The Agricultural Business Chamber (Agbiz) has cautioned of uncertainty within the agricultural sector that would emerge as a result of a coalition government in case no single political party wins an outright majority in the May 29 general elections.
Agbiz chief economist Wandile Sihlobo yesterday said the seventh administration of democratic South Africa may have to refresh its economic policies when it assumes office.
Sihlobo, however, said that in Agbiz’s view, South Africa’s agricultural policy did not require any review.
“For some sectors of the economy, such a review may be necessary. The global environment in which we operate has changed significantly in recent months, partly because of the rising geopolitical tensions and their associated economic risks,” he said.
“The sector needs a sharper focus on implementing the existing programmes. The focus should be primarily on the execution of responsibilities of the various directorates at the national and provincial levels of the Department of Agriculture, Land Reform and Rural Development.”
Last week, the Franchise Association of South Africa (Fasa) also warned of a detrimental effect on business confidence and growth the ‘freezing’ of posts and initiatives could have in the run up to the elections next month.
Meanwhile, Sihlobo conceded that there has been growing anxiety about the slow pace of implementing the Agriculture and Agro-Processing Master Plan (AAMP) amongst the industry and organised agriculture stakeholders,
Sihlobo, however, said the government and social partners had finished the plan at a tricky time.
“As the implementation process was set to start, various challenges took focus away from the AAMP. These include the persistent load-shedding in recent years, logistical constraints at ports, protectionism in export markets such as China (wool), EU (citrus), and Africa (vegetables), and the spread of animal disease (foot and mouth disease in cattle, African swine fever in pigs, and avian influenza in poultry),” he said.
“These events meant that the government and various industry stakeholders moved into ”crisis” mode, and the attention shifted from the AAMP. Indeed, there has also been a lack of focus and interest in collaborating with businesses at a provincial level of the government, contributing to the slow implementation of the policies.”
Sihlobo said that while Agbiz presented the view that the appropriate policies and programmes for the next administration in agriculture needed not change drastically, additional matters required the nation’s focus that has weighed on sentiments in farming and agribusiness.
He said these included the ongoing El Niño-induced drought that has devastated the summer grains and oilseed regions, persistent port inefficiencies, poor rail and road infrastructure, and worsening municipal service delivery.
Rising incidents of crime, lingering animal disease challenges, security of electricity supply and increased geopolitical uncertainty remain top-of-mind challenges for agribusinesses, he said.
BUSINESS REPORT