A thriving hydroponic farm in KwaDukuza is on the brink of collapse after Ithala Bank’s sudden closure cut off access to critical funds.

The Vella Villa Project, founded by Maphumulo-born farmer Mhlengi Ngcobo (26), spans 15 hectares and supplies major retailers like Shoprite and Checkers with fresh tomatoes, sweet peppers, and cucumbers. The farm employs 10 permanent workers, 15 seasonal labourers, and 20 interns in an 18-month farming management programme.

Ngcobo, who won the social entrepreneur category at the KZN Youth Business Awards in 2021, now faces financial turmoil after Ithala Bank ceased operations in January.

“On January 15, we received the devastating news that Ithala Bank had closed its operations. We cannot access our working capital or pay our suppliers through debit orders,” said Ngcobo.

“We have not been able to pay our loyal workers full salaries, which they rely on to support their families.”

The financial blow has disrupted the farm’s entire operation. Without funds to buy fertilizers and agrochemicals, production has been scaled back, and Ngcobo has been forced to reduce the number of active crop tunnels. This has strained relationships with customers and further squeezed cash flow.

Adding to the crisis, the farm’s security company has threatened to withdraw services due to unpaid invoices, putting valuable equipment and produce at risk.

“Our security company has given us a notice of termination for farm guard services unless they receive payments,” Ngcobo said.

Ngcobo is one of about 257 000 Ithala depositors left in limbo after the provincial state-owned bank ceased operations in January, after failing to meet banking regulations and financial stability requirements. At least five other farms across iLembe are also affected.

Despite operating under special exemptions from the South African Reserve Bank, Ithala never obtained a banking licence and primarily served KwaZulu-Natal residents. A repayment administrator has been appointed to manage withdrawals, but legal battles have caused delays, leaving depositors uncertain about how much they will recover and when.

Ngcobo said retrenchments are a last resort, and for now, the business is exploring every possible way to continue operating. He is appealing for donations of production inputs such as fertilizer, agrochemicals and seeds to increase production volumes.

“If we can produce more, we can generate enough running capital to keep our business alive,” he said.

The North Coast community previously supported Ngcobo when heavy winds damaged two of his tunnels last year. Ward 22 councillor, Privi Makhan, rallied residents to repair the tunnels and help him stay on his feet.

People wishing to do the same this time around can contact Ngcobo at 076 961 1177.

Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news.

Mobile users can join our WhatsApp Broadcast Service here or if you’re on desktop, scan the QR code below.