Issued by: The Ministry of Land Affairs 27 March 1996
TABLING IN PARLIAMENT OF THE INTERIM REPORT OF THE COMMISSION OF INQUIRY INTO THE PROVISION OF RURAL FINANCIAL SERVICES
The need to transform the approach to the delivery of financial services to the rural poor had long been identified, more especially when it became obvious that there was a special need to support the land reform programme. Following a Cabinet decision a Commission of Inquiry into the Provision of Rural Financial Services was appointed on 18 January 1995 with a brief to:
"....investigate the provision of rural financial services, within the context of the rural development objectives of the RDP, and make recommendations for plicy, legislative and institutional measures to improve financial services for rural households, farmers and other entrepreneurs."
A number of specific matters which had to be addressed by the Commission was also incorporated into its brief.
The Commission began its work in January 1995 with the view to complete its task within twelve months. To execute its brief, the Commission divided itself into three task teams dealing with (i) the identification of the needs of the targeted rural clientele, (ii) the institutional base inherited, and (iii) the legal framework. Their work is recorded in Chapters 3, 5 and 6 of the Interim Report to be tabled in Parliament. A drafting team then generated conclusions and recommendations, discussed with all the Commissioners, which are represented at the front of the report.
There are 42 recommendations dealing with mainly institutional and legal aspects. While many of these have the support of all the Commissioners, some did not enjoy such wholehearted support: ie:
There were further concerns that five of the specific matters contained in the Terms of Reference had not yet adequately been dealt with, more especially the issue of capital retention in rural areas, and the mechanisms to ensure the financing of land reform.
The Commission met in January 1996 for what was to have been its final meeting. Time did not permit the areas of concern to be resolved. In order to fulfil commitments it was decided that the final report should be presented and should include two Minority Reports.
On receiving the documentation, the Minister of Land Affairs advised the Chairperson Dr Conrad Strauss of a preference that the Commission should continue its work in order to resolve such concerns and to more adequately address some other issues. Moreover, it was felt that there was great merit in publishing the current document as an Interim rather than Final Report, which would allow the Commission to receive a solid input from the public as a concrete response to the recommendations proposed.
The Commission met again on March 7. Dr Strauss put the options to the Commission and after discussion there was unanimous support of the benefits to be achieved through (i) the publication of an Interim Report and (ii) the continuation of its study, as well as (iii) the possibility that additional time would permit further debate to resolve differences of opinion amongst the Cmmissioners.
The Commission agreed on a task team to carry the responsibility of the remaining study and to consider the implications of the public response. It is hoped that such response will be received by the end of May 1996, and that the team will present the implications of the further work to the Commission by June 1996. It is envisaged that the Final Report will be submitted by the end of July 1996.
Public submissions regarding the recommendations of the Interim Report are thus invited and can be sent to: C/o Mr Gerhard Coetzee, Secretariat, Commission of Inquiry into the Provision of Rural Financial Services, Development Bank of Southern Africa, PO Box 1234, Halfway House, 1685.
Copies of said report are available from the Government Printer in Cape Town. Additional information may be obtained from Mr Gerhard Coetzee or Ms R du Plessis at Telephone (011) 313-3029/3042 or at 313-3609 (Fax)
ISSUED BY THE MINISTRY OF LAND AFFAIRS, 27 MARCH 1996