Emergence of Grobank a huge boost for SA’s agriculture sector
Bank is focused on providing finance to emerging farmers and SMMEs that have lamented the lack of funding for their projects
Agriculture has come under the spotlight in SA. Not only did the 2015/2016 drought highlight the sector’s importance to economic growth and job creation ambitions, the recent policy proposal on land expropriation without compensation drew attention to its importance in ensuring national food security, while also addressing inequality. Over time the focus of the debate on agriculture has evolved from focusing mainly on the sustainability of production to a discussion of farmer support, and more recently on land ownership. However, one factor — access to finance — remains a cardinal feature that has not been properly addressed. This is because the financial services sector plays a significant role in the growth of SA’s agricultural sector. The financial services sector’s credit exposure to agriculture amounted to R158bn in 2017, according to data from the department of agriculture, forestry & fisheries. The latest industry estimates put 2019 figures north of R160bn. This figure has ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.