Description
In July 2013 the Department of Performance, Monitoring and Evaluation, in collaboration with the Department of Agriculture, Forestry and Fisheries, commissioned Business Enterprises at University of Pretoria (Pty) Ltd in collaboration with The Centre for Inclusive Banking in Africa and Infusion Knowledge Hub (Pty) Ltd to conduct an impact study of MAFISA. The impact assessment was conducted between July 2013 and October 2014.
The liberalisation of the agricultural sector which began in 1992 resulted in reduced state support to the agriculture sector. By 2003, the state found that financial services to smallholder farmers were inadequate, that farmer support was neglected in the budgetary process, and that there was a need to re-establish an agricultural credit scheme in the department. In 2004 the CASP was implemented with MAFISA as its financial services pillar. Drawing on the Strauss Commission’s (1996) recommendations, MAFISA’s approved business plan envisaged it as an independent institution underwritten by the state and implemented through financial intermediaries (FI). R1 billion was made available to establish MAFISA from the Agricultural Debt Management Account.
