- South Africa's Land Bank plans to invest in emerging and commercial farmers
- The bank has secured a R900-million loan from Germany
- Repayments on the loan will start in March 2020
The Land Bank has secured a loan which it said will enable it to drive productivity, growth and job creation in the agriculture sector.
The German Development Bank has financed R900-million towards supporting emerging and commercial farmers in a partnership to support rural development.
“This facility is dedicated for SMME in the agricultural sector. We will find as many emerging farmers and new entrants to agriculture. We'll establish joint ventures between emerging farmers and established farmers. We'll support their operations with capital loans or working capital facilities to enable them to grow their business,” Land Bank CFO Bennie van Rooy said.
Briefly.co.za learned the terms of the loan are considered very favourable. The bank has 10 years to pay back the loan, and they have been given a two year payment holiday with the first re-payments to be made in March 2020.
Dr Thomas Duve, Director at KFW said they were only looking to increase agricultural production in Africa in order to have enough food for the rising population across the continent and to create jobs.
“Youth unemployment is a big issue in SA with our German experience we would say that SMME are the enterprises [that] will bring big jobs and big potential in SA is clearly in the agricultural sector.”
The money will be used to provide loans to commercial farmers and end-to-end business support for emerging farmers.
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