Newly-appointed Land Bank chief executive, Themba Rikhotso, has addressed concerns that the institution would neglect white commercial farmers in favour of new-era, black farmers. Speaking at a Food For Mzansi event at Grain SA’s Nampo Harvest Day, he emphasised the bank’s commitment to supporting all farmers.
“Land Bank wants to ensure that our development activities create the right sort of income. This entails being financially stable and creating developmental impact,” Rikhotso told more than 100 farmers at the lunchtime conversation hosted at Nampo Park in Bothaville, Free State.
To ensure its sustainability, the bank needs commercial farmers, Rikhotso reiterated. He noted that before the bank’s liquidity challenges in April 2020 more than 80% of its loan portfolio consisted of commercial farmers, highlighting their importance to the bank’s operations. “So, we have not moved away from supporting commercial farmers. That remains our focus,” he said.
Rikhotso acknowledged that the bank’s focus has shifted slightly towards developing new-era farmers. He emphasised that Land Bank aims to be a development financial institution that effectively contributes to the agricultural sector’s growth and prosperity.
The CEO furthermore recognised that the bank had historically made mistakes in developing new-era farmers and cited liquidity challenges as a contributing factor.
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Rikhotso’s message was well received by stakeholders in the agricultural sector. Christo van der Rheede, executive director of Agri SA, expressed enthusiasm for Land Bank’s new direction, which includes a focus on development financing. He called for a coordinated and programmatic approach involving collaboration between various stakeholders, including government and the private sector.
Rikhotso echoed the sentiment, emphasising the need for new partnerships among key stakeholders to ensure the success of the agriculture industry. He expressed his gratitude to farmers, investors, clients, and shareholders for their support and stressed that collective effort is essential to address the challenges faced by the sector.
‘Use the AAMP as guide’
Van der Rheede furthermore provided advice to the new CEO, urging him to explore the opportunities presented by the Agriculture and Agro-processing Master Plan (AAMP) and to work with partners who have committed their support to the plan. He also suggested that Rikhotso source funds from different players and allocate them to agriculture.
Van der Rheede highlighted the importance of adequate funding for farmers to access inputs and markets and compete effectively. He also believed that available state-owned land should be placed under the auspices of Land Bank to fast-track the growth of more black commercial farmers.
“The state sits on 5 500 farms,” Van der Rheede said. “Who is in charge of those farms? What are the lease agreements? What are the productivity levels of those farms? To what extent are those farmers supported? Those farms need to be under the auspices of Land Bank. So, the Land Bank has the asset base on which it can leverage funds with the state land.”
Leona Archary, chief executive of the Agricultural Development Agency (Agda), expressed satisfaction with the growing momentum and partnerships of Land Bank, but stressed the importance of acting swiftly to execute plans. She also highlighted the emergence of role players in the agricultural sector who are starting to align their efforts.
Archary said, “We are seeing a new enthusiasm with Land Bank and a new direction with the bank going into development financing as well. That is important. The only way that we can get agriculture right is if all key stakeholders can come together and form new partnerships.”
‘Move with speed and purpose’
During the panel discussion, concerns were raised about the lack of financial support for rural farmers. North West farmer Nhlanha Soka said, “We are having rural activities in farming which are not getting exposure to opportunities. What programmes are in place which will identify rural farmers [which could be financed by the bank]?”
Responding to the question, Rikhotso said collaboration is needed to solve existing problems. “We are asking you to help find. I’m from a rural area myself. To be honest, I don’t think we have been very effective in integrating the rural communities into the mainstream agricultural sector.”
Rikhotso outlined several systems that Land Bank is implementing or planning to implement, including redirecting available funds towards agricultural development, building skills and capacity for managing partner funds, expanding the bank’s role beyond financing, providing pre- and post-finance support, and cultivating a culture of patient capital.
The agricultural sector has long been plagued by fragmented efforts and a lack of alignment among its key stakeholders, reiterated Archary. She expressed her satisfaction with the emerging unity among role players, emphasising the significance of this newfound alignment.
By acting with speed and purpose, the sector can overcome its challenges and achieve the transformative change it desperately needs, she advised Rikhotso.
“I’ve been in the sector for many years. It has not been easy to get many people on the same page. Now that we have built momentum and partnerships, let us not lose that but act with speed. I think that’s the biggest problem. We take too long between planning and execution,” Archary said.
- Discover the inside scoop on Land Bank as Food For Mzansi presents another engaging lunchtime conversation at Nampo Park today at 13:00. Join Ivor Price, co-founder and editor-in-chief of Food For Mzansi, along with Land Bank’s Sydney Soundy and farmer Frans Mokoena, as they delve into the institution’s strategy, and financing opportunities. Don’t miss this opportunity to gain valuable insights and get to know Land Bank better.
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