The government's aims to make up to R1-billion worth of production-enhancing, short-term loans accessible to impoverished rural farmers through its Micro-Agricultural Finance Schemes for South Africa (Mafisa) initiative. The funding would be available from Postbank outlets nationwide, where small enterprises could obtain short-term loans of R5 000 to R100 000 to inject into their businesses, Jobs for Growth project leader Vuyo Mahlati said at a press conference in Pretoria, on Monday, responding to an Engineering News Online question.

“The project aims to develop strategic partnerships in making finance accessible for especially marginalised women, youth and people with disabilities, in order to enable them to start small enterprises, and thereby create jobs,” Department of Agriculture agricultural development finance senior manager Jenetta Mahlangu stated.

Mahlati pointed out that Mafisa chose Postbank as a partner because of its extensive nationwide footprint, which would even allow access to people living in remote rural areas.

Postbank MD Totsie Memela Khambule told Engineering News Online that the bank's branches would provide basic information to people wishing to know how they could take advantage of the initiative.

She also said that the bank would be deploying mobile units to rural areas to provide information on how to gain access to the funding.

The initiative was in line with the government's drive to create jobs and small enterprises in the second economy.

Mahlati said that borrowers would have 12-months to repay the loans, which would support the production of vegetables, livestock and poultry.