As part of its commitment to serve South African farmers better, Land Bank said it has initiated a cultural shift within the organisation. It aims to instill a new mindset that will advance its interactions with clients, explained Sydney Soundy, Land Bank executive manager for strategy and communications, as well as acting executive manager for commercial development and business banking.
Speaking at Food For Mzansi’s lunchtime conversation series at Grain SA’s Nampo Harvest Day, Soundy emphasised the importance of cultivating a culture that extends beyond customer-facing roles, extending to the bank’s head office where transactions are assessed.
He said, “Even if you haven’t directly engaged with the customer, you need to approach these transactions with a developmental mindset.”
Fresh perspective on transactions
Soundy’s remarks were prompted by questions raised about the bank’s institutional culture. He stressed the need to view transactions from a different angle, urging a change in mindset.
“We are currently in the process of strengthening our provincial offices, and we are actively acquiring the necessary equipment. As part of this drive, we are dedicated to recruiting individuals with the right personalities, skills, and emotional and social understanding crucial for servicing our clients,” Soundy said.
The Thursday lunchtime session focused on enhancing understanding of Land Bank, with a panel of experts shedding light on the bank’s inclusive approach to supporting farmers from diverse backgrounds. It was confirmed that financial support is extended to communal farmers and farmers with lease agreements, contrary to some misconceptions.
Land Bank’s areas of focus
Describing Land Bank as an agent of change and transformation, Soundy outlined three key areas of focus for the bank. Firstly, it aims to support the department of agriculture, land reform and rural development in its land reform agenda.
“Our focus is on transforming the sector, allowing previously disadvantaged individuals to participate in agriculture by gaining access to productive land,” Soundy emphasised.
Secondly, the bank aims to provide pre-finance and post-finance support to both new entrants and existing commercial farmers. Affordability is also a significant concern, with Land Bank intending to coordinate and consolidate available funds from other sources to facilitate a blended finance model.
However, Soundy stressed that while the bank is an instrument of change, it remains a financial institution that relies on funding from lenders. Consequently, Land Bank has an obligation to repay its debts.
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Helping farmers flourish
Frans Mokoena, a commercial farmer from Tweespruit in the Free State, also participated in the panel discussion led by Food For Mzansi co-founder and editor-in-chief Ivor Price.
Mokoena, hailing from the Thaba Nchu district, is a passionate farmer known for his cultivation of crops, beef cattle, and sheep. His wife, Agnes, oversees their egg production and administrative unit.
Mokoena attributed part of his success to Land Bank’s financial support. Although he acknowledged some past challenges with the institution, he stated that their relationship had significantly improved.
Mokoena urged fellow farmers to regard their loans with respect, as they can serve as a motivating factor for hard work. He also credited Land Bank’s financing for enabling him to purchase his own land.
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Tailored financial solutions
Though Land Bank operates as a specialist bank, its insurance offerings, provided through Land Bank Insurance Company, offers a range of services and products, added Cassim Abdullah, the executive manager: sales and distribution.
This included agricultural asset insurance, crop insurance and life insurance.
“Crop insurance is a very niche market,” said Abdullah. “There are only about five insurance [companies] in the space. The Land Bank Insurance Company holds about 30% to 33% of the market. We are the second largest crop insurance [company] in South Africa.”
Abdullah said although their insurance company was quite established in the crop insurance market, more awareness around their offerings was needed.
- The Food For Mzansi lunchtime conversation series at Grain SA’s Nampo Harvest Day was presented in partnership with Land Bank.
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