Standard Bank is committed to demonstrating responsible corporate citizenship by supporting social transformation and job creation.
Our commitment to black economic empowerment (BEE) is driven by our need to create an economically sustainable black business sector as the foundation for our growth and profitability.
Funding requirements for BEE include buying into an existing farming operation, the expansion of an existing operation, integration along the value chain, contract finance and communal land.
A Leveraged Finance Team has been put together facilitate the application for BEE finance. This team can also provide guidance regarding the structure of deals and how the different parties could be organised effectively.
In BEE deals where the equity (own contribution) is low, Land Redistribution for Agricultural Development (LRAD) grants from the government could be considered to improve equity. The Bank will assist customers in applying for LRAD grants.
Where risk based pricing is applied, BEE enterprises often attract a higher interest rate. The Khula Land Reform Empowerment Facility (LREF) is used to re-finance BEE enterprises at a reduced rate. This effectively results in a subsidized interest rate that will further improve the sustainability of the BEE enterprise. The LREF is accessed through the Bank.
For further information on AgriBEE contact:
Diale Mokgojwa on Diale.Mokgojwa@standardbank.co.za or +27 11 721 7713