The Land Bank last month launched a revolving credit facility for farmers which makes it easier for the farmer to access loan financie than was previously the case. Previously, the farmer would have to reapply for a loan after completing a full, administratively burdensome, application process.
The Land Bank is in talks to raise an about R20 billion loan from development finance institutions and other organisations, and it will also need to secure R10bn from the government to strengthen the bank’s balance sheet.
This was said by Land Bank acting CEO Jabu Mphambo, who spoke at a Parliamentary Select Committee of Finance meeting on Tuesday.
He said the bank had made significant progress on its financial turnaround since it defaulted on a debt repayment in September 2024. For instance, its debt had been reduced from R41bn to to R7.6bn currently, with most of the repayment derived from the bank’s own cash resources.
Mphambo said, however, the bank needs to finalise its additional funding requirements before the 2028 financial year because a significant debt would reach maturity in that year. Some of the R20bn raised would be used to refinance this debt; the debt maturity would be extended to possibly between 15 to 35 years, and it would also be drawn down in the two to three years thereafter.
