Farmers Review Africa Sept/Oct 2019 Farmers Review Africa September - October 2019 dig | Page 7

NEWS
Agriculture offers best hopes for
economic growth in South Africa
T
he Southern Africa Agri Initiative (Saai)
welcomes
the
national
treasury’s
discussion document on economic policy
that was released on 27 August 2019. This 62-
page document focuses on five themes that will
put a stop to weak economic growth and rising
unemployment in the long run.
A large part of the document focuses on the
agricultural and services industries because
these sectors are in the best position to bring
about labour-intensive growth.
Improved access to financing, affordable
agricultural insurance, agricultural technical
advisory services for developing farmers and
access to markets are some of the priorities cited
to create a more friendly environment where
agriculture can thrive.Theo de Jager, Saai’s
Chairperson of the Board of Directors, says the
direction and content of the discussion document
represent a fresh breeze from government
circles, and he hopes it will meet with approval
in wider circles than treasury only. The elephant
in the room, that is not taken into account by the
document, is the damper on investment appetite
caused by BEE requirements and large-scale
fraud.
In this regard, the discussion document is in
sharp contrast to the threats expressed by Thulas
Nxesi, minister of labour, to force more draconic
race quotas on companies.
Saai is especially excited about the proposals
made by Tito Mboweni, minister of finance, on
a possible subsidised insurance scheme for
agriculture, because it will promote access to
financing, broaden risk management and create
a unique opportunity to collect production data.
“It also is striking that the report underlines the
important role of right of ownership and the
possession of assets. Following the recent
Graham judgment on the extension of the
Upgrading of Land Tenure Rights Act, we would
like to see that beneficiaries of land reform and
the LRAD programme receive title deeds for their
land,” says Francois Rossouw, CEO of Saai.
Saai believes if the proposals put forward in
the discussion document are implemented,
competitiveness of South African agriculture will
increase rapidly.
At the invitation of Mboweni, Saai has undertaken
to comment on the agricultural strategy proposed
in the document not later than 15 September 2019.
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