Independent Newspapers

Economic Development Minister Ebrahim Patel. Photo: Leon Nicholas

The agricultural sector has welcomed development prospects described in the New Growth Path (NGP) announced recently by Economic Development Minister Ebrahim Patel.

But it complains of lack of clarity on the way forward and criticises the quality of infrastructural support.

The NGP aims to create 5 million jobs by focusing on labour-intensive sectors believed to have the potential to stimulate economic growth.

These include infrastructure – ranging from transport, energy and water to communications and housing – agriculture, mineral beneficiation, the green economy, the manufacturing sector and tourism.

The chief executive of the Agricultural Business Chamber (ABC), John Purchase, said the NGP was still vague on rural development, citing a number of issues in the agricultural sector that still needed to be addressed.

“There is a lot of detail which is still lacking and we need to know more about government thinking,” he said.

“However, we welcome the focus on agriculture and job creation. We need to engage with government and the business community is willing.”

He expressed concern about the limited support from the government in the sector, arguing that it was the least supported agricultural sector in the world, which made it impossible to be competitive.

“The sector needs to be more competitive with a bigger market place for black farmers to enter market stream agro-food value chains.”

The ABC manager of economic intelligence, Lindie Stroebel, said primary agriculture currently employed close to 600 000 people.

Stroebel added that it contributed 3 percent of the country’s total gross domestic product and far more in terms of value added as food was processed.

Absa’s head of agribusiness, Ernst Janovsky, was optimistic about the NGP and said it would be beneficial to business in the agricultural sector.

“The sector needs environmentally friendly policies that drive potential for agriculture where businesses have access to land and water and an upgraded transportation system,” Janovsky said.

He said more social spending was required in the rural areas where agriculture played a prominent role. - Business Report