The Land Bank’s Role in Agricultural Development From 1994 to Date Presentation To The Portfolio Committee on Agriculture and Land Affairs (National Assembly) 10 June 2003

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?

1. How much has been Advanced for Agricultural Development since 1994

1. How much has been Advanced for Agricultural Development since 1994*

2. What Activities Have Been Embarked Upon on Agricultural Development

2. What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

What Activities Have Been Embarked Upon on Agricultural Development

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

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.

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.

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.

Major Development Projects Funded - Annexure 2 (1)

Major Development Projects Funded - Annexure 2 (2)

Public Private Sector Partnerships (1) - Annexure 3 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) Hydro Tech Land Bank – Finance (R6m) Private Investors (R6m)

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

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

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.

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.

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

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 .

Thank You