LANDBANK - Vryheid

Land Bank does not receive any financial subsidy from the government but gets its money from the money markets. It competes with other financial institutions to lend money from the markets which it then on-lend to clients at market related interest rates. However, because Land Bank does not pay tax and dividend to the government, it uses the money that could have been used in those instances to support development. In 1995, then President Nelson Mandela constituted the Strauss Commission on Rural Finance. The commission was to look into the transformation of Land Bank with a view of making it more accessible to all South Africans. Stressing the need for the Bank to serve a much broader spectrum of clients, the Strauss Report also emphasised that rural development should not be based on  

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ascaled down version of traditional commercial farming, but on far-reaching innovation. This has involved the development of unique products to provide world-class service and delivery at competitive rates. From 1997, when the Bank embarked on a new strategic direction, the organisation has transformed. The Bank now boasts an impressive, diversified staff component and a far broader customer base. Land Bank recognises that as an institution it may not always directly provide all the elements, as some are not in its competence, but it will seek out partners and create alliances to ensure that collectively, the key ingredients that a farmer requires to be successful, are delivered. The alliances and partnership, entered into, will ensure delivery on the most important aspects for emerging farmers' success, which are land, capacity/skills and financial resources. While Land Bank strives to be a provider of world class agricultural financial services, as a government owned institution; part of its mandate also includes contributing to rural development and stability, social upliftment and job creation.