Land and Agricultural Bank Strategic Plan and Financial Sustainability

Video The meeting focused primarily on the sustainability of the Land Bank’s funding model and its capacity to fulfil its developmental mandate. Concerns were raised that the shift from a largely state-supported model to reliance on debt capital markets had weakened the Bank’s ability to support historically disadvantaged farmers and advance agricultural transformation. Members argued that stronger and more consistent state support was necessary to achieve land reform and broader agricultural development objectives. Transformation featured prominently throughout the discussion. Members questioned whether the Bank was providing sufficient support to emerging farmers, expanding access to land and addressing historical inequalities in agricultural ownership. Queries were raised regarding the effectiveness of existing transformation initiatives, the proposed Transformation Fund, and the extent to which black farmers were progressing into sustainable commercial operations. Members also requested information on the Bank’s success rate in supporting beneficiaries and the measurable impact of its interventions. Market access for emerging farmers was identified as a significant constraint, with Members emphasising that access to finance alone was insufficient without meaningful participation in local and international markets. Questions were raised regarding the Bank’s role in facilitating access to export opportunities and integration into broader agricultural value chains. The impact of climate-related disasters was also a key concern. Members highlighted the vulnerability of borrowers affected by droughts, floods and other extreme weather events, and questioned what protections existed for farmers unable to afford insurance. There was concern that farmers could lose land and productive assets following events beyond their control. The Bank’s long-term financial sustainability was closely scrutinised. Members questioned whether underlying structural funding challenges had been resolved or merely deferred to 2028. Concerns centred on liquidity pressures, non-performing loans, bad debts, and the likelihood of requiring further government support. Clarification was sought on the level of capital required to place the institution on a sustainable footing and its ability to meet obligations beyond 2028. Operational inefficiencies were also highlighted, particularly delays in loan approvals and disbursements that negatively affected farmers’ operations. Concerns were raised regarding the implementation of the blended finance programme, the adequacy of pre- and post-funding support, staffing capacity, technical expertise, and overall responsiveness to farmers’ needs. Additional issues included governance stability, utilisation of state-owned agricultural land, provincial disparities in lending, cybersecurity risks, loan book composition, and the balance between financial sustainability and developmental objectives. Members emphasised that the Bank’s success should ultimately be measured by its contribution to agricultural transformation, food security, and the advancement of emerging farmers.