Land bank granted white farmers R39 billion while black received just over R2.5 billion.
The Land Bank of South Africa has been criticized for allocating only R2.5 billion to black-owned or black-empowered investments while a whooping R39 billion is directed mostly towards white farmers.
The National Treasury has now approved additional R1 billion in 2017/18 to support investments by black entrepreneurs in the agricultural sector and to begin transforming a loan book that is still overwhelmingly composed of funding to established commercial farmers.
The bank CEO TP Nchonco has admitted that these numbers do not look good at all especially because we are entering radical economic transformation phase.
“For this strategic sector to grow and safeguard the country’s food security it must seize the opportunity to open up and be accessible to emerging farmers. Inclusive participation will certainly lead to sustainable growth, ensuring that as many people as possible contribute and benefit from the economic benefits driven by the sector,” said Nchocho.
The revelation of these disappointing figures is a clear indication that the country’s policy on radical economic transformation must take centre stage at ANC’s elective conference in December 2017.
Deputy President Cyril Ramaphosa has surprisingly defended President Zuma on his radical economic transformation stance. Speaking to BBC delegates Ramaphosa said that it is high time that we make radical economic transformation a reality.
Nchocho added that the main problem is the slow pace at which land redistribution is going in South Africa. “Land is available. What needs to be done is for that land to be released into hands that can commercialise it,” he said