NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST
MAFISA 4 TH QUARTER EXPENDITURE REPORT FOR THE 2009/10 FINANCIAL YEAR S26 NCOP BUILDING, PARLIAMENT...
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Transcript of MAFISA 4 TH QUARTER EXPENDITURE REPORT FOR THE 2009/10 FINANCIAL YEAR S26 NCOP BUILDING, PARLIAMENT...
MAFISA 4TH QUARTER EXPENDITURE REPORT FOR THE 2009/10 FINANCIAL YEAR
S26 NCOP BUILDING, PARLIAMENT 10th AUGUST 2010
BACKGROUND
MAFISA is operated as an apex system where existing or potential financial intermediaries who are recognised as credit providers in terms of the National Credit Act were accredited as financial intermediaries to retail MAFISA funds.
Currently, 10 financial institutions have been accredited of which 8 are fully operational and each signed a participation agreement with the DAFF in the year 2008 and 2009 respectively for purposes of retailing production loans to emerging farmers and other qualifying applicants.
Existing agreements signed with institutions are that transferred funds revolve within the accredited institution on a dedicated MAFISA account over a period of five years.
CONTINUED
Participating institutions provide performance reports on a monthly and quarterly and annual basis.
For 2009/10 the set target was to accredit 12 financial institutions as MAFISA retail intermediaries
Department staff performs monthly monitoring and inspection to funded projects and internal inspection on dedicated MAFISA accounts within participating institutions.
The types of enterprises funded includes livestock, field crops, vegetables, poultry, ostrich, sugar cane and grapes production etc.
Interest rate charged is 8%
MAFISA BUDGET ALLOCATION
Scheme budget was as follows:2005/06 144,0002006/07 196,0002007/08 248,0002008/09 22,1* Allocation was R243,1m funds were
reprioritized for ILLIMA projects2009/10 367,000
TOTAL 977,000
Committed for MAFISA to date 520,000Transferred to intermediaries 240,000 for production loan purposesRemainder 336,000 reprioritized for mechanization programme,
146,000 reprioritized to address distressed farms
JANUARY-MARCH 2010 QUARTER (4) PERFORMANCE
Institution January amount
Beneficiaries
February amount
Beneficiaries
March amount
Beneficiaries
Total Beneficia-
ries
Total Amount
Rural Finance Corporation
R2 169 800 11 R495 300 1 R142 490 6 18 R2 807 590
National Emerging Red Meat Producers R1 171 865 7 R428 019 7 R1 964 384 20 34 R3 564 268
Magalies Kooperasie R5 328 202 121 0 0 0 0 121 R5 328 202Hlanganani Farming Finance R741 093 11 0 0 R1 380 037 39 50 R2 121 130Peulwana Financial Services R106 194 14 524 000 6 R1 155 000 63 83 R1 785 194
Kaap-Agri R200 000 1 0 0 0 0 1 R 200 000 MADC 0 0 0 0 0 0 0 0
Gauteng Economic Propeller 0 0 0 0 0 0 0 0TOTAL R9 717 154 165 R1 447 319 14 R 4 641 911 128 307 R15 806 384
Table 1: 2009/10 Performance per Accredited Institution
Accredited institution Amount approved (R million
SignedTerm
GeographicOperation
Amount transferred
to institutions(Rmillion
Amount disbursed for loan to
date
Beneficiaries
Rural Finance Corporation
100 2008/09-2013/14
EC 50 R 6,6m 271
National Emerging Red Meat Producers
50 2008/09-2013/14
National 35 R 24,3m 227
Magalies Kooperasie 50 2008/09-2013/14
NW 35 R13,09m 648
Hlanganani Farming Finance
20 2009/10-2013/14
LP 20 R 10.8m 106
Peulwana Financial Services
20 2008/09-2013/14
KZN/GP 20 R 8,1m 179
Kaap-Agri 50 2009/10-2013/15
WC/NC 20 R 2.9m 29
MADC 100 2009/10-2013/15
MP 50 R 242 178 4
Economic Propeller 30 2008/09-2013/14
GP 10 R 70 000 1
Total R420m R240m R66.1 m 1 465
Table 1: 2009/10 Performance per Accredited Institution
Accredited institution Amount approved (R million
SignedTerm
GeographicOperation
Amount transferred to institutions(Rmillion
Amount disbursed for loan to date
Beneficiaries
South African Sugar Association
50 2010/11-2015/16
KZNMP
0 0 0
Vrystaat KoperasieBeperk
50 2010/11-2015/16
FS 0 0 0
IMPACT OF THE SCHEME
Since inception a total of 11000 emerging famers access production loans from MAFISA
To date 560 direct jobs created and 7 500 job opportunities created through seasonal labour
Average repayment rate is currently standing at 75%
THE END
I THANK YOU