Browsing by Author "Dlamini, Mandisa"

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    The case of Land Bank's retail emerging markets (REM) funding model for emerging farmers
    (2017) Dlamini, Mandisa; Nyathi, Nceku
    The Land Bank's retail emerging markets (REM) funding model was established in 2011. The main objective of the following study was to investigate whether the collaborations between agricultural industry players involved in the funding model, had been beneficial towards supporting the growth of black emerging farmers. The two funding approaches taken being, direct lending to individual farmers and the wholesale financing facility aimed at farmer groups, are explored in detail. The method of analysis adopted was mixed, comprising of a qualitative and quantitative approach. The quantitative approach was directed at the entire REM loan book, to obtain a view of the growth of the book over time; the performance of the loans and the level of non-performing loans within the book. The results thereof would be of interest given that emerging farmers were perceived to be of a high risk. The qualitative approach delved deeper into the relationship between the Land Bank and intermediaries which were tasked to provide end-to-end business support to the emerging farmers. The expected results would include an observation of the development and social impact, including skills development for the emerging farmers. The questionnaire completed by a sample of black emerging farmers, working with intermediaries revealed a few positive factors. The emerging farmers not only received technical support, but also developed a range of skills which are suited to operating a successful farm and running a profitable business. Although affected by the drought, the farmers were able to generate a profit and also create employment in their communities, thereby making a contribution towards a social impact, through their development. However the farmers also spoke out about the challenges they still encountered in the industry. The quantitative analysis displayed that the portion of the REM loan book which consisted of non-performing loans was a small percentage, relative to the performance of the entire loan book. Furthermore, the REM loan book had increased sizeably since its inception, reaching out to a wider scope of emerging farmers. Overall, the Land Bank's REM funding model was a success.