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Opening of Uvimba
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Speeches and Media Releases
 Agriculture

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 EASTERN CAPE PROVINCIAL GOVERNMENT

SPEECH BY MEC MAMASE AT THE OPENING OF UVIMBA

AGRICULTURE THE BACKBONE OF THE PROVINCE

13 JUNE 2000

In January of 1995 then Honourable President of the Republic of South Africa, Nelson Mandela, appointed a commission of enquiry to 
investigate the Provisions of Rural Financial Services. This investigation was intended to look at the needs and aspirations of rural 
people including an assessment of the current and potential demand for rural financial services to review current sources of rural credit 
and other financial services and the extent to which these are meeting the needs of the rural people.

To what extent can this broaden the participation of rural people in rural financial market and therefore they must propose diverse 
financing mechanism to ensure access to financial services with an emphasis on savings mobilisation and finally make sure that there is 
capital retention in rural areas. If we look at the contemporary situation in the rural areas :

a.The lack of infrastructure of any shape or form

b.The absence of financial services

c.The lack of roads, electricity and water

d.The lack of incoming earning opportunities

e.The absence of skill and expertise

This is a brief synopsis of the current situation. In a province which is predominantly rural in all respects agriculture then becomes the 
backbone of development in these areas.

On the basis of the recommendations of the Strauss Commission that there be financial services put in place to assist the rural 
communities. It became incumbent upon us as the driving force for agricultural development in the Province that a financial institution be 
established to encumber both rural and agricultural development as the key components of its financial services. It is against this 
background that the Rural Finance Corporation Act was enacted to create an enabling environment for financial services to deliver to the 
community in general and farmers in particular.

Today, we are meeting here to confirm the realisation of the Strauss Commission’s recommendation. The financial institution which has since 
been established has to design and develop financial packages which, to a certain extent, would make farmers and communities to realise 
their aspirations. Chairperson, this task has been partially done as was explained in the input of the Chief Executive Officer. Key in this 
process is to make sure that those that would benefit from these services would repay their loans without government having to unleash a 
due process of law.

The key areas that would be funded in my view are: production, processing, distribution and marketing. At the heart of this process lies a 
capacity development programme, so that both communities and farmers understand their financial prerogatives. It is incumbent upon 
government too, and the bank in particular, to make sure that the interest rate charged does not burden communities and create poverty 
traps for farmers.

This Financial Institution together with the Agricultural Development Act which highlights a whole range of agricultural schemes create a 
basis for agricultural development and introduces an agrarian revolution. These processes, in my view, are underpinned by the strength and 
capacities of rural communities - the time has come having identified the different land use types as informed by geographic information 
system that together as Government, Communities and Farmers we work in a consolidated partnership for the realisation of BETTER LIFE FOR 
ALL.

It remains to a large extend the responsibility of Government to assist with infrastructure provision and projects development is the 
responsibility of the farmer. Having realise the difficulty that farmers normally encounter in this process we have integrated both 
Research Development and Extension Services into one directorate, we have also put in place an economist unit to assist farmers with the 
development of business plans. This synergy in government is a platform to launch clear cut advisory services to farmers so that they don’t 
bungle any more.

The basic intention for the provision of this financial services is to make sure that we create income earning opportunities for rural 
communities. We are aware that rural communities are predominantly in the hands of women. Because access to resources has always been the 
problem of women, we call upon them now to use this available opportunity so that they are able to harness and enhance their position in 
society.

Chairperson, the Province has finally established this financial institution called UVIMBA Limited. It is the intention of government that 
within ten years this Bank would have grown to the extent that government participation is no longer needed and therefore an investigation 
must begin now as to how and where rural communities and farmers will fully participate in this Institution and run with it. It is also our 
belief that this Bank would give rise to Village Banks whose primarily responsibility would be the mobilisation of finances and in turn 
assist the rural communities in financial services even pensioners would have a place for banking and depositing.

Chairperson, let me take this opportunity to commend members of the Task Team,Boards and Labour for their tireless efforts in making the 
birth of this Institution realisable and a success. Lastly, I wish to thank the Minister of Agriculture, National Department of 
Agriculture, Land Bank and Kula Finance Corporation for their support in the establishment of this Finance Corporation -UVIMBA.

Chairperson a foundation has been laid - the government communities and farmers must start building a home for our future and the next 
generation. I take this opportunity to officially launch UVIMBA FINANCE LIMITED.

THANK YOU

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