The AfDB's private sector and micro-finance department director, Tim Turner said in a statement that the line of credit from the AfDB "will be dedicated to the agricultural sector which is generally labour-intensive," adding that assistance is expected to benefit "low-skilled workers, especially with the Land Bank's focus on emerging farmers."
The support will be also used to assist agricultural co-operatives and agri-related businesses; helping mobilise financial resources, ultimately contributing to job creation and income generation. The projected 2 700 loans to be given to emerging farmers are expected to generate some 14 000 jobs, Turner said, while the financing to the commercial farmers, cooperatives and agri-related businesses is expected to create at least 2 000 jobs.
SAinfo reports that the AfDB credit facility also includes a technical assistance component for capacity building, enabling the government to support, promote and facilitate the development and transformation of the agricultural sector in South Africa.
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