In this Farmer’s Inside Track episode, recorded live at Nampo Cape 2024, we’re joined by leaders from Land Bank. We hear from Themba Rikhotso, CEO of Land Bank, as he reflects on the bank’s journey out of a four-year default, discussing key strategies for recovery, priorities for restoring stakeholder confidence, and the impact on agricultural financing, especially for small-scale and new-era farmers.
Rikhotso started by reflecting on the events that led Land Bank into default in April 2020.
“We had challenges with paying some of our loans, and one lender panics and accelerates, meaning that particular lender demands an immediate repayment of that loan. Because we don’t have money at that time, it then triggers what is called the cross-default clauses, which then means that the entire book of $40 billion at a point in time also gets defaulted.”
For about four years, this default status prevented Land Bank from fulfilling its critical role as a development finance institution (DFI) in the agricultural sector. Unable to carry out its mandate, the bank struggled to provide much-needed financial support to small-scale farmers and the broader industry during this period.
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Supporting new-era farmers
Meanwhile, Craig Harrison, the provincial head of Land Bank in the Western Cape, addressed the challenges facing new-era farmers in a competitive market and shared insights on successful initiatives supporting agricultural innovation.
Harrison weighed in on the challenges faced by new-era farmers, particularly in a competitive agricultural market. He emphasised the importance of supporting agricultural innovation and noted that initiatives to help farmers adapt to technological changes are essential for their success.
“It’s important for Land Bank to not only support traditional farming methods but to also embrace technological advancements and help farmers navigate a competitive market,” he said.
In this episode, they also discussed:
- How geographic information systems are enhancing Land Bank’s decision-making processes;
- The road ahead for Land Bank and more.
Dive deeper into the episode and gain insights from the award-winning Farmer’s Inside Track, officially recognised as Africa and the world’s best podcast at the 2024 Digital Media Awards presented by WAN-IFRA, the global press organisation.
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