By Maile Matsimela
The KwaZulu-Natal Department of Agriculture and Rural Development has signed a Memorandum of Understanding (MoU) with one of South Africa’s biggest financial institutions – ABSA – to empower smallholder producers through skills development, financial literacy and access to markets.
Speaking at the signing of the MoU in Richards Bay on the north coast of the province last week, MEC Thembeni kaMadlopha-Mthethwa welcomed ABSA on board and expressed her gratitude for its support in the government’s endeavours to help both commercial and smallholder farmers especially the historically disadvantaged groups.
“I am pleased to announce we have signed a Memorandum of Understanding with ABSA. Having ABSA on board will help us our sector, which is the backbone of the province. We felt let’s tap into their expertise in terms of financial prowess to train our farmers on issues such as handling their profits. There are some loopholes we as a department have identified when it comes to the capacity building of the farmers we are assisting. So, ABSA will help us in that regard, and they will be training and upskilling our farmers,” kaMadlopha-Mthethwa said.
She emphasised this partnership is aimed at enhancing initiatives to support previously disadvantaged farmers.
“We view this collaboration as a strategic partnership, as it seeks to, amongst others, focus on collaboration between KZNDARD and ABSA by means of integrated planning, training, mentoring, value chain development, unlocking of markets for historically disadvantaged producers, job creation spin-offs and entrepreneurial development,” concluded MEC KaMadlopha-Mthethwa.
The collaborative objectives of the agreement include convening farmer information days to share support and financing opportunities offered by Absa and the department, collaboration between the department on a funding readiness programme for farmers, co-financing and financial support to qualifying farmers, and providing consumer financial literacy training to selected groups of farmers and farm workers. The DARD will attend farmers information days and support farmers with agricultural advice and extension services.
KZNDARD and ABSA are committed to a transparent, participative development and responsible stewardship of agricultural resources.
The department said this initiative reinforces agriculture as a critical driver of the provincial and national economy.
