South Africa: Land repossessions threaten hundreds of black farmers

Hundreds of South Africa's emerging black commercial farmers could face eviction in the next few months because of their inability to service government loans to buy the properties, granted under the land reform programme. In July the state-owned Land Bank, which provides financing and advice to black farmers and is pivotal in addressing racially skewed land ownership, told parliament that more than 350 farms would have to be repossessed if the non-payment of loans continued. The bank said it was losing R100 million (about US$13 million) a month as a consequence of unpaid loans and had repossessed 25 farms in the second half of 2008, of which six were owned by emerging black farmers. A moratorium on repossessions for several years had served only to allow the debts of struggling farmers to mount. The moratorium was lifted in July 2008 when oversight of the Land Bank - mired in financial scandals - was moved from the Department of Agriculture and Land Affairs to the finance ministry.