AEE 7000

If you were starting a farm tomorrow, what would you spend most of your money on first?

• • Buying land

• • Buying tractors/machinery (especially if it is cheaper)

• • Hiring labour (start working on the business plan)

• • Buying livestock/seeds

Farmer Thabo wants to expand his poultry business but doesn’t have enough savings. Which source of loan capital would be most relevant?

• • Land Bank

• • Informal stokvels

• • Commercial banks like ABSA/Standard Bank

• • All of the above

All farmers in South Africa find it equally easy to access credit from banks.

• True

• False

• Depends on your connections

When a farmer borrows money, the bank usually wants _______ to make sure the loan is safe.

In your opinion, what is the BIGGEST challenge South African smallholder farmers face when trying to get credit?

• • High interest rates

• • Strict bank requirements

• • Limited financial literacy

• • Lack of collateral