R1bn fund to assist black farmers will be run by the Industrial Development Corporation

accreditation
0:00
play article
Subscribers can listen to this article
The Land Bank which provides funding to emerging farmers who can't access commercial bank loans is in a financial pickle. (iStock)
The Land Bank which provides funding to emerging farmers who can't access commercial bank loans is in a financial pickle. (iStock)

South Africa has announced the launch of a R1 billion rand fund to help small-scale black farmers enter commercial agricultural production.

The Department of Agriculture will provide money and it will be run by the Industrial Development Corporation (IDC), a state-owned development bank. The IDC will also contribute in the form of loans. The fund will have an initial duration of 10 years.

"The broader agricultural sector is central to the recovery of the local economy," said IDC chief executive officer Tshokolo Nchocho.

In addition to addressing the racial inequality that is a legacy of apartheid the fund will, to some extent, fill the void left by the Land and Agricultural Development Bank of South Africa, a state bank that’s defaulted on its debt and is struggling to provide fresh finance for farmers.

The creation of the fund may encourage lending to the sector by commercial banks as well as other state development institutions, said Agriculture Minister Thoko Didiza at a press conference on Thursday.

The ANC is considering pushing to have the government amend the constitution to allow for the redistribution of land without compensation, especially inactive land, to boost black participation in the economy. The fund aims to focus on horticulture, fruit for export, livestock and poultry.

The IDC has already invested R4 billion in agriculture and plans to double that amount over the next four years, Nchocho said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.35
-0.0%
Rand - Pound
19.81
-0.0%
Rand - Euro
17.08
-0.0%
Rand - Aus dollar
10.76
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,764.62
0.0%
Silver
25.81
0.0%
Palladium
2,467.49
0.0%
Platinum
1,038.50
0.0%
Brent Crude
73.51
+0.6%
Top 40
59,504
-1.5%
All Share
65,635
-1.4%
Resource 10
60,958
-1.7%
Industrial 25
87,956
-1.3%
Financial 15
12,995
-2.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Should government have assigned a majority shareholding in SAA to the private sector?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, It's a good decision
63% - 134 votes
Not a good move
10% - 21 votes
Too early to tell
28% - 59 votes
Vote