Land Bank

A specialist agricultural bank for those involved in ensuring South Africa’s food security. ̴

Land and Agricultural Development Bank of South Africa (Land Bank) is South Africa’s only specialist agricultural bank established in 1912, the bank’s sole objective is to serve South African commercial and Small Holder farmers by bringing specially designed financial services within their reach. These services enable farmers to finance land, equipment, improve assets and obtain production credit. Land Bank provides financial services that have moved with the times, continues to provide services to agri-business, and constantly reviews its offerings to ensure that they match the needs of an industry. As change has swept across the sector in South Africa, the socio-economic makeup of agriculture has altered bringing new entrants from historically disadvantaged backgrounds on to the land. These new farmers facing the challenges of establishing sustainable agri-businesses across the agricultural value chain, Land Bank has been a commercial lifeline offering appropriately designed financial products that facilitate personal and commercial viability in a sector that is vital to the sustainability of South Africa and its people.

Although established by government mandate Land Bank receives no financial subsidies from government. Instead, it relies on the expertise of skilled staff that compete on equal terms with commercial banks to obtain the funds it needs from the money market at competitive wholesale interest rates. These funds are then lent to its agricultural clients at market-related rates. However, as Land Bank enjoys ‘tax-free’ status, and also pays no dividends to government, all funds raised are used for development.

Our broad mandate, as expressed in the Land Bank Act, covers 11 objectives:

  • Equitable ownership of agricultural land, in particular the increase of ownership of agricultural land by historically disadvantaged persons
  • Agrarian reform, land redistribution or development programme aimed at historically disadvantaged persons
  • Land access for agricultural purposes
  • Agricultural entrepreneurship
  • Removal of the legacy of racial and gender discrimination in agriculture
  • Enhancing productivity, profitability, investment and innovation
  • Growth of the agricultural sector and better use of land
  • Environmental sustainability of land and related natural resources
  • Rural development and job creation
  • Commercial agriculture
  • Food security