Improving Agricultural Market Performance:
Creation and Development of Market Institutions
161
Classification Institution Description
 An online database showing daily trade volumes and prices
by product.
Commodity
Exchange
Platform
South African
Futures
Exchange
South African Futures Exchange (SAFEX) is the derivatives market of
the Johannesburg Stock Exchange (JSE). It offers a platform for price
discovery and efficient price risk management for the grains market in
South and Southern Africa, with futures and options contracts
available for white maize, yellow maize, wheat, soya beans and
sorghum. In addition to agricultural derivatives, SAFEX offers
currency and energy futures, which facilitate hedging against changes
in fuel prices or exchange rates.
State-Owned
Economic
Enterprise
South African
Forestry
Company Ltd.
The South African Forestry Company Ltd. (SAFCOL) is a state-owned
economic enterprise listed under Schedule 2 of the PFMA.
State-Owned
Economic
Enterprise
Land and
Agricultural
Development
Bank of South
Africa
The Land and Agricultural Development Bank of South Africa (Land
Bank) is a state-owned economic enterprise listed under Schedule 2 of
the PFMA. The Land Bank is a specialist agricultural bank guided by a
Government mandate to provide financial services to the commercial
farming sector and agribusiness, and makes available financial
products to new entrants to agriculture from historically
disadvantaged backgrounds. The Land Bank offers both long-term
loans for capital expenditure and permanent working capital, and
revolving loan facilities.
State-Owned
Economic
Enterprise
Inala Farms Ltd Inala Farms Ltd is a state-owned economic enterprise listed under
Schedule 3B of the PFMA. Inala Farms covers more than 1,300
hectares and is located Mpumalanga Province. The estate has been
part of a land reform project and produces bananas, sugarcane,
mangoes and litchis.498
State-Owned
Economic
Enterprise
Ncera Farms Ltd Ncera Farms Ltd is a state-owned economic enterprise listed under
Schedule 3B of the PFMA. Ncera Farms is located in the Eastern Cape
province. It looked to increase the production capacity of local
smallholders, and boost activities include livestock farming, open land
and tunnel cropping, goat farming, beef processing, as well as
hydroponic vegetable production.499 Ncera Farms was supposed to
create about 400 jobs.
State-Owned
Economic
Enterprise
Kwazulu-Natal
Agribusiness
Development
Agency
Kwazulu-Natal Agri-Business Development Agency is a state-owned
economic enterprise listed under Schedule 3C of the PFMA. Its key
mandate is to support black commercial farmers, especially in the
land reform program and in the context of food prices hikes, over-
indebtedness, and lack of farming skills.500 The agency’s mandate
recently shifted from solely agricultural value-addition to the whole
agricultural market system. Services to support farmers include
financial resources mobilization, agri-business market infrastructure
services, agri-business facilitation services, and knowledge and
information services.
Source: Investment Consulting Associates – ICA (2017)
498 News24 (2005), Flagship farm in trouble, available a
[Accessed July 2017].
499 BusinessLive (2016), Government is to deregister state-owned farm Ncera, available at
Accessed July 2017].
500 Kwazulu-Natal Agribusiness Development Agency (2014), Welcome to ADA, available a
[Accessed July 2017].