Land Bank Financial Intermediation Project

The objective of the Land Bank Financial Intermediation Loan Project for South Africa is to sustainably scale up Land Bank’s financing, specifically to benefit emerging farmers. The project is a financial intermediary loan (FIL) of US$93 million to Land Bank as the borrower and implementing agency with a guarantee of the Republic of South Africa. The project has one component: a Line of Credit (LOC) for agricultural financing in the amount of US$93 million. The objectives of the LOC component are to: support land bank in refocusing its operations on wholesale lending, and support land bank’s new approach to help integrate emerging farmers into established value chains. To achieve the above objectives, land bank will provide both wholesale finance to participating PFIs for on-lending to commercial and emerging farmers and direct financing, in partnership with large agriculture corporates, to emerging farmers to support their integration in established value chains.