Chairperson, I don't think that direct lending is a magic bullet; I think there are some very important debates about development finance institutions which we still have to have.
If we want institutions like Khula to take more risk - in particular in a sector where the rate of survival of small businesses, from start-up to surviving the first year, is only about 50% - are we then willing to address the issues of financing in that kind of context? I think those are some of the bigger debates.
Direct lending itself will improve access to the products. Some small businesses obviously seek finance through intermediaries, but then the intermediaries also take their cut.
Some of the work, in particular work done by intermediaries through the banks, has been through the guarantee scheme. We had a long debate with the banks and at the end of the day the banks said that they did not want guarantees against defaults; they actually wanted other customers that they wanted to support. I think that indicates that there is a failure in the market and that there is a gap that Khula needs to fill progressively on an improved basis. Thank you.
Investigation into alleged inhumane treatment of farmworkers in Stellenbosch
125. Mrs N M Twala (ANC) asked the Minister of Agriculture, Forestry and Fisheries:
Whether, with reference to a protest by farmworkers outside Parliament recently, she or her department has conducted any investigation into the alleged inhumane treatment of farmworkers in Stellenbosch; if not, why not; if so, what were the findings of the investigation?