1.1. Western Cape Province all declared District Municipalities

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The Land and Agricultural Development Bank of South Africa P O Box 375 Pretoria 0001 Block D Eco Glades 2 Office Park, 420 Witch Hazel Avenue Eco Park CENTURION

za 15 November 2017 AGRI SA LAND BANK DROUGHT RELIEF PROGRAMME 1. Areas Covered 1.1. Western Cape Province all declared District Municipalities Mr M A Moloto

1 The Land and Agricultural Development Bank of South Africa P O Box 375 Pretoria 0001 Block D Eco Glades 2 Office Park, 420 Witch Hazel Avenue Eco Park CENTURION Registered credit provider: Reg number NCRCP18 Tel: +27 (0) Fax: +27 (0) November 2017 AGRI SA LAND BANK DROUGHT RELIEF PROGRAMME 1. Areas Covered 1.1. Western Cape Province all declared District Municipalities Mr M A Moloto (Chairman) Mr T P Nchocho (Chief Executive Officer) Ms S A Lund Ms T T Ngcobo Ms D Motau Ms N Zwane Ms D Hlatshwayo Adv S J H Coetzee Ms M E Makgatho Ms G Mtetwa Mr B van Rooy (Chief Financial Officer) Mr MK Mzaidume (Company Secretary)

1.2. Eastern Cape a) Sarah Baartman District Municipality Description: The Sarah Baartman District Municipality (previously Cacadu District Municipality) is a Category C municipality situated in the

2 1.2. Eastern Cape a) Sarah Baartman District Municipality Description: The Sarah Baartman District Municipality (previously Cacadu District Municipality) is a Category C municipality situated in the Eastern Cape Province. It stretches from Graaff-Reinet in the north to the Indian Ocean in the south and between the Great Fish River in the east and Bloukrans River in the west. It comprises seven local municipalities: Dr Beyers Naudé, Blue Crane Route, Makana, Ndlambe, Sundays River Valley, Kouga and Koukamma. The district surrounds one of the largest metropolitan ports in South Africa, Nelson Mandela Bay (Port Elizabeth). Cities/Towns: Aberdeen, Addo, Adendorp, Alexandria, Alicedale, Bathurst, Boknes/Cannon Rocks, Bushmans River, Cape St Francis, Clarkson, Cookhouse, Graaff-Reinet, Grahamstown, Hankey, Humansdorp, Jansenville, Jeffreys Bay, Joubertina, Kareedouw, Kendrew, Kenton-on-Sea, Kirkwood, Klipplaat, Krakeel River, Loerie, Louterwater, Misgund, Nieu-Bethesda, Nompumelelo, Oyster Bay, Patensie, Paterson, Pearston, Petersburg, Port Alfred, Riebeek East, Rietbron, Sanddrif, Seafield, Sidbury, Somerset East, St Francis Bay, Steytlerville, Storms River, Thornhill, Waterford, Willowmore, and Woodlands. Page 2 of 7

b) Nelson Mandela Bay Metropolitan Municipality Description: Nelson Mandela Bay is a major seaport and automotive manufacturing centre located on the south-eastern coast of Africa.

3 b) Nelson Mandela Bay Metropolitan Municipality Description: Nelson Mandela Bay is a major seaport and automotive manufacturing centre located on the south-eastern coast of Africa. Its boundaries are formed by Cassie Mountain View in the north, Cape Recife in the south, Sundays River Mouth in the east, and Van Stadens River Mouth in the west. Cities/Towns: Bethelsdorp, Bloemendal, Blue Horizon Bay, Clarendon Marine, Despatch, KwaNobuhle, Motherwell, Port Elizabeth and Uitenhage. Page 3 of 7

2. Areas Covered Namakwa District Municipality Description: The Namakwa District Municipality is a Category C municipality located in the Northern Cape Province.

4 2. Areas Covered Namakwa District Municipality Description: The Namakwa District Municipality is a Category C municipality located in the Northern Cape Province. It is bordered by the republic of Namibia in the north, ZF Mgcawu Local Municipality in the northeast, Cape Winelands District Municipality in the south, West Coast District Municipality in the south-west, Pixley Ka Seme District Municipality in the east, Central Karoo District Municipality in the southeast, and the Atlantic Ocean in the west. It comprises of six local municipalities: Nama Khoi, Hantam, Khai- Ma, Kamiesberg, Karoo Hoogland and Richtersveld. Cities/Towns: Aggeneys, Alexander Bay, Brandvlei, Bulletrap, Calvinia, Carolusberg, Concordia, Eksteensfontein, Frasersburg, Garies, Hondeklip Bay, Kamieskroon, Kleinzee, Koingnaas, Komaggas, Kuboes, Leliefontein/Kamiesberg, Loeriesfontein, Middelpos, Nababeep, Nieuwoudtville, O'Kiep, Onderste Doorns, Pella, Pofadder, Port Nolloth, Richtersveld, Sanddrift, Springbok, Steinkopf, Sutherland and Williston. Page 4 of 7

5 3. Timeframe Availability is until 31 March Eligible Purpose 4.1. Vineyards, fruits and other perennial crops a) Long term & Medium term loans Restructure and capitalize arrears/instalment due Modification of terms of the original agreement, mostly applicable to at least one year old loans Provision of re-establishment loan Repayment holiday (capital and/or interest) depending on cash flow projections up to 24 months b) Production loans Carry-over of debt up to 5 years Production loan for new season 4.2. Grain and other field crops a) Long term & Medium term loans Restructure and capitalize arrears/instalment due Modification of terms of the original agreement, mostly applicable to at least one year old loans b) Production loans Carry-over of debt up to 5 years Production loan for new season 4.3. Livestock a) Medium term loans Restructure and capitalize arrears/instalment due Modification of terms of the original agreement, mostly applicable to at least one year old loans Herd rebuilding Repayment holiday (capital and/or interest) depending on cash flow projections up to 18 months b) Production loans Feed for livestock Veterinary expenses Any other short term direct cost associated with the drought Page 5 of 7

6 5. Eligible Customers a) Existing Land Bank customers within declared areas based on own merits. b) New customers to be assessed according to the existing credit criteria as set out in the credit policy as well as this circular. c) Applications that were in the pipeline and in the process of registering a bond before or on 30 June 2017 for other provinces not covered beyond 1 July Maximum loan A single obligor or related entities in a group may be granted up to R20 million. 7. Term of the facility Up to 8 years. 8. Interest Rate Prime less 3 percent (p-3%) for 1st year and subject to annual review for subsequent years. 9. Credit Criteria a) All loans must comply with current credit policy with respect to balance sheet, income repayment ability, security and approved credit policy exceptions will be considered on own merit b) An agricultural due diligence report is required for all applications and information should not be older than 6 months included and must be a wellarticulated turn around business case. 10. Exclusions a) Distressed accounts due to other reasons, not drought related, are excluded from this scheme, but may apply using the normal credit criteria b) Over indebted customers c) Customers from undeclared areas 11. Other considerations a) A sound business case needs to be provided for all drought relief supported by at least 2 years cash flow forecast b) All losses incurred must be well explained and must be attributable to drought for consideration c) Crop insurance must be mandatory for grain and other field crops d) Qualifying customers must be visited bi-annually for up to 24 months, thereafter in line with the valuation policy, as follow: Vineyards, fruits and other perennial crops: bi-annually before the production season (bloom phase) and during harvesting season Grain: bi-annually after germination and just before or during harvest Livestock: bi-annually in line with Portfolio Performance Monitoring year plan. Page 6 of 7

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PART 1 INTRODUCTION AND OVERVIEW

PART 1 INTRODUCTION AND OVERVIEW EXECUTIVE MAYOR S FOREWORD It gives me great pleasure to present this Annual Report to our communities, our partners in Government and to our various stakeholders. This