LUCAS LEDWABA
THE AILING Land Bank, which recently requested a R5 billion recapitalisation to address capital buffers and advance its development mandate, has had part of its wish granted.
Finance Minister Tito Mboweni announced a whopping R3bn recapitalisation grant for the bank during his supplementary adjustment budget speech on Wednesday.
“This Bank holds 29 per cent of South Africa’s agricultural debt. The National Treasury is supporting the Land Bank find a solution to its default and craft a long‐term restructuring plan,” Mboweni announced.
It was feared that the total collapse of the bank would hit black farmers harder as they are shunned by the large commercial banks, although the Land Bank spend on the sector amounted to just 20%.
However, Mboweni’s announcement may have hit the right chord with the Agri SA, which ahead of the speech said it was hoping for support for the Land Bank.
Agriculture is a
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
