JOHANNESBURG - Banks are continuing to provide loans to commercial farmers, despite the uncertainty about land reform and possible amendments to Section 25 of the constitution, accoridng to Cas Coovadia, managing director of the Banking Association of South Africa (Basa).
Basa said in a statement that the unaudited figures of the big four banks show that loans to commercial farmers have increased to R148bn at the end of June 2018, from R133bn at December 2017.
Basa further affirmed that this was hard evidence that banks are committed to sustainable land reform and are confident that SA can find practical solutions to the challenges of restitution, redistribution and security of tenure.
Coovadia said, "However, to be effective and sustainable, any solutions, including a possible amendment to the constitution, must provide for: