Issued by: Ministry of Agriculture
Deputy Minister of Agriculture, Mrs Thoko Didiza has paved the way for closer co-operation between the Department of Agriculture and the Council of South African Banks.
This follows talks between a Department of Agriculture delegation led by Mrs Didiza and COSAB in Pretoria on Thursday afternoon. Mattes of mutual interest were discussed, with both parties realising the need for more and frequent discussions in the future. The role of COSAB and the Department of Agriculture on agricultural financing and farmer settlement was at the core of the meeting.
Commercial banks, said COSAB, were committed to financing a certain category of farmers with the required security and ability to repay. However, this could only take place if the Government's role was clearly defined in respect of those farmers who did not meet banks' requirements, still in the process of graduating to become a bankable category.
Another issue discussed was that of the production credit scheme. Although COSAB members were prepared to reconsider conditions of the scheme, the risk factor when dealing with a certain category of farmers, was feared. Further discussions were not ruled out.
COSAB welcomed an opportunity to have further meetings with the Rural Financial Commission Task Team, to discuss agricultural financing and the role of the State in this respect.
LAND REFORM
The COSAB delegation stressed commitment to the Government's Land Reform Programme and said it would co-operate with the departments of Land Affairs and that of Agriculture, with a provision that beneficiaries were sustained at all times. The importance of support service by the Department of Agriculture at all levels, was emphasised.
LEGISLATION IN AGRICULTURE
COSAB was prepared to participate in the drafting of legislation relating to agricultural financing and welcomed the Department of Agriculture's endeavours to rationalise the present Agricultural Credit Act.
COMMUNICATION LINES
Formal communication lines were established between COSAB and the Department of Agriculture, with chief director Mr M Mbongwa representing the Department and COSAB represented by Mr S Grobler.
Deputy Minister Didiza and COSAB chairman of the Agricultural Standing Committee Andre Louw, happy with the outcome of the meeting. Need to debate further on policy and legislative issues, was identified.
Enquiries: JB Venter
Director: Financial Assistance and Land Administration
Telephone: (012) 310-4158