Agribusinesses need the right financial partner

Standard Bank has prioritized agriculture as one of the key sectors the Bank supports to drive Eswatini’s economic growth. As such, the Bank is intentional about affording financial and business support to the agricultural sector. The sector continues to contribute over 20% of Eswatini’s GDP and the Kingdom’s natural advantages, such as arable land, makes increasing financing to farming an obvious decision.

Additionally, Standard Bank has cemented itself as the preferred financial partner for the sugar industry. Sugar cane is a strategic crop for Eswatini, with over 130 registered sugarcane growers in the country. The sugar industry is one of the largest with revenues exceeding SZL 5 billion. The Bank has invested in the expertise to truly understand the sugar cane farming business particularly in such trying times; both climatologically and economically.

“The business environment in which sugar cane producers operate is challenging and highly competitive as world consumption of sugar diminishes. However, indications suggest a turnaround in the horizon with higher returns for Eswatini sugar in the markets in which it is traded.”  (Pull quote) Eswatini Sugar Association, 2020

Emanating from Standard Bank’s deep-seated understanding of the unique challenges experienced by sugar cane growers, the Bank has forged partnerships with other industry experts to create value for the industry. These specialised solutions are encompassed in the Standard Bank Agricultural Production Loan that offers tailored banking solutions for sugar cane production businesses. The Bank’s comprehensive agricultural strategy aims to support smallholder sugar cane farmers in the following ways;

• Easy access to short-term finance,

• Sector-specific expertise to optimize production,

• Solutions that create competitive pricing advantage to enable access to foreign markets,

• Consistent cash flow management despite difficult market conditions,   

• Reduced cost of agricultural machinery and supporting infrastructure particularly technological upgrades to mitigate climate risks

Standard Bank in partnership with the Renewable Resources Company (TRRC) offers financing for renewable energy solutions that will help agribusinesses to maximise long-term profitability through reduced energy costs. TRRC are specialists in renewable energy solutions, with emphasis on solar energy. TRRC can provide tailored turnkey energy solutions through seamless engineering, building and commissioning of solar projects on sugar cane farms. Considering the ever-increasing cost of electricity, switching to solar can result in significant savings on farming input costs. The Bank can finance this transformation to renewable energy for sugar cane farms through the Agricultural Production Loan which also offers extended repayment terms.

When applying for the Agricultural Production Loan qualifying clients have instant access to a minimum loan amount of E100 000, flexible repayment that is structured for the sugar cane production season as well as Agri-Insure, underwritten by SRIC, for insurance cover against fires, natural disasters and any other damage to the growing sugar cane as well as farming implements such as irrigation equipment.

Standard Bank clients can also enjoy preferential rates when buying a John Deere tractor or farm vehicle through the Bank’s Vehicle and Asset Finance division.  The purpose of this partnership is to avail opportunities for farmers in the country to buy their own farm vehicles at inclusive and accessible rates. John Deere tractors are known for reliability, and their longevity in the Eswatini is tried and tested.

Furthermore, in 2020, Standard Bank sponsored over E500 000 towards the development of the agricultural sector with specific focus on sugar cane growers and other projects that explore ways to mitigate the imminent climate change risks through tunnel farming and drip irrigation in Eswatini. The Bank understands that as agribusinesses grow, they need specific and specialised solutions that will improve productivity and ensure farming sustainability.  Standard Bank is finding new ways to reduce production costs for sugar farmers and resultantly eliminate the barriers to entry in agribusinesses so that Emaswati can grow the food the nation consumes profitably and also access foreign markets through competitive pricing and operational efficiency.

For more information;

Email: [email protected]

Tel: 2517 5310