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General Information and News Monitoring

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Oor na u, Minister Mboweni | Over to you Minister Mboweni

English to follow:

26 Oktober 2020

Na afloop van President Ramaphosa se aankondiging van sy Ekonomiese Herkonstruksie- en Herstelplan op 15 Oktober, wat min detail bevat, is die fokus tans op die Minister van Finansies, Tito Mboweni, se Mediumtermyn-begrotingsbeleidsverklaring (MTBPS) wat hy Woensdag sal lewer.

Agri SA sien veral uit na die minister se aankondiging ten opsigte van Staatsondernemings (SOE’s), met spesifieke verwysing na die Land Bank , ‘n sleutelinstelling vir die landbousektor. Ons het aanbeveel dat die Tesourie dringend ‘n hulp-pakket ter waarde van R18 miljard oor vyf jaar oorweeg om die bank se volhoubaarheid te verseker.

“Die toenemende likwiditeitsprobleme van die Land Bank hou ‘n risiko in vir sy vermoë om die landbousektor te ondersteun aangesien dié bank tans 29% van die totale landbouskuld finansier en dus ‘n kritieke bydraer tot voedselsekerheid is,” sê Christo van der Rheede, uitvoerende direkteur van Agri SA.

“As instelling is die Land Bank ‘n belangrike voertuig vir die finansiering van nuwe toetreders tot die sektor. Met geen nuwe kliënte wat oorweeg word nie en bestaande kliënte wat aangemoedig word om finansiering by ander finansiële instellings te bekom, kom die kritieke ontwikkelingsrol wat die Land Bank moet speel, in gedrang,” sê Kulani Siweya, landbou-ekonoom by Agri SA.

Ons hoop dat streng en duidelike spertye in die MTBPS aangekondig sal word gegewe die huidige ekonomiese klimaat, asook die spoedige implementering daarvan.

Navrae:

Christo van der Rheede

Agri SA Uitvoerende Direkteur

Kulani Siweya

Agri SA Landbou-ekonoom

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Following President Ramaphosa’s sketchy detail in his Economic Reconstruction and Recovery Plan, presented on October 15, focus now shifts to the Medium-Term Budget Policy Statement. It is due on Wednesday by the Minister of Finance Tito Mboweni.

AgriSA is particularly looking forward to the minister’s pronouncement on SOE’s, and the Land Bank in particular, a key institution for the agricultural sector. We have recommended that Treasury urgently considers supporting the Land Bank’s request of R18 billion over 5 years to ensure the bank’s sustainability.

“The increasing liquidity constraints of the Land Bank poses a risk to its ability to support the agricultural sector currently, as the Land Bank is financing 29% of the agricultural debt. This makes it a critical contributor to food security,” said Christo van der Rheede, executive director of Agri SA.

“As an institution, it is an important vehicle to finance new entrants into the sector. With no new clients being considered and clients being encouraged to seek financing from other financial institutions, the critical development role that the Land Bank needs to fulfil, is compromised”, said Kulani Siweya, agricultural economist at Agri SA.

We hope for boldness and clear timelines given the current economic climate from the Medium-Term Budget Policy Statement. Moreover, we hope for expeditious implementation thereof.

Enquiries:

Christo van der Rheede

Agri SA Executive director

Kulani Siweya

Agri SA Agricultural economist