"An intensified drought situation has resulted in serious ramifications for our agricultural portfolio which has been worst hit," said Themba Mathe, Ithala's communications and marketing executive. "Warnings from economists of stressful financial times ahead and imminent food price increases have prompted Ithala to proactively identify its affected clients early in the season with a view to alleviating some of their financial pressure.
"As KwaZulu-Natal's provincial development agency, we chose to extend a helping hand to our valued clients during these distressed times rather than sit back and watch the businesses they worked so hard to acquire and grow, diminish before their eyes."
The prevailing economic environment demanded that Ithala be innovative in addressing the challenges. Each case is assessed on its own merit as each farm is different in nature, size, output, revenue and level of debt. Such interventions include the following:
• Suspension or deferment of instalments assessed on a case-by-case basis.
• Facilitating grant assistance from Agribusiness Development Agency through recapitalisation programmes.
• Facilitate assistance from the Department of Rural Development and Land Reform.
Deliberations are also in progress with the South African Cane Growers' Association's agronomists in understanding individual clients' circumstances on a case-by-case basis.
"My transport and plant hire company is based in Stanger and we operate primarily in the agricultural industry. Ithala has been our main source of financial support for quite some time," said GR Group of Companies MD, Raymond Moodley.
"In all these years my business was doing well until the drought hit us hard this year. It has affected my business tremendously. Production is down to 25% and the situation has become incredibly stressful and frustrating. We have 800 people in the company and had no other choice but to resort to retrenchments. I really hope the situation gets better sooner rather than later," he said.
