for LRAD distribution
• Joint initiatives with NDA in sourcing
  international grant funds - DGRV (German Based
  Institution)
• Joint initiatives with NDA in the Kgalagadi
  Dipudi Projects
• Participate in ITCA and Minmec
• .

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• Thank You