Agriculture

Mtambo Farming

Nkosana Mtambo shows how the right financial partner that goes beyond banking can support rapid business growth.

The context

Based in Vrede in the eastern Free State, Mtambo Farming was started when Free State farmer Nkosana Mtambo received a piece of land as a gift for his 21st birthday. The young farmer started his farming career with 24 head of cattle, quickly developing the generous gift of land into a successful farm. Since then, his operation has expanded, with Mr Mtambo now owning livestock distributed throughout the Free State and Gauteng's Vaal Triangle.

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The challenge

At the outset Mtambo Farming faced many challenges. The budding farm had to face a drought, , while stock theft and farm killings in the area were always a tangible concern.

To add to these problems, a lack of basic financial understanding, compounded by a poor credit history and limited knowledge with respect to cash flow, savings, loans and bad debt, made it difficult for the founder to gain traction and have a clear view of the financial future of the company.

The solution

After Mr Mtambo moved his business bank account to Standard Bank in 2018, his outlook and prospects changed. Although the bank could do little about the natural and criminal elements the business faced, we could address Mr Mtambo’s financial difficulties.

Our team gave him the warm welcome we give every client and shared with him all the important details that he needed to know regarding the relationship we were proposing. We explained the functioning of the banking system and all the charges and benefits of the agribusiness account.

We also welcomed Mr Mtambo into our mentorship programme, a Beyond Banking initiative in partnership with the University of the Free State. The programme is designed to support entrepreneurs in gaining the financial knowledge and understanding needed to start, manage and grow a successful business in South Africa.

The outcome

Mr Mtambo has become a financially savvy and confident business owner, effectively managing his now interprovincial operation. He has two dedicated agribusiness accounts, one for livestock and one for crops, facilitating the smooth expansion of his farming operation.

He has a permanent workforce of eight staff, which he expands to 16 when needed seasonally. This helps to support his view that “dreams that look impossible for now,” are still achievable.

Having achieved a level of success through the help of Standard Bank, he looks to empower other young South Africans, sharing his experience of the importance of understanding finance and banking, as well as the benefits of mentorship programmes.

Nkosana Mtambo

“We are not the leaders of tomorrow. We are leading now.”